Cláudia Ribeiro da Silva highlights pay transparency as a differentiating factor for employers
Cláudia C. Ribeiro da Silva is quoted in an Executive Digest article on the changes that the European Pay Transparency Directive may introduce to remuneration policies, talent management and organisational culture.
The senior associate at Abreu Advogados warns that failure to comply with the rules that become applicable may result in labour-related administrative offences and an increase in litigation. In addition to the payment of salary differences, companies may also face claims for compensation for financial and non-financial losses.
Cláudia Ribeiro da Silva stresses, however, that equal pay is becoming increasingly strategic. “Pay equality is increasingly being seen not as a legal requirement, but rather as a differentiating factor for employers,” she says.
This development reflects the arrival of a new generation in the labour market that is more demanding in relation to equality, transparency and pay fairness. The adoption of clear and balanced remuneration policies may therefore help strengthen employees’ trust and sense of belonging, while also supporting the attraction and retention of talent.
The lawyer also highlights the link between equal pay and companies’ ESG strategies, as organisations increasingly seek to strengthen their positioning and assess their sustainability on the basis of ethical and social values.
More than simply complying with new legal obligations, organisations should integrate equal pay as a core value by objectively reviewing their remuneration policies, documenting existing differences and ensuring that these are based on justified criteria.
Read the full article here.
