Extent of Protection
Article 157 of the Treaty on the Functioning of the European Union consecrates the principle of equal pay for male and female employees performing equal work. This principle is reflected in Portuguese law through Article 24 of the Labour Code, which guarantees the right to equal opportunities and equal treatment for all employees and job candidates.
As a result, employees are entitled to equal working conditions, particularly regarding pay, ensuring that any factors determining remuneration are free from discrimination based on gender.
To further combat the gender pay gap, Portugal has taken additional steps. Law no. 60/2018, which came into force on February 21, 2019, introduced measures to strengthen gender pay equality for equal work or work of equal value. This law mandates transparency in pay structures and obliges employers to justify wage differences where they exist.
At the national level, a cabinet resolution approved broader strategic objectives for the period 2018-2030 as part of the National Strategy for Equality and Non-Discrimination, accompanied by specific Action Plans.
These initiatives reflect Portugal’s ongoing commitment to achieve gender equality in the workplace and eradicating wage disparities.
Remedies
If an employee or union representative suspects of any disconformity of the compliance of any employer, they can request an opinion from CITE (“Comissão para a Igualdade no Trabalho e no Emprego”) on the existence of gender-based wage discrimination.
The request must be submitted in writing and contain a duly substantiated allegation of wage discrimination.
CITE’s final opinion is notified to the labour authority (“Autoridade Para as Condições de Trabalho”) for the purposes of opening a proceeding due to gender-based discrimination and the application of due fines. gender-based discrimination qualifies as a very serious offence under the Portuguese Labour Code and is punishable with fines that may range from 2,040 to 61,200 Euros.
Dismissal or other sanctions allegedly imposed to punish a labour offence shall be presumed as being abusive if they take place up to one year after the request for CITE’s opinion.
Enforcement/Litigation
Discrimination cases regarding a differential remuneration based on gender are still rare.
Other Requirements
The Single Report, drawn up annually by companies, must include nominative information, segregated by gender. Such information must also be made available to employees.
Employers are subject to adopting a transparent remuneration policy, built on the basis of evaluation of the components of the functions performed by employees, underpinned by objective criteria common to any gender (e.g. merit, productivity, attendance or seniority).
An assessment plan must be submitted by Companies with gender pay differences, within 120 days, if and when notified by Autoridade Para as Condições de Trabalho (“ACT”).
Failure to submit and adopt an evaluation plan as described above, and to communicate the results thereof, constitutes a serious administrative infraction that, in addition to the applicable fines from 612 to 9,690 Euros, can also involve an ancillary sanction of temporary banning from public tenders for a period of up to two years.