Have over 100 employees? New legislation (Workplace Gender Equality Amendment) what does this mean for your business?

On March 30, 2023, the Australian government passed the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023, which aims to reduce the gender pay gap in Australia. The Bill introduces new reporting requirements for employers and sets out new measures to ensure gender pay equity. In this article, I will explore how this new legislation will affect employers in Australia.

Background

The gender pay gap is a persistent issue in Australia, with women earning on average 14.0% less than men in full-time employment, according to the Workplace Gender Equality Agency. This gap is even wider for women from diverse backgrounds, with Indigenous women earning 24.0% less and women with disabilities earning 22.4% less than men in full-time employment.

The Australian government has been taking steps to address the gender pay gap, including the introduction of the Workplace Gender Equality Act 2012, which requires certain employers to report on their gender equality indicators. However, the Act had been criticised for not doing enough to address the issue, leading to the introduction of the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023.

Reporting Requirements

Under the new legislation, all employers with more than 100 employees will be required to report on their gender pay gap annually. This report will need to include the following information:

• The overall gender pay gap within the organisation
• The gender pay gap for managers and non-managers separately
• The gender pay gap for full-time, part-time and casual employees separately
• The percentage of employees who receive bonuses and the gender breakdown of those employees
• The gender breakdown of employees in different job classifications

Employers will also need to provide an explanation of any gender pay gaps identified and outline any actions they plan to take to address these gaps. This information will be publicly available on the Workplace Gender Equality Agency's website.

Impact on Employers

The new reporting requirements will have a significant impact on employers in Australia. They will need to collect and analyse data on their workforce to identify any gender pay gaps, which can be a time-consuming process. Employers will also need to develop action plans to address any gaps identified, which may involve changes to recruitment, promotion, and pay practices.

However, the new reporting requirements also present an opportunity for employers to improve their gender equality practices. By identifying and addressing gender pay gaps, employers can create a more equitable and inclusive workplace culture, which can improve employee morale and retention.

Legal Consequences

Employers who fail to comply with the new reporting requirements may face legal consequences. The Workplace Gender Equality Agency has the power to investigate employers who fail to provide accurate and timely reports or who fail to take action to address any gender pay gaps identified. This could result in fines or legal action.

Employers who fail to address gender pay gaps could also face reputational damage. With the information publicly available on the Workplace Gender Equality Agency's website, employers who have significant gender pay gaps could face criticism from employees, customers, and the media. (In addition to making recruitment more difficult - already a problem for so many employers!!!)

Undoubtedly this will be a learning process for many employers, and particularly for employers in the smaller range – this will be challenging. That’s why it’s important to ensure that you understand your responsibilities before the new legislation changes are enforced.

The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 is a significant step towards addressing the gender pay gap in Australia. While the new reporting requirements may be challenging for employers, they present an opportunity for employers to create a more equitable and inclusive workplace culture. Employers who fail to comply with the new legislation may face legal and reputational consequences, highlighting the importance of taking action to address gender pay gaps.?Candidates will also be more likely to “vote with their feet” and have a look at how an organisation is performing under these measures before accepting an offer.