Part 4Pay equity claims
Raising pay equity claims
13FMeaning of has merit
A pay equity claim has merit if—
- the claim relates to work that is predominantly performed by female employees; and
- there are reasonable grounds to believe that the work—
- has been historically undervalued for 1 or more of the reasons set out in subsection (2); and
- continues to be subject to systemic sex-based undervaluation, taking into account all relevant matters (including the reasons set out in subsection (3)).
- has been historically undervalued for 1 or more of the reasons set out in subsection (2); and
The reasons for historical undervaluation of work referred to in subsection (1)(b)(i) are as follows:
- the origins and history of the work, including the manner in which wages have been set:
- any social, cultural, or historical factors:
- characterisation of the work as women’s work:
- the nature of the work requires an employee to use skills or qualities that have been—
- generally associated with women; and
- regarded as not requiring monetary compensation.
- generally associated with women; and
The reasons for continued systemic sex-based undervaluation of work referred to in subsection (1)(b)(ii) are—
- features of the relevant labour market, industry, sector, or occupation, including the following:
- a dominant source of funding across the relevant labour market, industry, sector, or occupation:
- a lack of effective bargaining in the relevant labour market, industry, sector, or occupation:
- the market share of the employer as an employer in the relevant labour market:
- a lack of competition from other employers seeking to employ persons in the relevant labour market:
- a lack of power on the part of employees to influence the relevant labour market:
- occupational segregation or segmentation in relation to the work:
- any other features that are prescribed in regulations; and
- a dominant source of funding across the relevant labour market, industry, sector, or occupation:
- failure by the parties to a pay equity claim to properly assess or consider the remuneration that should be paid to properly account for—
- the nature of the work; and
- the levels of responsibility associated with the work; and
- the conditions under which the work is performed; and
- the degree of effort required to perform the work.
- the nature of the work; and
In subsection (3)(a), relevant labour market means that part of the whole labour market that comprises all workers who, as a matter of fact and commercial common sense, are substitutable because the work they perform involves—
- the same or substantially similar skills and responsibilities; and
- experience under the same or substantially similar conditions; and
- the same or substantially similar degrees of effort.
Notes
- Section 13F: replaced, on , by section 11 of the Equal Pay Amendment Act 2025 (2025 No 21).