Addressing Equality: Expanding Pay Gap Reporting and Redefining Worker Status
- Employment Law
- 19th Jul 2024
Expanding Pay Gap Reporting Currently, there are obligations surrounding gender pay gap reporting, but no such duty is set for ethnicity and disability. Labour’s Proposed Change Labour intends to expand pay gap reporting through the drafting of the Equality (Race and Disability) Bill. This is set to mean that ethnicity and disability pay gap reporting […]
By Amy Jefferson
MLP Law
Expanding Pay Gap Reporting
Currently, there are obligations surrounding gender pay gap reporting, but no such duty is set for ethnicity and disability.
Labour’s Proposed Change
Labour intends to expand pay gap reporting through the drafting of the Equality (Race and Disability) Bill. This is set to mean that ethnicity and disability pay gap reporting will be mandatory for employers with at least 250 employees.
- Expected Benefits: fairer pay practices and increased equality and diversity in the workplace.
- Potential Challenges: additional reporting requirements for employers; and ensuring accurate data collection and analysis.
Implementation
Employers will need to develop clear reporting frameworks.
Redefining Worker Status
Currently, employees enjoy the full suite of employment rights, while workers receive only certain protections.
Labour’s Proposed change
Labour proposes to create a single status of ‘worker’, eliminating the distinction between employees and workers to remove the perceived ability of businesses to exploit the confusion between these different statuses. Labour’s aim here appears to be to ensure fairer treatment for all, especially those in the so called ‘gig economy’.
- Expected Benefits: increased rights and protections for gig economy workers, fairer treatment, and improved working conditions.
- Potential Challenges: resistance from businesses benefiting from the flexibility of the current system and legal complexities in redefining employment statuses.
Implementation
Clear guidelines and support for businesses will be essential, with the new system potentially being phased in over time to minimize disruption.
Unpaid internships
At present, businesses may hire unpaid interns.
Labour’s Proposed Change
Labour have set intentions to ban unpaid internships. Only paid internships or those part of educational programs will be allowed.
- Expected Benefits: increased job satisfaction and value put on the work of interns.
- Potential Challenges: employers will need to consider internship candidates more carefully due to additional costs for the business involved.
About the expert
Amy Jefferson
Paralegal - Employment Law
Following the completion of her undergraduate degree in Law, Amy started her legal career at a trade union law firm based in Sheffield in September 2022.
Amy’s interest in legal practice began following a series of trips to the Manchester Crown Court public gallery with her Grandad. What started as a few day trips sparked a real interest in legal practice and a few years later she undertook work experience with a high street firm in Bramhall specialising in employment law.
This area was further explored during university by studying an elective module in employment law and completing a part time work placement in employment law alongside studies in her final year. After university, looking to explore her options she began working in personal injury. However, quickly missing the pace and range of employment law, she returned to the area and has found the work to be meaningful and rewarding.
In her spare time, Amy likes to attend live music events and go for walks in the Peak District.
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