TLA 2 - Equal pay for women and men for work of equal value

26 May 2022

On 13 May 2022, certain amendments to the Labour Code and to the Salary Law no. 847/2002 entered into force, aiming to ensure equal pay between women and men for work of equal value.

Based on the amendments, equal pay for equal work or work of equal value, becomes a fundamental principle in employment relationships, whereas employers are now required to ensure equal pay for equal work or work of equal value.

Thus, employers are required to set up a system that will allow evaluation and classification of positions to establish the pay scale within the organization, regardless of the applicable salary system. Such system must exclude gender discrimination and prevent unjustified differences in salary payments for employees performing equal work and work of equal value.

To assess whether the employees perform work of equal value, the following work-related factors will be considered, including:

  • level of responsibility,
  • qualification and experience,
  • effort and nature of the duties to be performed,
  • work conditions.

If the gender pay gap exceeds 5%, and the employer cannot justify these differences by objective and gender-neutral factors, the employer is required to remedy the situation.

The employee has the right to obtain, upon request, information on the remuneration scale, separated by gender, for categories of employees who perform equal work or work of equal value.

Moreover, employers who are medium and large enterprises* are required to inform periodically, but not less than once a year (at the latest in the first semester of the year following the management year), the employees and / or their representatives about gender pay gap by category of employees and positions.

This information must cover data on the criteria used upon evaluation and classification of positions for establishing salary levels and made available to employees in an easily accessible manner.

The authorities responsible for enforcing and ensure compliance with these provisions are the State Labour Inspectorate and the Council for Preventing and Eliminating Discrimination and Ensuring Equality, which are entitled to request clarifications and additional information from employers regarding gender pay gap and differences between men’s and women’s pay that may not be justified by objective factors.

For other details or questions, do not hesitate to contact us.

*The criteria for defining medium and large enterprises are established in the Law on accounting and financial reporting no. 287/2017.

Source: Official Monitor no. 141-150 dated 13.05.2022.

 

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