Parliamentary.ai

Overview

This bill mandates that larger employers in England, Wales, and Scotland publish data on ethnicity pay gaps. It aims to improve transparency and potentially address ethnic pay disparities within the workforce.

Description

The Workforce Information (Ethnicity) Act 2024 amends the Equality Act 2010. It requires employers with 250 or more employees to annually publish data showing pay differences between employees of different ethnic origins. This includes disaggregated data for various ethnic groups and the overall percentage of employees from each group. The Secretary of State will set regulations detailing how to collect and publish this information, including what constitutes an employer and employee, data calculation methods, publication timelines and format. Employers failing to comply will face penalties including fines or action by the Equality and Human Rights Commission. The bill excludes small employers (under 250 employees), certain specified persons and government entities outlined in Schedule 19 of the Equality Act 2010, and parts of the armed forces (unless specifically listed in Schedule 19). A public consultation must take place before the regulations are finalized, involving relevant stakeholders.

Government Spending

The bill doesn't directly allocate new government funding but will incur costs associated with developing and enforcing the regulations, public consultation, and potential enforcement actions. No specific figures are provided in the bill text.

Groups Affected

• Employers with 250+ employees: Required to collect, analyze and publish ethnicity pay gap data, potentially incurring administrative costs and facing penalties for non-compliance.
• Employees: May benefit from increased transparency regarding pay disparities based on ethnicity.
• Equality and Human Rights Commission: Responsible for enforcing the regulations if employers don't comply.
• Charities and NGOs representing ethnic minority groups: Involved in the public consultation process.
• Business representative organisations and professional bodies: Also involved in the public consultation process.