New Gender Pay Gap Requirements

Author:Mr Daniel Ornstein and Tony S. Martinez
Profession:Proskauer Rose LLP
 
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Switzerland has joined the growing list of jurisdictions to introduce legislation to address the gender pay gap.

Effective July 1, 2020, employers with 100 or more employees (including part-time and hourly employees) will be required to conduct an internal gender pay gap analysis every four years until June 30, 2032. Affected employers will be required to complete their first internal analysis by June 30, 2021.

If the requirement to carry out the analysis is the stick, the carrot is that where an employer's analysis demonstrates that pay equity has been achieved, they are no longer required to conduct further analyses. The Swiss government provides employers with a free tool for conducting the analyses, which can be found here.

Employers will also be required to submit their analyses for independent verification by June 30, 2022. Independent verification may be conducted by: (i) a firm authorized under the Audit Supervision Act; (ii) an organization that meets the requirements of Article 7 of the Gender Equality Act; or (iii) employee representation pursuant to the Swiss Workers' Participation Act.

Notably, the new legislation does not provide for sanctions or penalties in the event that an employer does not conduct an analysis or...

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