Special thanks to co-authors Priscila Kirchhoff* and Tricia Oliveira*.
In July, Brazil passed a new Gender Pay Gap law (effective immediately) that requires companies with more than 100 employees — for the first time — to publish a report on salary transparency and compensation criteria (a ‘Salary Transparency Report’) every six months. The report must be published on company websites and/or on social networks, as well as shared with the Ministry of Labour and Social Security.
When there is failure to comply, severe sanctions have been introduced. And, in a proven case of wage discrimination due to sex, race, ethnicity, origin or age, in addition to the payment of salary differences, Law 14,611/23 establishes that payment of a fine equal to ten times the new monthly salary must be paid to the individual discriminated against (this is doubled in the case of recurrence).
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*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.