Sex Discrimination Commissioner Elizabeth Broderick will oversee a national survey to assess the prevalence, nature and consequences of discrimination relating, in particular, to pregnancy at work and return to work after parental leave.
The inquiry will convene a series of roundtable forums with industry and employer groups, unions, workers and other organisations before preparing recommendations to reduce discrimination.
"There is significant anecdotal evidence that women in particular are being demoted, sacked, or having their role or hours unfavourably 'restructured' while on parental leave or on their return from leave," Attorney General Mark Dreyfus said.
It was launched after Gillard reignited a simmering debate about gender by warning voters in a recent speech that women's voices would be banished from decision making if the conservative opposition was elected in September polls.
The comments were followed by Gillard being targeted by a sexist and offensive menu at an opposition party fundraiser and then a radio host was fired after pressing her on air whether her partner Tim Mathieson was gay.
Gillard, Australia's first female leader, said the inquiry would be "pivotal" in assessing the scale of the problem for women in the workplace and what should be done about it.
"Given that I want us to be a nation where (there is) equal opportunity for everyone at every time in their life, I want to get to the bottom of the problem and what the solutions could be."
Despite Gillard attempting to marginalise the opposition by playing the gender card, it appears to have backfired with a poll on Monday showing male voters are deserting her and the ruling Labour Party's popularity continued to slump.
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