Advancing Pay Equity: Brazil’s Law 14.611/2023

Introduction

In a significant move towards gender equality, Brazil enacted Law 14.611 on July 4, 2023, aimed at ensuring pay equity between men and women. This legislation strengthens existing labor laws and introduces new measures to promote fair and equal wages. As businesses adapt to these regulations, understanding the implications of Law 14.611/2023 and how to comply is crucial.

Understanding Law 14.611/2023

Law 14.611/2023 is designed to address wage disparities and promote fairness in the workplace. Key provisions of the law include:

• Equal Pay for Equal Work: Employers are required to ensure that men and women receive equal pay for performing the same work under similar conditions [1].
• Salary Transparency: The law mandates the establishment of salary transparency mechanisms, including the submission of semi-annual salary reports by companies with 100 or more employees [2].
• Increased Inspections: The law calls for increased inspections to monitor compliance with pay equity rules [2].
• Complaint Channels: Specific channels for employees to report wage discrimination have been established [2].
• Penalties for Non-Compliance: Companies failing to comply with the law may face penalties, including fines and the requirement to implement action plans to address pay disparities [2].

Recent Developments

Since the enactment of Law 14.611/2023, Brazil has taken steps to clarify and enforce its provisions. On November 27, 2023, the government issued Federal Decree No. 11.795/2023, which outlines the data companies must provide to the Ministry of Labor to comply with the law [1]. Additionally, Ordinance No. 3.717/2023 specifies the administrative procedures for implementing the law and decree [1].

How Canopy Can Help

Canopy offers comprehensive solutions to help businesses comply with Brazil’s Law 14.611/2023 and promote pay equity:

1. Compliance Framework: Canopy provides a robust framework to help businesses develop and implement policies that comply with Law 14.611/2023. This includes guidelines for regular reviews and updates to ensure ongoing compliance.
2. Wage Analysis Tools: Canopy offers tools to analyze wage data and identify potential disparities. These tools help businesses ensure that their pay practices are fair and aligned with the law’s requirements.
3. Training Programs: Canopy provides training programs to educate employees and managers about the importance of pay equity and the provisions of Law 14.611/2023. This helps create a culture of fairness and compliance within the organization.
4. Continuous Monitoring: Canopy’s solutions include continuous monitoring of pay practices to detect and address any emerging disparities. This proactive approach ensures that businesses remain compliant with Law 14.611/2023 and other evolving regulations.

Conclusion

Brazil’s Law 14.611/2023 represents a significant step towards achieving pay equity in the workplace. As businesses strive to comply with these regulations, Canopy’s comprehensive solutions provide the tools and support needed to ensure fair and transparent pay practices. By partnering with Canopy, businesses can not only comply with the law but also foster a culture of equity and fairness.

[1]: Brazil Equal Pay Law Updates: Official Reporting Guidelines Issued [2]: Brazil: New equal pay law n. 14.611 of 3 June 2023