Federal Minister for Women, the Hon Katy Gallagher, has introduced a Bill to the Federal Parliament that, if passed, will require employers with 500 or more employees to set, act upon and achieve defined gender equality targets. If passed, Australia will be the first country in the world to implement this type of gender equality targets scheme.
The Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2024 (Bill) seeks to amend the Workplace Gender Equality Act 2012 (Act) to implement a key recommendation from the Department of Prime Minister and Cabinet's 2021 review (PM&C review) that will require employers to "commit to, achieve and report to WGEA" on gender equality targets. The PM&C review cited the minimum standards in the Act as providing a "low bar" for employers to meet, and the gender equality targets would raise that bar by "bridg[ing] the action gap".
Failure to achieve the targets may impact an employer's ability to obtain government work and result in a public statement from the WGEA.
Proposed new regime
Under the current legislative framework, employers are required to publicly report on their gender equality indicators, but they do not need to set gender equality targets. The Bill proposes that 'designated relevant employers' (employers with 500 or more employees) be required to:
- select specific gender equality targets
- achieve (or make improvement(s) in respect of) the selected gender equality targets. This will be tracked over a three-year 'target cycle'
- publicly report on the progress made in respect of the selected gender equality targets.
The Bill does not set out specific gender equality targets for employers to choose from, nor the rules for selecting those targets. Instead, the Minister for Women will, through legislative instrument, "set targets in relation to specified gender equality indicators and specified target cycles and specify rules for the selection of targets by designated relevant employers in specified target cycles."
Further, the Bill states that these 'rules' may do any of the following:
- establish classes of targets
- require the selection of a specified number of targets
- require the selection of a specified number of targets of a specified class
- require a designated relevant employer to specify the level of improvement needed for the employer to meet the target.
Currently, the Act allows the Workplace Gender Equality Agency (WGEA) to publicly name employers who are non-compliant with their reporting obligations.
The Bill seeks to extend these powers to allow WGEA to publicly name employers who fail to meet their selected gender equality target(s) or are unable to demonstrate an improvement against their baseline data, without reasonable excuse. Further, WGEA may refuse to provide non-compliant employers with a certificate of compliance. This presents a significant challenge when undertaking procurement for services as Australian government agencies and departments factor in the possession of a WGEA certificate of compliance when procuring services.
Potential impact on employers
If passed in its current form, the Bill will immediately impact large employers (with over 500 employees) as it will implement significant compliance changes to their existing obligations under the Act. Employers should closely monitor the progress of the Bill to prepare for these changes.
Similarly, it is prudent for medium-sized employers with expansion plans to monitor the size of their workforce to ensure they understand when and if the new rules will apply to them.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
