11 May WORKPLACE GENDER EQUALITY

On 30 March 2023, Federal Parliament passed the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 (“the Bill”). The reforms aim to close the gender pay gap in Australia by increasing reporting, transparency and facilitating workplace gender pay gap action. This Bill was in response to the 2021 Review of the Workplace Gender Equality Act 2012 (“the Act”), which concluded that the gender pay gap in Australia was not closing at a fast enough rate.

The Act applies to private and Commonwealth companies or entities who employ 100 or more employees.  Whilst the Act already requires relevant employers to promote and improve gender equality in the workplace, including through the lodgement of annual reports containing information relating to gender equality indicators, the Bill aims to improve pay gap transparency and accountability. 

What is the Current Position?

Under the Act, employers with 100 or more employees in Australia are required to prepare and lodge an annual public report to the Workplace Gender Equality Agency (“WGEA”). The report must address the following gender equality indicators.

• GEI 1 – gender composition of the workforce;

• GEI 2 – gender composition of governing bodies of relevant employers;

• GEI 3 – equal remuneration between women and men;

• GEI 4 – availability and utility of employment terms, conditions and practices relating to flexible working arrangements for employees and to working arrangements supporting employees with family or caring responsibilities; and

• GEI 5 – consultation with employees on issues concerning gender equality in the workplace.

What are the legislative reforms?

The Bill amends the Act to include the following key changes for employers with workforces:

Over 100 employees:

• Until now, WGEA collected gender pay gap data from employers, but has not had the legislative authority to publish the data.  Instead, employers received this information in a confidential report.  Under the new legislation, this gender pay gap information will be publicly reported on the WGEA website.  WGEA will publish the first set of private sector employer gender pay gaps in early 2024 and Commonwealth public sector gender pay gaps from late 2024/early 2025.

• From April 2024, reporting on sexual harassment, harassment on the grounds of sex or discrimination will be mandatory (as an additional gender equality indicator, making a total of six GEIs).

• From April 2024, employers will be required to provide additional workforce data to WGEA on employee age, primary workplace location, CEO and casual manager remuneration.
• From late 2023, CEOs will be required to share certain reports, namely the Executive Summary and Industry Benchmark Report, with all members of their governing body.  The Industry Benchmark Report is a report given by the WGEA to the relevant employer that compares the employer’s gender pay performance to similar relevant employers in respect of the reporting period.

Over 500 employees:

• In addition to the above, from 2024, these organisations will be required to have policies or strategies for each of the six gender equality indicators.

Non-Compliance

Non-compliance can include an employer failing to lodge a public report, giving false or misleading information in a public report or to the WGEA, or failing to improve against the minimum standard.

If an employer fails to comply with the Act, the WGEA can publicly name that employer and details of its non-compliance. However, before doing this, the WGEA must notify the employer of its intention and give the employer 28 days to respond, as well as help it comply with the Act.

Importantly, employers who fail to comply with the Act may not be eligible to compete for Commonwealth contracts, or be eligible for Commonwealth grants or other assistance.

Guidance

To prepare for these upcoming changes, it is recommended that employers with workforces over 100 employees:

• assess whether their organisation has adequate systems in place to accurately report the data and information required by WGEA;

• ensure their organisation understands the proposed reporting requirements to avoid the risk of non-compliance; and

• designate a specific body within the organisation who is responsible for the reporting.

Now is the time for employers to prepare their workplace for these changes.  HR Law is here to assist you in meeting your reporting obligations.  Please contact the team at HR Law to discuss your workplace needs.

Resources

To access the Bill, click here.

To access the Act, click here.