Pay Equity - The Equal Pay Amendment Act passes into law

Last week the Equal Payment Amendment Act 2020 (the Equal Pay Act) was passed by Parliament with unanimous support. It will come into effect later this year.

The Act simplifies the process for raising and progressing pay equity claims, in summary by providing comparative guidelines between industries largely dominated by women, and the male equivalent in that industry.

The guidelines provide a simplified bargaining process. Employees raising a pay equity claim on the belief that their occupation is undervalued and remunerated on the basis of gender, can use the guidelines for bargaining.

In sectors which are heavily dominated by women, the introduction of the Act will likely result in more claims raised to seek pay equity. These have already been successful in other sectors, most notably in the aged care and support workforce, resulting in settlement with the Government and legislation to significantly increase and create more consistent pay and conditions of workers within the sector.

Further detail about the legislation is available in our earlier articles on the Bill as it progressed through Parliament.[1]

Having led employer responses to the pay equity claim pursued within the mental health sector, our team are well placed to assist clients in respect of any pay equity queries or claims raised. The specialist employment law team at DTI Lawyers are available on 07 282 0174.