This Government Bill was introduced on 6 May 2025 and is progressing through all parliamentary stages under urgency.

The general policy statement in the Bill’s explanatory note includes the following:

“The purpose of this Bill is to achieve a better regulatory framework for parties to a pay equity claim to assess whether there is sex-based undervaluation, by ensuring that there are: a robust process for raising claims; clarity on the appropriateness of comparators to assess sex-based undervaluation; sustainability for employers to meet their obligations; and the right incentives to encourage parties to resolve pay equity claims.

“In 2020, the Equal Pay Act 1972 (the Act) was amended to provide a process for claimants to raise and settle pay equity claims to address undervaluation in remuneration in female-dominated occupations, rather than a court-based claim system.

“The legislative settings introduced in 2020 included a low entry threshold, limited tools for employers to contest broadly-scoped claims, and insufficient requirements for comparator choice and comparison methodology. These settings have resulted in claims progressing through the entry threshold without strong evidence of undervaluation and have made it difficult for parties to attribute differences in remuneration to sex-based undervaluation.

“The proposed changes to the Act will improve the process for raising and resolving a pay equity claim and provide a better framework for assessing whether there is sex-based undervaluation. Changes are being made to ensure that the process is workable and sustainable. There will be a better framework for parties to use to assess whether there is sex-based undervaluation when a pay equity claim is made.

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“All existing claims that have not been finally settled or determined before this Bill comes into force will be discontinued. Claimants can raise a new claim under the amended Act, if they meet the new requirements for raising a claim. Existing pay equity settlements, including those that were treated as settled under the 2020 Amendment Act, will only be able to be re-raised after 10 years.

“All review clauses under existing settlement agreements will become unenforceable.

“This will bring the changes into effect immediately, so that all existing and future claims are considered under the new framework.”

The Bill proposes multiple amendments to the Equal Pay Act 1972 and consequential amendments to the Employment Relations Act 2000 (ss 33 and 161 amended) and the Public Service Act 2020 (ss 82 and 83A amended).

Further information from Parliament, the Minister for Workplace Relations and Safety and the Ministry of Business, Innovation and Employment can be accessed under the entry for the Bill in Employment Law (online ed, Thomson Reuters) at [PPE3] (Current Bills).

Parliament’s current sitting under urgency will also include (among other things) the second reading of the Employment Relations (Pay Deductions for Partial Strikes) Amendment Bill 2024.