The Government is set to introduce the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2024. This Bill would require companies that employ more than 500 employees to set gender equality targets. The Bill includes federal public sector employers.

These changes are as a result of a Review of the Act released in March 2022 which reported that progress on gender equality was too slow, and organisations could do more internally to progress gender equality and meet community expectations.

The Explanatory Memorandum indicates that the scheme is the first of its kind globally and it aims to accelerate gender equality through a targets system to motivate action and embed systemic cultural change in large employers.

These targets and the companies progress would be made publicly available on the Workplace Gender Equality Agency Australia (WGEAA) website.

A failure to comply with the targets may deem a company ineligible for Government contracts. Where a company complies with the scheme, they will be eligible to receive a compliance certificate. Having a compliance certificate would be considered “part of an employer’s eligibility to contract with the Australian Government through procurement processes”.

The Assistant Minister for Women, Kate Thwaites indicated that companies would need to select 3 targets that they want to achieve. In the second reading speech she said:

“The menu of targets that employers can choose from will focus on the gender make-up of boards in the workforce, gender pay gap, flexible working arrangements and support for parents and carers, workplace consultation on gender equality and efforts to prevent and address sexual harassment,”

This list being based on the WGEAA gender quality indicators. Improvement would need to be achieved over a 3-year period and once the 3-year period has concluded, companies will have an opportunity to select another 3 targets.

These requirements are in addition to the current requirements for companies which include:

• For companies with over 100 employees, annual reporting showing how the company is complying with the WGEAA’s gender equality indicators;

 

• For companies with over 500 employees, annual reporting and evidence that the company has policies and strategies that endeavor to improve performance against the WGEAA’s gender equality indicators.

The most recent WGEA Gender Equality Scorecard showed that while the gender pay gap declined by 0.6%, there was still a difference of 21.1%. What is promising is that the scorecard found that 90% of employers have a policy or strategy to support gender equality in the workplace.

Lessons for Employer’s

• Employers should prepare for the new legislation by understanding what new obligations will be imposed should the legislation be passed;
• Employers should ensure they are compliant with the current legislation such as the requirement for some companies to report on WGEAA indicators;
• While not required to, small and medium businesses should understand the different strategies that can be put in place to reduce the gender pay gap. The WGEAA tools and guidelines are useful in assisting companies in meeting gender equality indicators.

If you would like to discuss these or other workplace issues, please contact Andrew Bland or call 02 9412 3077.