Law 14,611, of July 2023, and equal pay

Law No. 14,611 was published, bringing a new angle to wage equality and remuneration criteria between women and men who perform work of equal value or perform the same function, as well as amending the Consolidation of Labor Laws (CLT), which now provides for a fine of 10 times the amount of the new salary owed by the employer to the discriminated employee, and increased to twice as much, in case of recurrence, without prejudice to other legal sanctions.

In addition, the same law determines the semi-annual publication of reports on salary transparency and remuneration criteria by legal entities governed by private law with 100 or more employees, observing the protection of personal data (General Law for the Protection of Personal Data), under penalty of administrative fine whose value will correspond to up to 3% (three percent) of the employer’s payroll, limited to 100 minimum wages – something close to R$ 132,000 in 2023. And, moreover, specific channels should be made available for discrimination complaints wages by employers.

Once wage inequality between people of different genders has been identified, the company must present and implement an action plan to mitigate the difference, with goals and deadlines, ensuring the participation of representatives of unions and employee representatives in the workplace.

An Executive Power act will establish a protocol against salary discrimination and remuneration criteria between women and men, which should contribute to the increase and direction of campaigns and measures for oversight of this legal aspect.

Although discrimination in the workplace has been prohibited for a long time, this new legislation will undoubtedly bring greater protection and bring companies closer to the best ESG practices[i], which are increasingly desirable by companies, customers, consumers, in short , by society as a whole.

[i] ESG (“Environmental, Social and Governance”): English term that, in Portuguese, means: Environmental, Social and Governance.

Related publications

TJSP rules out ITCMD on inheritances and donations from abroad

In an article for Monitor Mercantil, Carolina Pereira Rezende and Samantha Teresa Berard Jorge comment on the recent decisions of the TJSP that applied the STF’s understanding of Theme 825 to rule out the collection of ITCMD on inheritances and donations from abroad. “As a reminder, Theme 825, judged under general repercussion by the Federal Supreme Court, defined that states are unable to collect ITCMD without the intervention of a Complementary Law, when assets, inheritances, donors or deceased persons are located abroad,” they add. Read…

Fact-checking STJ ruling does not impose taxes on individual income tax refunds

Coordinator Gustavo de Toledo Degelo commented to Reuters on the STJ decision that upheld the levying of PIS and COFINS on the corrected amounts of taxes returned to taxpayers. “It was already an understanding unfavorable to the taxpayer and favorable to the tax authorities that the STJ decided to unify and standardize in order to leave no doubt. The STJ maintained its understanding and now other judges must apply this STJ decision: PIS and Cofins are levied on the Selic portion of the amounts returned…

11 tax’s key Issues for multinationals and Brazilian companies

Briganti Advogados, as a renowned Tax Law office and international operations, supports the search for the best tax efficiency for Brazilian and foreign companies that run trades across various jurisdictions. This action seeks to plan the beginning of the business, whether it is the purchase and sale, distribution, eventual permanent investment, or the organization of an existing business structure that, due to some characteristics of the countries’ legislation involved, does not reach the best tax efficiency.  In our daily tax consulting practice, it is common…