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Brazil: New law on equal pay for women and men

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In brief

On 3 July 2023, the Brazilian president sanctioned Law n. 14,611/2023, which aims to ensure equal payment for women and men who perform the same activities. The new regulation also creates greater sanctions for employers.

In more detail

Among other new provisions, the new law amends Article 461 of the Labor Code to expressly provide for mandatory equal payment and remuneration criteria for women and men who perform the same work or work of equal value.

In case of discrimination on the basis of gender, race, ethnicity, origin or age, in addition to salary differences, the employer will be subject to a fine of 10 times the new monthly salary owed by the employer (doubled in case of recurrence), plus a possible indemnification for moral damages. This fine represents a substantial increase over what was previously provided for in the Labor Code, which was limited to 50% of the maximum social security annual pension.

Companies with 100 or more employees are required to publish biannual pay transparency and remuneration criteria reports, including data on the proportion of women and men in management roles.

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Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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Author

Leticia Ribeiro C. de Figueiredo joined the Firm in 1998, as a corporate trainee, and became partner in 2013. Until July 2003, she was primarily involved in M&A and Corporate Law, with experience in national and international M&A projects and corporate restructurings. From July 2003 on, she has been working exclusively in the Labor Law practice group.
She has a wide breadth of experience with strategic litigation cases and relevant consultancy in individual and collective matters (i.e. restructuring, equity pay, PDVs – voluntary resignation program, PLRs – participation in profits or results, alteration of compensation plans and benefits), including national and international projects. Additionally, she works with collective bargaining agreements.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Author

Clarissa Lehmen joined the Firm in 2014. She integrates the employment & compensation practice group, with focus on employment advisory, assisting companies in strategic matters. Clarissa has a wide breadth of experience in strategic matters, including defining and implementing strategies for labor matters relating to C-level executives, benefits harmonization, expatriation, outsourcing, due diligence audits related to Mergers & Acquisitions, retention schemes, Stock Options and negotiations with labor unions.

Author

Priscila Kirchhoff is a Partner from Trench, Rossi e Watanabe Advogados, Sao Paulo office.
Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Author

Tricia Oliveira is a partner at Trench Rossi Watanabe in São Paulo. Her practice focuses on employment litigation – judicial and administrative. Ms. Oliveira has a wide breadth of experience in collective lawsuits and public civil actions, litigation related to health and safety and occupational diseases. *Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law

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