The Albanese Government has introduced new gender pay gap legislation that will change how you and your organisation think about People and Culture.
The legislation will significantly increase public accountability and progress pay equity by publishing, for the first time in Australia, your organisation’s gender pay gap.
What’s changing?
Previous reporting focused on industry-level information - which is why your organisation may already be collecting this data.
From 2024, the Workplace Gender Equality Agency (WGEA) will publish gender pay gaps of employers with 100+ workers shifting the responsibility for action from the industry to individual companies. The data will be publicly searchable on WGEA’s website.
When comparable legislation was introduced in similar jurisdictions - intense media scrutiny resulted in the regular publishing of ‘name and shame lists’ as well as significant staff and customer activism.
When are the changes being made?
Public reporting will begin in 2024, based on data reported to March 31, 2023.
There are less than eight weeks remaining in this reporting period to prepare your company’s filing that will feature in the first release of public reporting. You will have the opportunity to provide a statement outlining your actions to address the gender pay gap.
The Bill also requires CEOs to provide certain WGEA reports to their governing body and renames existing “minimum standards” as “gender equality standards” in line with the “increased ambitions” of the measures. Other changes serve to recognise the importance of core gender equality indicators and bring the Act into line with the Sex Discrimination Act and other relevant reforms.
Who needs to comply?
A registered higher education institution that is an employer;
A natural person, or a body or association (whether incorporated or not), being the employer of 100 or more employees in Australia; or
A Commonwealth company that is an employer of 100 or more employees in Australia; or
A Commonwealth entity that is an employer of 100 or more employees in Australia.
(Explanatory Memorandum, p3)
What happens if you don’t comply?
If an employer fails to comply, then WGEA may name the employer in reports to the Minister, in published reports on their website, or in the media.
What does this mean for your business?
These new measures will result in new attention from your employees, customers, stakeholders and shareholders. Government and media will be asking you for a clear picture on how you plan to achieve gender equality in your workplace.
During a time of high employment and skills shortages, your reputation as an employer has never been so valuable. Gender equality in the workplace is not just the responsibility of those who specialise in human resources, it’s an opportunity for the entire organisation to promote gender equality, work together to address the pay gap and build your organisation’s reputation with government and the general public. This now makes it an area of even greater interest for corporate affairs practitioners.
Source - The above is primarily adapted from the Explanatory Memorandum, Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 and Hansard.