Closing the gender pay gap – changes to mandatory reporting requirements
Posted on June 08, 2023
On 30 March 2023, Parliament passed the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act 2023 (Act), which is aimed at accelerating employer action to close the gender pay gap in Australia.
The key reform is changes to the mandatory reporting requirements for employers, which requires organisations with over 100 employees to provide data on their gender pay gaps to the Workplace Gender Equality Agency (WGEA).
The Act and its respective legislative instruments are as a result of a report published by WGEA in March 2022 which reviewed the Workplace Gender Equality Act 2012 (WGE Act) and fulfils 6 of the 10 recommendations made in that report. The report found that progress on workplace gender equality in Australia has stalled in recent years.
What are the key changes?
The reforms apply to organisations already required to report annually to WGEA which include registered higher education providers that are employers and private sector employers and from 2023, Commonwealth public sector organisations with 100 or more employees.
Collection of more detailed information to fill knowledge gaps
The changes will see the collection of more detailed information to fill knowledge gaps, as current existing gaps in the WGEA database mean the true state of gender inequality across Australian workplaces is not being measured. From April 2024, employers will be required to report workforce data on:
- Employee age (year of birth)
- Primary workplace location
- CEO and casual manager remuneration
Mandatory reporting of this data means that data will be provided by all employers, rather than just a smaller sample of those who choose to provide this data voluntarily.
Reporting on sex- based harassment, harassment on the ground of sex or discrimination
The changes will see an expansion on reporting requirements on prevention and response to sexual harassment, harassment on the ground of sex or discrimination in the workplace.
To prepare employers who do not currently collect this data, the new reporting questions in 2023 are to be asked on a voluntary basis and will be mandatory from April 2024.
From April 2024 employers will be required to provide:
- the provisions set out in any policy/strategy, including accountabilities for:
- preventing and responding;
- the provision of training, its frequency, and its content;
- the disclosure processes and management of disclosures;
- leadership statements or communication to demonstrate commitment to prevention and response;
- information about sexual harassment risk management
- information about the prevalence data organisations currently collect
- supports available for staff.
Mandatory sharing of reports to governing body
Currently, WGEA provides confidential reports to each employer’s CEO on their gender pay gap result at the end of the reporting period. The changes will require CEO’s of employers to provide their WGEA Executive Summary and Industry Benchmark reports to their board or governing body from late 2023.
Gender Equality Indicator policies for large organisations
Large organisations (500 or more employees) will be required to have policies or strategies for each of the six gender equality indicators from April 2024.
The six gender equality indicators are:
- 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
- GEI 5 – consultation with employees on issues concerning gender equality in the workplace
- GEI 6 – sexual harassment, harassment on the ground of sex or discrimination.
Publishing of gender pay gaps
Under the new changes, in addition to publishing the gender pay gap at national, industry and occupational level, WGEA will publish employer gender pay gaps. WGEA will publish the first set of private sector employer gender pay gaps in early 2024 covering the 2022-2023 reporting period.
What should employers be doing?
To prepare for the new reporting obligations in 2024 employers should:
- identify which reporting obligations apply to their organisation and ensure relevant personnel understand these requirements;
- review their systems for collecting and reporting information and make any necessary adjustments;
- review their current policies and strategies aimed at addressing harassment, equity, diversity and inclusion;
- take targeted action to minimise any gender pay gaps in your organisation.
Urgent reminder about pay secrecy clauses
The recent Secure Jobs Better Pay reform seeks to promote equality objectives for employees, please refer to our article here about these changes. From 7 June 2023, pay secrecy terms cannot be included in employment contracts at all. Employers who enter into employment contracts that have pay secrecy terms in them could face penalties.
Please contact our workplace relations team if you require assistance.
