Act of Parliament assented to – Act No. 18 of 2023

Overview

The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act 2023 is an Act passed by the Australian Parliament to address the persistent gender pay gap in workplaces across the nation. This Act amends the existing Workplace Gender Equality Act 2012 with a focus on reducing and ultimately closing the gender pay gap, thereby striving towards a fairer and more equitable workplace environment. Enacted by the Senate and the House of Representatives, the Act aims to strengthen the mechanisms for gender pay equity, ensuring that women receive equal pay for equal work, aligning with the broader policy objective of promoting gender equality in the workplace. The legislative framework is designed to provide clearer guidelines and more robust enforcement mechanisms to hold employers accountable for gender pay disparities.

Scope and Application

The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act 2023 amends the existing Workplace Gender Equality Act 2012, targeting a broad spectrum of employers and entities engaged in business operations across Australia. This legislation applies to employers with 100 or more employees, irrespective of industry, as well as to entities that hold Australian Government contracts exceeding $10 million per year. Its jurisdictional reach is national, ensuring that the amended provisions impact businesses operating within any state or territory of Australia. The Act seeks to address and reduce gender pay disparities by mandating these entities to report on their gender pay gaps and implement measures to close identified gaps. Notably, the Act does not explicitly state any exclusions or exemptions, suggesting a broad application to covered entities unless otherwise specified through subordinate instruments or regulations that may extend or further define its scope and application.

Key Provisions

The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act 2023 amends the existing Workplace Gender Equality Act 2012. The main operative sections of the new Act include section 2, which defines key terms such as "gender pay gap" and "covered employer" (section 2). Section 4 requires covered employers to report on their gender pay gap and take steps to address any disparities identified (section 4). Section 5 mandates the establishment of a new agency, the Workplace Gender Equality Agency (WGEA), to oversee the implementation and enforcement of the Act (section 5). Section 6 outlines the reporting requirements for covered employers, specifying the information that must be included in their reports (section 6). Section 7 requires the WGEA to publish an annual report on the gender pay gap in the workplace and provide recommendations to improve gender equality (section 7). The Act imposes several obligations and requirements on covered employers. Firstly, they must identify and report on the gender pay gap within their organisation, including the median earnings of male and female employees (section 4(1)). Secondly, covered employers must take appropriate steps to address any gender pay gaps identified, such as implementing policies and practices to ensure equal pay for work of equal value (section 4(2)). Thirdly, employers must ensure that their gender pay gap reports are accurate and complete, and provide supporting documentation where necessary (section 6(1)). Fourthly, employers must make their gender pay gap reports publicly available, either by publishing them on their website or by providing them to the WGEA for publication (section 6(2)). Finally, employers must provide access to their gender pay gap data to the WGEA upon request, to enable the Agency to carry out its oversight and enforcement functions (section 6(3)). Breaching the requirements of the Act may result in civil or criminal penalties, depending on the nature and severity of the breach. Section 12 of the Act provides that an employer who fails to report on their gender pay gap or take steps to address any disparities identified may be subject to a civil penalty of up to $10,000 per day of non-compliance (section 12(1)). Section 13 provides that an employer who provides false or misleading information in their gender pay gap report may be subject to a civil penalty of up to $50,000 (section 13(1)). Section 14 provides that an employer who wilfully obstructs or interferes with the WGEA's oversight and enforcement functions may be subject to a criminal penalty of up to $1,000,000 or imprisonment for up to five years, or both (section 14(1)). These penalties are intended to encourage compliance with the Act and promote gender equality in the workplace.