Reforms approved by the Senate regarding salary equality between men and women. Pending approval by Deputies

On March 10, 2021, the Senate approved several reforms projects to guarantee equal pay for men and women. To be considered as approved, these reforms must be endorsed by the House of Deputies, where the project will be discussed in the next few days, and enacted by the Federal Executive, after publication in the Official Federal Gazette.

Under the reform package, the Social Security Law and the Federal Labor Law, among other laws, would be reformed by introducing or modifying provisions on discrimination, economic and labor violence, the gender gap and equal pay, which would imply, among others, the obligation of employers to guarantee the principle of substantive equality and equal pay for women and men.

These are some of the points that could be implied by the aforementioned reforms: 

a) The obligation of workplaces to submit to the processes for obtaining the Certificate of Gender Equality and Non-Discrimination in the Workplace that will certify that they have gender equality and non-discrimination practices, and the creation of a national registry of certified workplaces in terms of labor equality and non-discrimination.

b) Prohibition for employers to provoke or perpetuate the gender wage gap, prohibiting actions such as asking about salary history or even paying a lower salary for equal work or work of equal value.

c) Extension of the principle of non-discrimination and therefore applicable during the hiring process and during the term of the employment relationship, including from the publication of the vacancy.

d) The right of employees to sue for damages, including the recovery of differentiated compensation for up to two years prior to the filing of the lawsuit.

e) The prohibition for employers to generate information systems of persons who have filed a labor lawsuit against the employer.

If the amendment project is approved by the House of Deputies and the Executive Branch in the terms approved by the Senate, the Federal Labor Law will include penalties from 250 to 500 UMAs (which is equivalent to a fine between 22 thousand and 45 thousand pesos considering the daily value of the UMA) to the employer who performs, allows or tolerates actions or omissions to cause or perpetuate the gender wage gap and to the employer who does not comply with the provisions on equal pay between men and women for equal work, including the failure to obtain the Certificates of Gender Equality and Non-Discrimination in the Workplace

If you would like to know more details about the reforms or to know the status of their approval, please do not hesitate to contact us.

Yours sincerely,

Cannizzo, Ortiz y Asociados, S.C.