EQUALITY PLAN

In Denemax Consulting we offer the service of Equality Consulting adapted to each sector, so that our clients comply with the obligation to implement an Equality Plan, regulated in the Royal Decree 901/2020, of October 13. We enable companies to incorporate equality in their policies and work organization, with respect to the areas required by the Organic Law 3/2007, of March 22, 2007, which will result in long-term investment and the elimination of any form of discrimination.

In view of the growing concern in certain professional areas regarding the existing disparity of opportunities, new regulations were approved to help guarantee full equality between the sexes.

In October 2020, the equality regulations were updated with the publication of two new regulations (Royal Decree 901/2020 and Royal Decree 902/2020 of October 13), which regulate the development of equality plans and salary audits.

Specifically, their main objective is to guarantee equal pay, the effectiveness of equality plans and their registration with pay information broken down and averaged by professional classification and for jobs of equal value.

What does the gender equality law state?

The equality law establishes clear guidelines on the equality of workers regardless of their sex. The main objective of the obligation to create and implement equality plans in companies is to ensure effective equality between men and women within national companies.

In this way, the government is trying to fight against the gender inequality that is evident in Spanish companies. But it also intends to work towards prevention and avoid gender-based wage differences.

It should be noted that the regulations do not only address the gender pay gap. Equality plans must also include other matters as a minimum content, among which the following can be pointed out:

Prevention of sexual harassment in the workplace.

Implementation of codes of conduct.

Implementation of codes of conduct.

Likewise, prior to the formalization of the equality plan, an analysis and diagnosis of the needs that may be necessary to work in the company must be carried out. This diagnosis must be carried out within the Negotiating Committee. This commission will be formed by representatives of the workers and the company and will be in charge of carrying out the implementation of the plan, as well as of monitoring and evaluating the evolution and implementation of the equality plan in the company.

OBLIGATIONS

 

As of March 8, 2022, all companies with more than 50 employees must implement an Equality Plan and apply measures leading to the elimination of discrimination based on sex. These measures must be adapted and based on an analysis of the actual situation of the company. Those companies whose applicable collective bargaining agreement so determines are also obliged to do so.

The penalties of the Equality Plan are also included in the Royal Legislative Decree 5/2000, of August 4, which approves the revised text of the Law on Infractions and Penalties in the Social Order (LISOS), which establishes economic penalties of up to 225,018 €.

Notwithstanding, any non-obligated company may also implement an Equality Plan on a voluntary basis, opt for a public recognition badge and highlight its Corporate Social Responsibility.

Penalties arising from minimum content

To avoid the fines and sanctions mentioned above, Article 7 of Royal Decree 901/2020 establishes the minimum content of the Equality Plans, which must be elaborated and negotiated with the legal representation of the workers. The minimum content refers to:

Selection and hiring process.

Professional classification.

Training.

Professional promotion.

Female underrepresentation.

Co-responsible exercise of personal, family and work life rights.

Working conditions, including the salary audit between women and men in accordance with the provisions of Royal Decree 902/2020, of October 13, on equal pay for women and men.

Remuneration.

Prevention of sexual and gender-based harassment.

It should be recalled that equality plans must be subject to negotiation by the Negotiating Committee, which must be made up of the following: the union or trade union representation of the company’s personnel (RLT), under the same terms provided for the negotiation of collective bargaining agreements.

Salary record and related penalties

The Wage Register or Pay Register is regulated by Royal Decree 902/2020 on equal pay for men and women and is mandatory for all companies as of April 2021, regardless of the number of employees.

The purpose of the Salary Register, as well as other Spanish and European regulations, is to ensure that the right to equal pay is real and effective between men and women.

This regulation includes the obligation that all companies, regardless of their size, must have a salary register for all their employees. The salary register must include all the information on the salaries of management personnel and senior executives. Specifically, the following must be recorded:

Content: the average values of salaries, salary supplements and non-wage payments of the workforce, broken down by gender and distributed by professional groups, professional categories or jobs of equal or equal value.

Indicators: the arithmetic mean and median of what is actually received for each of these items in each professional group, professional category, level, position or any other applicable classification system must be established in the compensation record of each company, appropriately broken down by sex.

The principle of transparency of remuneration will be applied through the instruments regulated in the Royal Decree: the remuneration records, the remuneration audit, the job evaluation system and the employees’ right to information.

Penalties for not having a Remuneration Register

It constitutes a serious infringement in the event of non-compliance with the obligations regarding equality plans and measures established in Organic Law 3/2007, of March 22, 2007, for the effective equality of women and men, the Workers’ Statute or the applicable collective bargaining agreement; therefore, the company may be sanctioned with an amount of 751.00 € to 7,500.00 €, depending on the graduation made by the labor inspection.

 

Remuneration Audit

The remuneration or salary audit consists of the collection and analysis of information related to the salary of a company’s employees, with the aim of identifying whether the entity’s remuneration system, in a transversal and comprehensive manner, complies with the effective application of the principle of equality between women and men in terms of remuneration.

The remuneration audit should contain:

Diagnosis of the remuneration situation
    • The evaluation of jobs by analytical methods, already mentioned above.
      The relevance of other factors triggering the pay gap, as well as possible deficiencies or inequalities that could be detected.
Action plan for the correction of pay inequalities
    • Establishment of a plan, including objectives, specific actions, timetable and person(s) responsible for its implementation and follow-up. The action plan must include a system for monitoring and implementing improvements based on the results obtained.

In accordance with Royal Decree 902/2020 of October 13, 2020, companies that prepare an equality plan must include a compensation audit.

BENEFITS OF IMPLEMENTING AN EQUALITY PLAN

Adding value to the company and attracting talent

Optimizes productivity and human resources

Improves the work environment and the service offered

Prevents conflicts and risks

WHAT DISTINGUISHES OUR SERVICE

Adaptation to customer needs

Personalized and sector-specific Equality Plan

Quality service and rigorous regulatory compliance

Transparent communication

SERVICE WE OFFER

  • Comprehensive management of the process and preparation of documentation (Equality Plan; Harassment Protocol; Code of Ethics and Best Practices; Inclusive Language Guide).
  • Training
  • Presentation of subsidies and awards to companies committed to equality.
  • Constant accompaniment by a person specialized in equality and mediation.
  • Orientation to objectives

ACTIONS

  • Creation of the Negotiating Committee
  • Complete and updated diagnosis
  • Remuneration Audit
  • Personalized design of the Equality Plan
  • Registration with the Labor Authority
  • Periodic follow-up audits
  • Impact evaluations

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