UPDATED 12:27pm: It's hoped there'll be more cooperation as two sides gear up for a groundbreaking bid to establish equal pay.

The Supreme Court has cleared the way for the Employment Court to handle a case for aged care workers, which alleges industries have a lower pay rate if the workers are predominantly women.

Service and Food Workers national secretary John Ryall says they hope the decision will bring a change of attitude from employers and the government.

He says previously they've been entrenched on opposite sides of the courtroom, arguing their case.

John Ryall now hopes there's an opportunity to sit down and work something out together.

Labour challenges Govt

Labour's challenging the Government to stay out of whatever the court decides in a landmark equal pay case.

The Supreme Court has cleared the way for the Employment Court to take on a case for aged care workers next year .. with allegations industries have a lower pay rate if the workers are predominantly women.

Labour's spokesperson for Women's Affairs Sue Moroney says National revealed it wasn't a fan of such legislation when it dealt with a similar law in 1990.

She says the Pay Equity Act was put in by Labour, but one of the most acts of the incoming National Government was to repeal it.

Lack of money the problem?

Rest home providers say it's not a question of gender, but a lack of money that leads to low pay rates.

A Supreme Court decision has given the go ahead for the Employment Court to hear allegations that aged care workers are poorly paid, because most of the employees are women.

But Aged Care Association CEO Martin Taylor says any change would put a major burden on the sector.

He says three quarters of the sector would struggle to survive, if pay rates were lifted by even 15 percent.