Consultation outcome

Annex A: Draft primary legislation

Updated 25 March 2026

This annex sets out draft clauses of primary legislation to introduce mandatory ethnicity and disability pay gap reporting for large employers. The clauses are draft only, and may be subject to further refinement. 

77A Disability pay gap and workforce composition information 

(1) Regulations may require employers to publish information relating to the pay of employees for the purpose of showing whether, by reference to factors of such description as is prescribed— 

    (a) there are differences between the pay of disabled employees and employees who are not disabled; 

    (b) there are differences between the pay of employees with a particular description of disability and— 

        (i) employees with different descriptions of disability, or

        (ii) employees who are not disabled. 

(2) Regulations may require employers to publish information relating to the proportion of their employees who— 

    (a) have a disability; 

    (b) have a particular description of disability. 

(3) This section applies to an employer that is a public authority only if it is— 

    (a) specified in Part 1 of Schedule 19; or 

    (b) specified in Part 4 of Schedule 19 with the letter “D” included after the entry. 

(4) This section does not apply to an employer with fewer than 250 employees. 

(5) Regulations under this section may prescribe— 

    (a) descriptions of employer; 

    (b) descriptions of employee; 

    (c) descriptions of disability; 

    (d) how to calculate the number of employees that an employer has; 

    (e) descriptions of information; 

    (f) how to collect and process information about employees; 

    (g) the time at which information is published; 

    (h) the form and manner in which it is to be published. 

(6) Regulations under subsection (5)(e) may, among other things, make provision, in a case where an employer is a principal in relation to an individual who is a contract worker, requiring publication of the identity of the person who has contracted with the principal for the supply of the individual. 

(7) In subsection (6), “principal” and “contract worker” have the meaning that they have in section 41 (see section 41(5) and (7)).

(8) Regulations under subsection (5)(g) may not require an employer, after the first publication of information, to publish information more frequently than at intervals of 12 months. 

(9) The regulations may make provision for a failure to comply with the regulations to be enforced, otherwise than as an offence, by such means as are prescribed. 

77B Race pay gap and workforce composition information 

(1) Regulations may require employers to publish information relating to the pay of employees for the purpose of showing whether, by reference to factors of such description as is prescribed, there are differences in the pay of employees who are of different descriptions of race. 

(2) Regulations may require employers to publish information relating to the proportion of their employees who are of different descriptions of race. 

(3) This section applies to an employer that is a public authority only if it is— 

    (a) specified in Part 1 of Schedule 19; or 

    (b) specified in Part 4 of Schedule 19 with the letter “D” included after the entry. 

(4) This section does not apply to an employer with fewer than 250 employees. 

(5) Regulations under this section may prescribe— 

    (a) descriptions of employer; 

    (b) descriptions of employee;

    (c) descriptions of race (and a particular description may consist of two or more different races); 

    (d) how to calculate the number of employees that an employer has; 

    (e) descriptions of information;

    (f) how to collect and process information about employees; 

    (g) the time at which information is published; 

    (h) the form and manner in which it is to be published. 

(6) Regulations under subsection (5)(e) may, among other things, make provision, in a case where an employer is a principal in relation to an individual who is a contract worker, requiring publication of the identity of the person who has contracted with the principal for the supply of the individual.

(7) In subsection (6), “principal” and “contract worker” have the meaning that they have in section 41 (see section 41(5) and (7)). 

(8) Regulations under subsection (5)(g) may not require an employer, after the first publication of information, to publish information more frequently than at intervals of 12 months. 

(9) The regulations may make provision for a failure to comply with the regulations to be enforced, otherwise than as an offence, by such means as are prescribed. 

78A Equality action plans 

(1) Regulations may require employers to— 

    (a) develop and publish a plan (an “equality action plan”) showing the steps that the employers are taking in relation to their employees with regard to prescribed matters related to gender equality, disability equality and racial equality, and

    (b) publish prescribed information relating to the plan. 

(2) This section does not apply to an employer with fewer than 250 employees.— 

(2A) This section applies to an employer that is a public authority only if it is— 

    (a) a public authority specified in Part 1 of Schedule 19; or 

    (b) a public authority specified in Part 4 of Schedule 19 with the letter “D” included after the entry. 

(3) For the purposes of subsection (1), a matter is related to— 

    (a) gender equality, if it is related to advancing equality of opportunity between male and female employees; 

    (b) disability equality, if it is related to advancing equality of opportunity between employees who are disabled and employees who are not, or between employees with different types of disability; and 

    (c) racial equality, if it is related to advancing equality of opportunity between employees of different descriptions of race. 

(4) Accordingly, matters related to gender equality include— 

    (a) matters related to gender equality include— 

        (i) addressing the gender pay gap, and 

        (ii) supporting employees going through the menopause; 

    (b) matters relating to disability equality include addressing the disability pay gap; and 

    (c) matters relating to racial equality include addressing the race pay gap. 

(5) The regulations may, among other things, make provision about— 

    (a) the content of a plan; 

    (b) the form and manner in which a plan or information is to be published; 

    (c) when and how frequently a plan or information is to be published or revised; 

(d) requirements for senior approval before a plan or information is published; 

(e) descriptions of employers; 

(f) descriptions of employee; 

(g) descriptions of information. 

(6) The regulations may not require an employer, after the first publication of information, to publish information more frequently than at intervals of 12 months. 

(7) The regulations may make provision for a failure to comply with the regulations to be enforced, otherwise than as an offence, by such means as are prescribed. 

(8) The reference to a failure to comply with the regulations includes a reference to a failure by a person acting on behalf of an employer. 

(9) A Minister of the Crown must consult— 

(a) the Commission, before making regulations under this section that apply to a public authority, and 

(b) the Welsh Ministers, before making regulations under this section that apply to a public authority specified in Part 4 of Schedule 19 with the letter “D” included after the entry.