ELA EU Pay Directive

PORTUGAL

Legislation Addressing the EU Pay Directive

  • Succinct summary of the legislation:

    No 


    i. There is no available information on when to expect transposing legislation to be published, and no indication on what such legislation will cover.


    ii. There has been no indication from the legislature as to whether the transposing legislation will implement the Directive exactly as written (verbatim), or whether it will introduce additional or stricter requirements. Based on other transposition experiences we would expect it to be quite close to the wording of the Directive.


  • Draft legislation implementation:


    There is no partial transposition although there are local laws on gender pay equality (Law no. 60/2018 of 21 August (on equal pay for equal work or work of equal value)). 


    1.1 Under existing Portuguese law, employers must make the following information available:


    1. Clear description of the remuneration components and criteria


     Employees must be able to understand how their total pay is composed (basic pay and all regular and periodic benefits in cash or in kind).

     Employers must base pay on objective, gender neutral criteria (such as qualifications, responsibilities, effort, working conditions, performance, productivity, seniority, etc.), and these criteria must be identifiable and explainable to workers.

     In practice, this should require a transparent pay policy and a job evaluation system that allows employees to see which factors determine their pay level and progression, and to verify that the same criteria are applied to women and men performing equal work or work of equal value.


  • How will the Directive's requirements interact with or replace existing national obligations?

    2. Information on pay levels and pay differences within the undertaking


     Employees and their representatives are granted the right to access information allowing them to identify differences in pay between women and men for equal work or work of equal value.

     Law 60/2018 requires the authorities to publish sectoral barometers and company level pay balance reports, showing statistical differences in remuneration between women and men.

     When significant pay differences are identified, employers may be required to present a plan to assess and correct those differences, which must be based on an analysis of the pay components and criteria used in the company. Employees and/or their representatives must be informed of the existence and content of such plans.


  • When will transposing legislation be published and what to expect:


    3. Information enabling employees to challenge discriminatory pay:


     Employees who suspect pay discrimination should be able to obtain sufficient information about the applicable pay criteria and pay levels to substantiate a claim of discrimination.

     If an employee alleges discriminatory pay and the employer does not have or does not present a transparent pay policy, the law establishes a presumption of pay discrimination, shifting the burden of proof to the employer.

     

    4. Non personal but disaggregated information to representatives:


     Information provided to employees’ representatives (and, in some cases, to trade unions and competent authorities) must be disaggregated by sex so that gender based pay differences can be identified, but it must not include nominative (identifying) data about individual employees, except where the law expressly allows it (for example, in proceedings before competent authorities or courts).


    5. Information on measures and policies to promote equal pay


     Employers must inform employees and their representatives about policies and measures adopted to promote equal pay, including any internal procedures for job evaluation, pay setting and pay progression, and any corrective measures taken following the identification of unjustified pay gaps under Law 60/2018.


Application

Recruitment and job applicants

Transparency of pay and pay progression policy

Individual rights to pay information

A worker is entitled to request and receive information on:


  • their individual pay level; and
  • the average pay levels broken down by sex for workers performing the same work as them or work of equal value to theirs

Prohibitions on workers disclosing pay information

Contractual clauses that prevent employees from disclosing information about their pay are prohibited under the Directive. 

Gender pay gap reporting

National Workforce Thresholds

Dealing with Gaps & Joint Pay Assessments

Data Protection

Breach of pay transparency and pay gap reporting requirements

Rights to equal pay – rights of action

Workers Representatives

Member State Support

Other/Additional