Consultation on mandatory ethnicity and disability pay gap reporting - Law Society response

The proposals

The consultation sought views on how to introduce mandatory ethnicity and disability pay reporting for large employers (those with 250 or more employees).

Large employers already report on their gender pay gaps. The consultation considers how ethnicity and disability pay gap reporting could work in practice.

Our view

We support the government’s broader aim of advancing workplace equality by making pay practices more transparent.

We see pay gap reporting as an important accountability tool that pushes employers to:

• identify and address disparities
• promote genuine inclusion
• ensure better compliance with anti-discrimination laws

Introducing mandatory ethnicity and disability pay gap reporting could further the objectives and progress made by the Equality Act 2010 and improve employment prospects for underrepresented groups.

However, while enhanced transparency can drive progress, it also brings distinct risks and challenges, such as those in data collection, that must be closely examined.

To support this initiative, we believe the government should first pursue a full evaluation of the impact that mandatory gender pay gap reporting has had on workplace policies and practices before deciding to implement ethnicity and disability reporting.

This assessment would help make sure any new measures effect meaningful change rather than serving as a compliance exercise.

What this means for solicitors

Mandatory ethnicity and disability pay gap reporting could promote transparency and fairness.

It would also require solicitors – both as employers and advisers – to manage sensitive data collection, ensuring legal and ethical compliance.

Next steps

The consultation closed on 10 June.

The Office for Equality and Opportunity are analysing the feedback received.

Read the full consultation on the government website.