Welcome Back to Another HR Alert: The Gender Pay Gap Bill

The Closing the Gender Pay Gap Bill was successfully passed in March 2023, mandating certain Australian employers to disclose the extent of pay disparity within their companies to the public annually.

 

WHO DOES THIS APPLY TO?

 

• These changes apply to businesses with 100+ employees.
• Businesses with 500 or more employees have additional requirements see below.

 

WHEN DOES THIS COME INTO EFFECT?

 

• For private sector businesses with 100 employees or more, the requirement to report their aggregate gender pay gap data to the Workplace Gender Equality Agency (WGEA) comes into effect on 27 February 2024. This information will be made publicly available on the WGEA website.
• Public sector employees are expected to comply with this requirement from late 2024 to early 2025.

 

POTENTIAL CONSEQUENCES OF NOT COMPLYING

 

• Include being publicly named by the WGEA in reports to government ministers or through other channels, such as the media.
• Additionally, there is the risk of exclusion from competing for contracts under the Commonwealth procurement framework and ineligibility for Commonwealth grants or financial assistance.

 

WHAT DO THE NEW REQUIREMENTS ENTAIL?

 

To add to the publication of gender pay gap data for businesses with 100+ employees, those with 500 or more employees face additional obligations. They must have policies or strategies for the following gender equality indicators:

• Workforce gender composition
• Governing body gender composition
• Equal remuneration
• Availability and utility of employment terms and flexible working arrangements, including support for family and carer responsibilities
• Employee consultation on gender equality
• Prevention of sexual harassment, sex-based harassment, and discrimination.

 

WHAT CAN YOU DO TO PREPARE?

 

• Follow the Fair Work Best Practice Guide.
• Embrace transparency:
  • Transparency fosters trust, especially when combined with accountability for addressing issues.
• Inform your employees about the publication of the gender pay gap:
  • Proactively communicating this and directing employees to the published data demonstrates dedication to advancing gender equality in the workplace.
• Highlight any legitimate reasons or nuances behind the data:
  • It’s beneficial to emphasise any valid explanations or complexities associated with the data.

 

HOW HOWARDCO CAN SUPPORT YOU!

 

At Howardco, our mission is to collaborate closely with our clients to achieve optimal outcomes. To this end, we provide the following services:

• In-depth research on current and forthcoming legislative changes and proposals.
• Expert guidance on best practices.
• Customised policy review, drafting, and tailoring to suit your unique business needs.

 

To schedule a chat with our team, contact Howardco today!