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Key employment issues to be aware of internationally

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Key employment issues to be aware of internationally  

Publication date: 28.08.2024With the Pay Transparency Directive 2023/970/EU (the EU Directive), the European legislators are once again trying to reduce the pay gap between men and women. In 2022, the unadjusted “gender pay gap” in the EU was 12.7%. At country level, the gap was the lowest in Luxembourg (-0.7%) and the highest in Estonia (23%). In most countries it was between 10% and 15%. (Gender pay gap statistics - Statistics Explained (europa. eu)) In Portugal, specific legislation to mitigate the gender pay gap has been in place since 2018. Under the legislation, companies must maintain a transparent salary policy and are obliged to address any unjustified gender pay gaps, under threat of financial penalty. They might also be obliged to present an evaluation and a corrective plan to the labour authorities if they are suspected of gender pay gaps. The social partners (employers' representatives) are currently being consulted to evaluate the existing legislation, and it is expected that some changes arising from the EU Directive will be included. Countries outside the EU are not obliged to apply the EU Directive. However, some of them have existing legislation prohibiting unequal pay based on gender. In Monaco, companies that fail to comply with the legislation are liable to criminal penalties (from 2,250 to 9,000 euros per offence, which may be multiplied by five in the case of a legal person), and it is specified that these penalties are independent of any compensation and damages that the offences may give rise to. The Monegasque legislation does not oblige employers to monitor the gaps, to be transparent, to publish figures, etc., as is the case in EU countries. Nevertheless, the gender pay gap is still an important issue in Monaco. The National Council (le “Conseil National”) is currently considering more stringent measures, including a measurement index. The new EU Directive, which has been created in view of gap, means companies will have to take considerable action and, therefore, the onus is being placed on employers. In the following FAQ, we  have summarised the most important data, and facts and provided initial courses of action. Additionally, we discuss the key aspects of the UK’s gender pay gap reporting regime which is not as detailed as the regime contained in the EU Directive. As a result of leaving the EU, the UK is not required to transpose the EU Directive. However, in 2017 The Equality Act (Gender Pay Gap Information) Regulations 2017 (the Regulations) introduced an obligation on UK private sector employers with more than 250 employees to collect and publish their gender pay gap figures on an annual basis. Companies operating across the EU with UK sites may choose to “level up” and adopt the more robust measures set out in the EU Directive within their UK operations and apply a consistent approach.

Key employment issues to be aware of internationally

Key employment law developments and expected trends for 2024

Key employment issues to be aware of internationally

Key employment issues to be aware of internationally