- Royal decrees 901/2020 and 902/2020 were published on 14 October and develop equality plans and equal pay.
- From 50 employees, a company must have a registered equality plan, with minimum content and a maximum term of four years.
- All companies must keep a pay register, and those with 50 or more employees must add a pay audit to their plan.
On 14 October 2020 two royal decrees, both dated 13 October, were published in the Official State Gazette, developing the obligations on equality between women and men in companies. Royal Decree 901/2020 regulates equality plans and their registration; Royal Decree 902/2020, equal pay. They give detail to what Royal Decree-Law 6/2019 had provided, which set the obligations but left their implementing rules pending.
For many companies this is a practical change and not just a matter of principle: it requires diagnosing the situation of the workforce, negotiating measures with employee representatives and registering the result. With staggered entry-into-force dates, companies have a margin that is worth using to get organised, rather than facing the obligation at the last moment and in a rush. In addition, the Labour Inspectorate monitors compliance with these obligations and may penalise companies that fail to comply.
The equality plan
Royal Decree 901/2020 sets the minimum content of equality plans, which start from a diagnosis negotiated with workforce representatives and specify objectives, measures, timetables and monitoring. Their duration cannot exceed four years and they must be entered in a register. It also allows the voluntary filing of protocols against sexual and sex-based harassment. The plan is not a document to be filed away: it must be implemented, evaluated and reviewed with the same representatives who negotiated it.
Companies with 50 or more staff are required to have a plan; those that already have one must adapt it within a maximum of twelve months from the decree’s entry into force. That takes place three months after publication, that is, on 14 January 2021. For smaller companies the plan is not required by law, although it may be if the collective agreement so provides.
Equal pay
Royal Decree 902/2020 develops the principle of equal treatment and non-discrimination in pay. All companies, regardless of size, must keep a pay register with salaries broken down by sex and by group or category, and those with 50 or more staff must carry out a pay audit and incorporate it into their equality plan. The register must be available to the legal representatives of the workforce and updated regularly.
This decree enters into force six months after publication, on 14 April 2021. The rule incorporates the concept of work of equal value: two different jobs may deserve the same pay if they require equivalent effort, responsibility, knowledge or working conditions. Valuing jobs with objective criteria is therefore the basis of compliance.
What to review
Companies should start by knowing where they stand: how many people they have, how they are distributed by sex and category and what pay register exists. From there, they should prepare to negotiate the diagnosis with workforce representatives and check whether the collective agreement sets its own obligations, because these sometimes go beyond what the law requires.
A documented job valuation with objective criteria helps both to comply with the royal decree and to defend pay decisions in an inspection. This is general information: the specific deadlines and obligations depend on the size of the company and its collective agreement, and should be confirmed with an employment adviser before acting.
Equal pay starts with knowing who is paid what and why.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
