Equal Pay between Men and Women for the Same Work or for Work to which Equal Value is Attributed
The Law
The Equal Pay between Men and Women for the Same Work or for Work to which Equal Value is Attributed Law of 2002 (Principal Law), was put into force on 1 January 2003. Its purpose is to ensure that the principle of equal pay between men and women, for equal work or work of equal value, is applied, regardless of the employee’s sex. By amendment which was put into force on 1 May 2004, the right to submit a relevant complaint to the Ombudsman is also granted to a person who believes that he/she has been offended by an infringement of the Law. The Ombudsman has the authority to investigate the said complaint.
Who is covered
The Law applies to all employees (in the private, public and semi-public sectors, including the Armed Forces and the Security Forces) for all activities related to employment, except the self-employed.
Employment and remuneration
Employment means the offer of work or services by remuneration based on an agreement (oral, written, individual or collective) or employment relationship. The employment may be full-time or part-time, of fixed or indefinite duration, on continuous or non continuous basis and regardless of the work place and includes employees working at home and apprentices. Remuneration includes any contributions (direct or indirect, either in money or kind) by the employer to the employee in exchange for work provided.
The principle of equal pay
The principle of equal pay means the absence of any kind of direct or indirect discrimination based on sex, as regards pay for the same work or for work to which equal value is attributed. Every employer must provide equal pay to men and women for the same work or for work to which equal value is attributed, regardless of the sex of the employee and without exercising direct or indirect discrimination regarding remuneration or other benefits, either in money or in kind.
Work of equal value
Work of equal value means work carried out by men and women, which is of identical or substantially equal nature or to which equal value is attributed, based on objective criteria as determined by the Law.
Direct and indirect sex discrimination
Direct discrimination means unfair treatment clearly related to a person’s sex. Indirect discrimination exists when a provision, practice, term or criterion which appears to be neutral, affects a considerably higher percentage of persons belonging to one sex, unless such provision, practice term or criterion may be justified by objective factors not relating to sex.
Determination of pay
Where a system of professional classification is used for the determination of pay, such a system must be based on common criteria for all (men and women) and must be designed in such a manner that discrimination based on sex is excluded. The comparison between employees is made with reference to employees who are employed or were employed by the same employer, or by business controlling the employer during the last two or following years.
Abolition of contrary provisions
Any existing legislative provision which is contrary to the provisions of the Law shall be abolished (as from 1 January 2003) at the part where it directly or indirectly discriminates against one sex. If the discrimination consists in granting of a right or other benefit only to persons of one sex, such right or benefit shall be automatically extended to persons of the other sex. Furthermore, the Minister of Labour and Social Insurance is obliged to abolish or amend, accordingly, any individual or regulatory administrative action that is contrary to the provisions of the Law.
Regulating agreements
Each regulation or term in an existing collective or individual employment agreement and each internal business regulation or rule of free vocation, which is contrary to the provisions of the Law, is abolished at the part where it directly or indirectly discriminates against one sex. In case where the discrimination consists in the granting of a right or other benefit only to persons of one sex, such right or benefit shall be also extended to persons of the other sex.
Any new provision of a collective or individual employment agreement, internal business regulation or rule of free vocation, which is contrary to the provisions of the Law, is abolished at the part where it directly or indirectly discriminates against one sex. Any right or benefit that is granted to persons of one sex shall be also extended to persons of the other sex.
Court decisions
Subject to the exclusive jurisdiction of the Supreme Court of which decisions are final and binding, the competent courts decide, either after a submission of a special application or incidentally, for the abolition of a law, or amendment of a term or extension of a right. When such decisions concern collective agreements, they are communicated to all the competent employers and employees organisations which are obliged to promptly adjust the text of the relevant collective agreement with the abolition, annulment or extension ascertained.
Protection of employees
No person shall be dismissed or subjected to adverse treatment by his/her employer for having submitted a complaint or contributed to the prosecution of an offender. An employer who does not comply with the Law is guilty of an offence and liable to a fine not exceeding €1.708.
Application of the Law
The Minister of Labour and Social Insurance has the responsibility for the application of the Law and therefore appoints Inspectors (or other officers). The Inspectors may either carry out an ex officio investigation or examine complaints for infringement of the provisions of the Law. For this purpose, they are granted the necessary powers in order to enter any premises aiming at inspecting and collecting information, documents and conducting interrogations, including the contribution of any public authority, aiming at effectively carrying out their duties. The entrance to house dwellings may take place following the consent of the owner.
Submitting a complaint
In case a complaint is submitted by a person who believes to be offended (or on behalf of such person by employees organisations, or non governmental organisations promoting equality between men and women, or the protection of human rights in general) and provided that the case has not been admitted in court, an Inspector proceeds immediately to the investigation of the complaint and attempts to settle the dispute.
Committee for Investigation and Assessment of Work
Provided that the dispute has not been settled by the Inspector at the previous stage, it is referred to a Committee for Investigation and Assessment of Work which is appointed by the Minister in consultation with the employees and employers organisations. The Committee investigates the case and prepares a report, within three months, which is then submitted to the Inspector. The Inspector attempts once more to settle the dispute and if so, he/she prepares the minutes of compromise. If not, he/she prepares minutes noting all his/her actions and ascertainments which may be later used in court.
Criteria for comparison and evaluation
For purposes of comparison the Inspectors as well as the Committee use certain criteria which are relevant to the specific occupational category or field of economic activity and in particular the following:
Competent court and compensation
Subject to the exclusive jurisdiction of the Supreme Court, the Labour Disputes Court has the jurisdiction to hear disputes arising from the Law. In case of infringement of the Law,
Offences and penalties
Apart from the right to compensation for damage that includes monetary satisfaction for possible moral detriment, whoever is found that intentionally violates the principle of equal payment, is liable to a fine of up to €6.834 or to imprisonment for up to six months or to both penalties.
Obstruction of Inspector
Whoever intentionally obstructs or attempts to obstruct an Inspector or refuses to answer or lies or omits to present any necessary document in accordance with the Law, or obstructs or attempts to obstruct any other person from presenting himself/herself before an Inspector or the members of the Committees in the exercise of their duties, is liable to an imprisonment up to three months or to a fine not exceeding €5.125 or to both penalties, if such action is not more severely punishable by other provisions. If the offences are committed by a legal person or organisation there are penalty provisions in the law against the managers or other executives, if it is proved that the offence has been committed with their consent,
co-action or tolerance. Relevant penalties are also provided in the case that the offences are due to severe negligence.
Abolition of previous laws
Equal Pay between Men and Women for Work of Equal Value Laws and relevant Regulations that were in force before the application of this Law, have been abolished since 1 January 2003
The Equal Pay between Men and Women for the Same Work or for Work to which Equal Value is Attributed Law of 2002 (Principal Law), was put into force on 1 January 2003. Its purpose is to ensure that the principle of equal pay between men and women, for equal work or work of equal value, is applied, regardless of the employee’s sex. By amendment which was put into force on 1 May 2004, the right to submit a relevant complaint to the Ombudsman is also granted to a person who believes that he/she has been offended by an infringement of the Law. The Ombudsman has the authority to investigate the said complaint.
Who is covered
The Law applies to all employees (in the private, public and semi-public sectors, including the Armed Forces and the Security Forces) for all activities related to employment, except the self-employed.
Employment and remuneration
Employment means the offer of work or services by remuneration based on an agreement (oral, written, individual or collective) or employment relationship. The employment may be full-time or part-time, of fixed or indefinite duration, on continuous or non continuous basis and regardless of the work place and includes employees working at home and apprentices. Remuneration includes any contributions (direct or indirect, either in money or kind) by the employer to the employee in exchange for work provided.
The principle of equal pay
The principle of equal pay means the absence of any kind of direct or indirect discrimination based on sex, as regards pay for the same work or for work to which equal value is attributed. Every employer must provide equal pay to men and women for the same work or for work to which equal value is attributed, regardless of the sex of the employee and without exercising direct or indirect discrimination regarding remuneration or other benefits, either in money or in kind.
Work of equal value
Work of equal value means work carried out by men and women, which is of identical or substantially equal nature or to which equal value is attributed, based on objective criteria as determined by the Law.
Direct and indirect sex discrimination
Direct discrimination means unfair treatment clearly related to a person’s sex. Indirect discrimination exists when a provision, practice, term or criterion which appears to be neutral, affects a considerably higher percentage of persons belonging to one sex, unless such provision, practice term or criterion may be justified by objective factors not relating to sex.
Determination of pay
Where a system of professional classification is used for the determination of pay, such a system must be based on common criteria for all (men and women) and must be designed in such a manner that discrimination based on sex is excluded. The comparison between employees is made with reference to employees who are employed or were employed by the same employer, or by business controlling the employer during the last two or following years.
Abolition of contrary provisions
Any existing legislative provision which is contrary to the provisions of the Law shall be abolished (as from 1 January 2003) at the part where it directly or indirectly discriminates against one sex. If the discrimination consists in granting of a right or other benefit only to persons of one sex, such right or benefit shall be automatically extended to persons of the other sex. Furthermore, the Minister of Labour and Social Insurance is obliged to abolish or amend, accordingly, any individual or regulatory administrative action that is contrary to the provisions of the Law.
Regulating agreements
- Existing agreement
Each regulation or term in an existing collective or individual employment agreement and each internal business regulation or rule of free vocation, which is contrary to the provisions of the Law, is abolished at the part where it directly or indirectly discriminates against one sex. In case where the discrimination consists in the granting of a right or other benefit only to persons of one sex, such right or benefit shall be also extended to persons of the other sex.
- New agreement
Any new provision of a collective or individual employment agreement, internal business regulation or rule of free vocation, which is contrary to the provisions of the Law, is abolished at the part where it directly or indirectly discriminates against one sex. Any right or benefit that is granted to persons of one sex shall be also extended to persons of the other sex.
Court decisions
Subject to the exclusive jurisdiction of the Supreme Court of which decisions are final and binding, the competent courts decide, either after a submission of a special application or incidentally, for the abolition of a law, or amendment of a term or extension of a right. When such decisions concern collective agreements, they are communicated to all the competent employers and employees organisations which are obliged to promptly adjust the text of the relevant collective agreement with the abolition, annulment or extension ascertained.
Protection of employees
No person shall be dismissed or subjected to adverse treatment by his/her employer for having submitted a complaint or contributed to the prosecution of an offender. An employer who does not comply with the Law is guilty of an offence and liable to a fine not exceeding €1.708.
Application of the Law
The Minister of Labour and Social Insurance has the responsibility for the application of the Law and therefore appoints Inspectors (or other officers). The Inspectors may either carry out an ex officio investigation or examine complaints for infringement of the provisions of the Law. For this purpose, they are granted the necessary powers in order to enter any premises aiming at inspecting and collecting information, documents and conducting interrogations, including the contribution of any public authority, aiming at effectively carrying out their duties. The entrance to house dwellings may take place following the consent of the owner.
Submitting a complaint
In case a complaint is submitted by a person who believes to be offended (or on behalf of such person by employees organisations, or non governmental organisations promoting equality between men and women, or the protection of human rights in general) and provided that the case has not been admitted in court, an Inspector proceeds immediately to the investigation of the complaint and attempts to settle the dispute.
Committee for Investigation and Assessment of Work
Provided that the dispute has not been settled by the Inspector at the previous stage, it is referred to a Committee for Investigation and Assessment of Work which is appointed by the Minister in consultation with the employees and employers organisations. The Committee investigates the case and prepares a report, within three months, which is then submitted to the Inspector. The Inspector attempts once more to settle the dispute and if so, he/she prepares the minutes of compromise. If not, he/she prepares minutes noting all his/her actions and ascertainments which may be later used in court.
Criteria for comparison and evaluation
For purposes of comparison the Inspectors as well as the Committee use certain criteria which are relevant to the specific occupational category or field of economic activity and in particular the following:
- the nature of duties
- the degree of responsibility
- the qualifications, skills and seniority
- the requirements relating to physical or mental qualifications
- the conditions of work
- the importance or frequency of disputes in the workplace in relation to the total of work.
Competent court and compensation
Subject to the exclusive jurisdiction of the Supreme Court, the Labour Disputes Court has the jurisdiction to hear disputes arising from the Law. In case of infringement of the Law,
- any provisions that lay as precondition for the liability of the offender or the right to compensation or other remedy, a minimum term of employment or a minimum number of working hours on behalf of the employ, do not apply
- any provisions which determine a maximum limit of compensation do not apply
- any agreement between the employer and the employee providing such prerequisites is declared void
- the amount of compensation awarded is paid entirely by the employer.
Offences and penalties
Apart from the right to compensation for damage that includes monetary satisfaction for possible moral detriment, whoever is found that intentionally violates the principle of equal payment, is liable to a fine of up to €6.834 or to imprisonment for up to six months or to both penalties.
Obstruction of Inspector
Whoever intentionally obstructs or attempts to obstruct an Inspector or refuses to answer or lies or omits to present any necessary document in accordance with the Law, or obstructs or attempts to obstruct any other person from presenting himself/herself before an Inspector or the members of the Committees in the exercise of their duties, is liable to an imprisonment up to three months or to a fine not exceeding €5.125 or to both penalties, if such action is not more severely punishable by other provisions. If the offences are committed by a legal person or organisation there are penalty provisions in the law against the managers or other executives, if it is proved that the offence has been committed with their consent,
co-action or tolerance. Relevant penalties are also provided in the case that the offences are due to severe negligence.
Abolition of previous laws
Equal Pay between Men and Women for Work of Equal Value Laws and relevant Regulations that were in force before the application of this Law, have been abolished since 1 January 2003