New Normative Act Published By Ministry Of Labor And Employment On Equal Pay Law

MB
Mayer Brown

Contributor

Mayer Brown is a distinctively global law firm, uniquely positioned to advise the world’s leading companies and financial institutions on their most complex deals and disputes. We have deep experience in high-stakes litigation and complex transactions across industry sectors, including our signature strength, the global financial services industry.
The Ministry of Labor and Employment (MTE) recently published the Normative Instruction No. 6 (IN), to address points that were still controversial in relation to Federal Law No. 12,611/2023. This law
Brazil Employment and HR

The Ministry of Labor and Employment (MTE) recently published the Normative Instruction No. 6 (IN), to address points that were still controversial in relation to Federal Law No. 12,611/2023. This law provides for equal pay, including salary, criteria for women and men, and, until the IN's publication, had been regulated only by Decree No. 11,795/2023 and by MTE Ordinance No. 3,714, of November 24, 2023.

Salary Transparency and Compensation Criteria Reports

Companies with more than 100 employees must publish their Salary Transparency and Remuneration Criteria Reports ("Transparency Reports") twice a year, in March and September.

The Transparency Reports must include information on the distribution of employees by gender, race, and ethnicity, as well as the median and average salary values. The data is extracted by the MTE from eSocial and Portal Emprega Brasil.

The inclusion of data on the salaries of women compared to men will be used to evaluate any gender inequalities ("Labor Audit"). Companies must also provide information on any hiring policies for women, especially black women; individuals with disabilities; those who have reported experiencing domestic violence; female heads of households; and LGBTQIA+ individuals.

Action Plan to Mitigate Unjustified Salary Differences

In addition to publishing Transparency Reports, if the Labor Audit finds unjustified salary differences between women and men, the company will be notified that it must present an Action Plan to Mitigate Unjustified Salary Differences ("Action Plan") within 90 days. The plan must contain:

  • Measures to be adopted with a priority scale; assigned to each
  • Goals, deadlines, and mechanisms for assessing results;
  • Execution timeline;
  • Evaluation of measures, semiannually at a minimum ;
  • The creation of programs for: (a) training managers, supervisors, and employees on the importance of equity between women and men in the labor market; (b) promoting diversity and inclusion in the workplace; and (c) training and preparing women for entry, retention, and advancement in the labor market on equal terms with men.

The Labor Audit will be used to monitor the implementation of the Action Plan , and the auditors may request adjustments or the creation of a new plan if they find the existing one inadequate.

In the preparation and execution of the Action Plan, the participation of representatives from labor unions and employee representatives in workplaces will be guaranteed, as provided in collective bargaining agreements or, in their absence, through an employee committee.

Disclosure and Access to Information

Transparency Reports must be widely disseminated by organizations—on their websites and social media—ensuring the reports are accessible to employees and the general public.

Employers may include explanatory notes in a separate document to justify any salary differences based on Article 461, §2º of the CLT.

Methodology Implemented to Prevent Employee Identification

The methodology for the Transparency Reports has been carefully designed to ensure confidentiality, preventing the identification of employees. Only information involving a minimum of three men and three women will be disclosed, to avoid exposure of an individual's data.

Conclusion

The publication of the IN signals that the MTE will intensify inspections on this matter from now on. Therefore, organizations must pay even more attention to complying with the regulations governing equal pay and to any potential need to resort to the judiciary in case of regulatory overreach by MTE.

The Employment and Benefits practice at Tauil & Chequer Advogados in association with Mayer Brown is available to assist companies with any questions related to this topic.

Additional author: Lucas Figueira Porto

Visit us at mayerbrown.com

Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.

© Copyright 2024. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More