27 de November de 2023

Published Decree regulating the new Law on Equal Pay bringing more detail on the company’s obligations about the matter

Decree No. 11,795/2023 was published on November 23, 2023 to regulate two obligations brought by Law No. 14,611/2023, which governs equal pay for equal work and compensation criteria between women and men.

The first obligation is the publication on the company’s websites, social medias and other similar networks, in March and October of each year, of the report of salary transparency and remuneration criteria by companies that have 100 (one hundred) or more employees, having the Decree listed some minimum information that the transparency report must contain, such as positions, salaries and amounts of some other labor rights paid to employees (such as the 13th salary,  overtime and commissions) .

The second obligation regulated by the Decree is the preparation of an action plan by companies in which the Ministry of Labor and Employment identifies conditions of salary inequality between female and male employees in the transparency report.

The Decree establishes that this plan must be prepared by the companies within 90 (ninety) days after notification from the Ministry of Labor and Employment and bring the measures that will be adopted to mitigate salary inequality, their goals and deadlines. The Decree also provides that the action plan must establish the creation of training programs for leaders and employees about pay equity between men and women, the promotion of diversity and inclusion in the workplace, and training women to enter and advance in the labor market. In addition, the Decree determines that the participation of representatives of unions and of the employees in the preparation and implementation of the action plan must be guaranteed.

Additional regulation is expected in relation to this matter, given that the Decree establishes that it will be up to the Ministry of Labor and Employment to determine what other information must be contained in the transparency reports, as well as to provide the procedure and electronic system for the reports to be sent by the companies.  

In this regard, a preliminary review of the compensation practices currently adopted by the companies may be a preventive measure while other rules related to the matter are not published by the Ministry of Labor and Employment.

Our labor team is available to clarify any doubts and discuss aspects related to this topic.

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