Overview

This bill mandates that large employers in England and Wales publicly report on pay differences between ethnic groups within their workforce. The aim is to increase transparency and address potential ethnic pay gaps.

Description

The Ethnicity Pay Gap Bill requires the Secretary of State to create regulations forcing employers to report on pay differences between ethnic groups. These regulations will detail what information must be included in the reports (employee and employer data, calculation methods, reporting frequency, and format).

The bill exempts smaller employers (under 250 employees), public authorities (as listed in Schedule 19 of the Equality Act 2010), government departments, and the armed forces from reporting requirements.

Reports must not be required more often than annually, and failure to comply is punishable by a fine. The regulations must be approved by both Houses of Parliament before implementation.

Government Spending

The bill doesn't directly specify government spending. However, implementing and enforcing the regulations will likely involve some costs associated with creating and managing the reporting system, as well as potential enforcement actions against non-compliant organizations. The exact amount is not detailed in the provided text.

Groups Affected

The bill primarily affects:

• Large Employers (250+ employees): Required to collect, analyze, and report pay data by ethnicity, potentially incurring administrative costs.
• Employees: May benefit from increased transparency regarding potential pay disparities.
• Government Departments (Exempt): Not required to report but may still need to address any internal pay disparities.

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