Overview News

03. February 2020

Equal Pay Act in force as of July 2020

Companies with more than 100 employees must have carried out the first in-house wage equality analysis by the end of June 2021 at the latest. Trainees are not counted as employees. The Confederation recommends the already developed online tool "Logib" as the method for the analysis and/or will make a free tool available.

Auditing companies or an employee representative body can be commissioned as auditing agencies.

Within one year after the wage equality analysis has been carried out, a report on the findings must be drawn up for the management of the audited company. Companies under private law are obliged to inform their employees in writing of the results of the wage equality analysis no later than one year after completion of the audit. In the case of listed companies, the wage equality analysis must be published in the notes to the annual accounts.

The legislator waives any sanctions with regard to equal pay. If the analysis reveals inequalities, the company is not obliged to make corrections.

The law and the associated ordinances will cease to apply in 2031 due to the sunset clause.

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