Royal Decree 902/2020 of 13 October on remuneration equality between men and women (BOE of 14 October), which will enter into force on 14 April 2021, establishes a new remuneration audit law, with theaim of ensuring transparency and equal pay among workers of a company of different sexes.
Aware of the doubts it generates, at AYCE Laborytax we tell you all about the new remuneration audit law,so that you know all the details and can carry it out when developing the equality plan in your company.
What is a remuneration audit?
A remuneration audit consists of an audit that reviews a company’s remunerationsystem, in a cross-cutting and comprehensive way, with the aim of ensuring equal pay between men and women within a company.
Definition of remuneration audit:
“The remuneration audit is intended to obtain the information necessary to verify whether the company’s remuneration system, in a cross-cutting and comprehensive manner, complies with the effective application of the principle of equality between women and men in terms of remuneration. It should also enable the define of needs to prevent, correct and prevent obstacles and difficulties that may exist or that may arise in order to ensure equal pay, and to ensure the transparency and monitoring of such a remuneration system”.
When conducting a remuneration audit, account must be taken of all aspects that may lead to the wage gap within a company:
- Distribution of staff.
- Levels within a category.
- Antiquity in the company.
- Activity performance.
- Academic level.
- Personal situation.
- Social benefits.
- Extra-industrial remuneration.
In this way, a remuneration audit compares the individual situation of each worker,in order to eliminate the wage gaps in companies and ensure gender equality at the pay level.
You are interested in:
Do you want to know our External Wage Audit service? Come in and find out
New remuneration audit law
The new remuneration audit law is contained in Articles 7 and 8 of Royal Decree 902/2020, and most notably all companies that draw up an equality plan will be required to carry out a remuneration audit.
The mandatory audit of remuneration is linked to the equality plans of the companies.
As established in Article 2.2 of Royal Decree 901/2020, approved on the same date as the Equal Pay Regulation, all undertakings of more than 50 workers have an obligation to make an equality plan.
The validity of the remuneration audit shall be the same as that of the equality plan of which it is a party, except whether a lower audit is established therein.
Obligations to the company when conducting a remuneration audit
- Make a diagnosis of the remuneration situation of the company:
- Evaluation of jobs, taking into account the obligation of equal remuneration for work of equal value, both in relation to the remuneration system and in relation to the promotion system.
- Other factors that may trigger a pay difference, such as potential deficiencies or inequalities in the design or use of conciliation and co-responsibility measures in the company, as well as the promotional difficulties that workers may encounter, will need to be relevant.
- Establish an action plan for the correction of remuneration inequalities:
- All objectives, actions, schedule and people responsible for their implementation and follow-up will have to be collected.
- Having a system of monitoring and implementing improvements from the results obtained.
- Gradual application of this regulation.
- It extends to the negotiating tables of collective agreements the obligation to assess jobs in collective agreements.
Maximum date for compulsory remuneration audits in companies:
- Companies with more than 250 workers: 6 March 2020.
- Companies of between 151 and 250 workers: 7 March 2021.
- Companies between 101 and 150 workers: 7 March 2022.
- Companies of between 50 and 100 workers: 7 March 2023.
In addition, Royal Decree 902/2020 provides that obligation to justify that the pay gap responds to reasons unrelated to the gender of the workers of the undertaking, it has only the scope provided for in Article 28.3 of the Workers’ Statute,without the possibility of ruling out the existence of evidence of discrimination.
In short, as established by the new law on remuneration auditing,all companies that have to draw up an equality plan – those with more than 50 workers – will be obliged to carry out a remuneration audit.
If you are in this situation, contact AYCE Laborytax to develop the equality plan of your company, in which we will include the remuneration audit.
You are interested in:
If your company has more than 50 workers, you’ll need to develop a Men’s-Women’s Remuneration Equality Plan.