On 26 April 2025, the Fair Work Commission (the Commission) published its first and long-awaited decision in its Gender Undervaluation – Priority Awards Review (the Review). This article provides an overview of the circumstances that gave rise to “gender undervaluation” becoming the focal point of consideration in the Review.
Following the suite of “pay equity” reforms that arose from the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth), the Commission is required to take into account the need to achieve gender equality in setting modern award minimum rates of pay. That requirement includes ensuring equal remuneration for work of equal or comparable value and eliminating gender-based undervaluation of work.
Since that time, the Commission has considered the impact of “gender undervaluation” on modern awards as part of the Aged Care Work Value Case and in research projects connected to the Annual Wage Review 2023-24.
Significantly, the Stage 3 – Aged Care Decision recognised a “wider context of gender assumptions” had pervaded the federal industrial relations system since its inception in the early 20th century. In short, the detailed history set out in that decision supported a finding that the minimum award rates in female-dominated industries were likely impacted by historical gender-based undervaluation.
On 3 June 2024, the Annual Wage Review 2023-24 Decision determined that certain modern awards merited priority consideration as to whether they had been the subject of gender undervaluation. The following female-dominated occupations were identified as “priority areas”:
Further, having regard to the observations of the Commission in the Aged Care Work Value Case and Annual Wage Review Decision 2023-24, the Commission considered it probable that the award minimum rates for each of the identified classifications was impacted by gender undervaluation, such that the award minimum rates do not reflect the true value of the work.
Notwithstanding those observations, in order to increase award wages outside of an annual wage review, the Commission must be satisfied that any proposed increase to award wages is justified by “work value reasons” and that the variation is necessary to give effect to both the modern awards objective and minimum wages objective.
The Commission indicated it would shortly initiate proceedings.
The Review was formally initiated by the Commission on 7 June 2024. The purpose of the Review was to determine whether the classifications in the “priority awards” had been subject to “gender-based undervaluation”, such that minimum award wages should be increased on work value grounds.
Here are the “priority awards”:
Throughout the Review, interested parties on behalf of both employers and employees provided assistance to the Commission in the form of evidence and submissions. That assistance culminated with a three-week hearing that took place between 2-20 December 2024.
On 16 April 2025, the Commission published its first decision in the Review. In that decision, the Commission determined that the following award classifications had been subject to gender undervaluation:
Australian Business Lawyers & Advisors (ABLA) will be participating in the next stage of the proceeding on behalf of multiple employer interests including Business NSW, Australian Business Industrial, Australian Childcare Alliance, Ageing Australia, and National Disability Services.
Should any ABLA clients or members of the identified employer associations have any questions or concerns in relation to the Review, please feel free to contact us at info@ablawyers.com.au or 1300 565 846.
Stay Informed
Subscribe to our mailing list to get the latest news, webinar invites, & more.
All fields are required
