Brazil: Are Brazilian Companies with 100 or More Employees Required to Publish the Third Salary Transparency Report by March 31?

Authors: Gabriela Lima and Mariana Fiorotto 

The Salary and Remuneration Criteria Transparency Law (Law 14,611/23) stipulates that companies with 100 or more employees must publish their Salary and Remuneration Criteria Transparency Reports every six months, in March and September each year.

Thus, by March 31, companies must publish the third Report on their websites, social media, or similar platforms, ensuring that it is widely disseminated and accessible to all workers and the public.

However, this obligation is currently suspended due to a ruling by the Regional Federal Court of the 6th Region (TRF-6) in Interlocutory Appeal 6002221-05.2024.4.06.0000/MG. As a result, some companies have chosen to publish the report, while others are opting not to. If the TRF-6 ruling changes, the obligation to publish the Reports will resume.

As the deadline for publishing the third Report approaches, the Ministry of Labour and Employment (MTE) has been sending messages to some companies via the Labour Electronic Domicile (DET) about their failure to publish the second Report. In the message, the MTE emphasises that its publication is mandatory under the law. While this is not a formal notification, it indicates that the MTE is monitoring compliance with the obligations outlined in Law 14,611/23 and may conduct inspections of companies regarding this matter in the future.

Companies that decide not to publish the Salary Transparency Report based on the current TRF-6 ruling (rather than obtaining individual injunctions applicable to their companies) have grounds for their decision. However, they should be aware that this ruling may change, which will resume the obligation to publish the report. Additionally, these companies should prepare for the possibility of inspections by the MTE.

On the other hand, several companies choosing to publish the Salary Transparency Report are doing so with a disclaimer regarding the methodology adopted by the MTE, which involves grouping employees performing different activities into the same categories.

In conclusion, the landscape surrounding the Salary and Remuneration Criteria Transparency Law is currently marked by uncertainty. Companies must carefully weigh their options regarding the publication of the Report while remaining vigilant about potential changes to the TRF-6 ruling. As the MTE continues to monitor compliance, companies should be prepared for possible inspections.

Key Action Points for Human Resources and In-House Counsel

• Companies should assess whether they will publish the Report or not. If they choose to publish it, it may be advisable to include a disclaimer regarding the methodology used by the MTE, depending on the results of the Report;
• Companies that decide not to publish the Report should remain informed about any changes to the TRF-6 ruling and understand the potential implications for their obligation to publish the Report; and
• All companies should regularly monitor compliance with rules related to equal pay for equal work to ensure adherence to legal requirements.