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Millionaire fines for non-compliance of equal opportunity

17/10/2018
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In addition to the general sanctions that are applicable to companies for failing to comply with the obligation to establish an Equality Plan, a recent resolution of the National Court, sentences a company to millionaire payments for non-compliance to the obligations established in the Equality Plan, despite judicial reiteration. These financial penalties are the following:

  • 300.00 euros per day until the obligations established in the Equality Plan are definitively fulfilled
  • 300.00 euros per day from the notification of the Resolution for which compliance was required and until July 2018
  • 150.00 euros per day since the first of all the Resolution was notified in early 2017

Undoubtedly this resolution derives from repeated company behavior breaching the requirement of the Labor Court to respect the obligations established in the Equality Plan. However, being this a extreme case, we must remind the need for companies to be ready to comply with these obligations since equality has come to stay. This obligation derives, both from the current regulatory framework, and from the Labor Inspection implementation of its Strategic Plan for the period 2018 – 2010, stating various actions to verify and ensure compliance with the legislation on equality and not discrimination, such as the following:

  1. Specializing Labor Inspectors with regard to equality and prioritizing actions in this area, especially aimed at vulnerable groups
  2. Design of specific campaigns on gender equality
  3. Establishment of action systems to act on the wage gap
  4. Campaigns to detect possible discriminatory clauses in collective bargaining
  5. Specific campaigns for the conciliation of personal and work life

As a reminder, we must point out that all companies are obliged to comply with the equality treatment and opportunities regulation. But some companies have an additional obligation to establish the so-called Equality Plan, as in the following cases:

  1. Companies that have more than 250 workers
  2. Companies obliged by collective agreement
  3. Companies that are forced after an inspection process

Failure to comply with the equality regulations constitutes a serious infraction sanctioned with economic fines that range between 6.251,00-187.515,00 Euros, in addition to the automatic loss of bonuses or benefits in employment promotion programs.

At UHY Fay & Co we have a team specialized in the matter, and we are at your disposal to review your situation and prepare you for the Strategic Plan of the Labor Inspection, as well as to implement the obligations deriving from the applicable regulation, either to implant an equality plan or to assess the opportunity to implement the appropriate measures in those companies not obligued to do it.