In Australia, employers have to report gender pay differences. This article explains.
In Australia, the Workplace Gender Equality Act 2012 (Cth) (Act) requires non-public sector employers with 100 or more employees (or corporate structures that employ 100 or more people across all entities within the structure) to submit a report to the Workplace Gender Equality Agency (WGEA) each year. Compliance reporting is completed through an online portal.
Employers are required to complete a questionnaire addressing four gender equality indicators, one of which is action on gender equality and contains questions relating to gender pay gaps. Employers with 500 or more employees must meet the minimum standard of having a policy or strategy in respect of at least one of four of the gender equality indicators specified in the Workplace Gender Equality (Minimum Standards) Instrument 2014 (Cth), one of which is action on gender equality and requires the inclusion of gender pay equity objectives within a formal remuneration policy or strategy.
Employers are also required to submit a workplace profile reporting headcount as at an identified date within the reporting period, along with the gender, employment status, occupational category (including identification of graduates or apprentices), manager category, and annualised full-time equivalent base salary and total remuneration in respect of each (non-identified) employee.
Finally, employers must also submit workplace management statistics on employee movement within the reporting period, which includes data relating to employee appointments, promotions, resignations and parental leave.
A version of the report containing the responses to the questionnaire and the aggregated data (excluding remuneration data) is made publicly available.
If relevant employers do not submit the report on time and meet the approval, notification and access requirements they are considered non-compliant. Employers with 500 or more employers who do not meet the minimum standards and do not improve within the following two reporting periods are also non-compliant. Non-compliant employers may be named in a report to the relevant Minister of Parliament or named publically by electronic or other means, may not be eligible to tender for contracts under Commonwealth and some state procurement frameworks and may not be eligible for some Commonwealth grants or other financial help.
WGEA has also recently introduced a trial voluntary reporting scheme for public sector employers, which is modelled off the compliance reporting scheme.
The Fair Work Act 2009 (Cth) provides that the Fair Work Commission may make an equal remuneration order requiring certain employees be provided with equal remuneration for work of equal or comparable value. An application for such an order may be made by an affected employee, a registered union entitled to represent an affected employee or the Sex Discrimination Commissioner. An employer that contravenes an equal remuneration order may be liable for penalties, compensation or other remedies.
Federal and State anti-discrimination laws make it unlawful for an employer to discriminate on the grounds of sex in regards to the terms and conditions of employment provided to employees (which includes pay and other benefits).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
