Agefi Luxembourg - mai 2024

AGEFI Luxembourg 36 Mai 2024 Droit / Emploi ByMarieSINNIGER,Counsel,HeadofEmployment andAlyssiaMECHALIKH, ManagingAssociate Employment, Linklaters Luxembourg L et’s take a closer look at the Pay Transparency Direc- tive (PTD) (1) which entered into force on 7 June 2023 and is to be transposed byMember States by 7 June 2026? Certainactorsfeelitisprematureto investigate this new framework. Others – particularly fromthe finan- cial sector –may consider themselves exempt from these new provisions withwhichtheyalreadycomplyinpart. Although PTD sets out requirements, most of which already exist, it provides for amorewide-reachingandprescriptive set of rules onpay transparency and gender pay reporting than ever before. Here are its main legal features. Snapshot of the current legal framework Labour rules : the principle of equal pay for equal work is not enshrined in employment law. However, speaking of equal pay betweenmen and women, the law requires that every employer should “ ensure that men and women receive equal pay for equal work or work of equal value ” (2) to avoid any differential treatment regarding wages and risks of discriminationprohibitedunder theLabourCode (3) . Tomitigate potential disputes, employersmust not only demonstrate compliance with this regulation, but also present substantial reasons which are not related to any formof gender-baseddiscrimination, to support the identified salary gap. Moreover, if a staff delegation has been established andadelegate for equalityappointed, theymust re- ceive half-yearly statistics on wages broken down bygender. (4) Also, staffdelegatesmaypublicly share their reports and position on salary gaps. (5) Penalties in this respect aredissuasive. They include the nullity of provisions in an employment contract or an individual or collective agreement or company internal rules in support of differences in treatment. Evencriminal penalties (6) or risks of obstructionmay be applied where the required information is not duly provided. Financial sectors : employers from this sector are already aware of the gender pay equality principle, notably through collective bargaining agreements for banks and insurance employees ensuring equal treatment for men and women (access to training and professional promotion, working conditions andwages). Furthermore, companies falling under remuneration policies, such as institutions subject to theCapital RequirementsDirective ( CRD ) (7) and the Investment FirmsDirective ( IFD ) (8) , are very fa- miliar with these concepts. Indeed, CRD explicitly requires that institutions apply gender-neutral remuneration policies (9) . Also, the European Banking Authority (the EBA) should benchmark and monitor gender pay gaps, as indicated in the EBA Guidelines on sound re- muneration policies (EBA/GL/2021/04) and the benchmarking of the gender pay gap (EBA/GL/2022/06 under CRD - EBA/GL/2022/07 under IFD) (the EBA GL). Locally, this is outlined in Circulars CSSF 23/838 (non-SNI IFR investment firms), 12/552 as amended and 23/836 (credit insti- tutions and all CRR investment firms). The Corporate Sustainability Reporting Directive ( CSRD ), which imposes disclosure of sustainabil- ity-related matters while giving the overarching idea that investors require comparable information formaking informed investment decisions,will also have an impact. Looking back over the past few years, an EU Directive of 2006 (10) and a recommen- dationonpay transparency issuedby theEuropean Commission in 2014 (11) has already encouraged the monitoring of gender pay gaps. Hence, might it be inferred that PTD essentially makes the above recommendationmandatory? If fi- nancial institutions already apply the EBA GL and CSRD, could this suggest an absence of further du- ties and allow them to use existing gender pay gap data sourced fromsoundremunerationpolicymon- itoring or EBA benchmarking submissions? Unfortunately, no: there arematerial differences. For example, PTDenvisages that the calculationof gen- der paygaps shouldbe adjustedbasedon thework category, carried out annually on an hourly pay basis, including every variable remuneration, such as severance. Meanwhile, the EBA GL refer to an unadjusted pay gap basis, considering only the yearly pay and excluding the fixed variable pay (severance and sign-on bonus). Another difference relates to thepayaudit imposed by PTD and triggered in case of a gender pay gap exceeding 5% (in anywork category) which cannot be justified and remains unaddressed for 6months. In contrast, under the EBA GL, this action is only performedwhere there arematerial differences be- tween the average pay of male staff and that of fe- male staff. Finally, PTD contains more extensive and detailed guidance than the EBA GL. Leading institutions are there- fore required to re-evaluate and standardise their calculationmeth- odstoconformtobothlegalframe- works. This could also prompt the EBA to reconsider its guidelines and take account of PTD's consid- erations. PTD, paving the way to pay equality Transparencyandreport- ing are twomain features of PTD. Scope : PTD will apply to all EU employers in both public and private sectors. Most provisions will apply re- gardless of the headcount, except for gender pay reporting obligations that will only apply to EUemployerswith over 100 employees. Transparency : employers will have to complywith the following pay transparencymeasures: - Pre-employment: (i) inform potential applicants about the pay rate or range prior to interviews (e.g. via job adverts); and (ii) refrain from asking about applicants’ pay history; and -Duringemployment: (i)makeavailable toemploy- ees the criteriaused todeterminepay levels andpro- gression; (ii) ensure that employees are entitled to request information on their individual pay levels (broken down by gender) for workers performing identical tasks or work of equal value; (iii) remind employeesof this right annually; and (iv) ensure that employees, their representatives, labour inspec- torates and equality bodies are entitled to ask ques- tions about gender pay gap reports, including explanations concerning gender pay differences. Employers will have to respond to information re- quests andrectifyunjustifiedgenderpaydifferences and differences not explained by objective and gen- der-neutral factors within a reasonable duration, in cooperationwith the above parties. Employers are prohibited frompreventing employ- ees fromdisclosing their pay (e.g. contractual confi- dentiality clauses). Enforcement measures : PTD reinforces equal pay claims with the following provisions: - Employees claiming equal paymust be entitled to uncapped damages, including a full recovery of wages for previous work, bonuses, fringe benefits, lost opportunities and accrued interests; -Courtshaveauthoritytoorderanemployertocease any violations of the equal pay principle; -Organisationswithalegitimateinterestcansupport or act on behalf of victims of pay discrimination; - If companies fail to fulfil their information and/or reporting obligations, the burden of proof lies with the employer. The same applies once employees showapparent discrimination; -Statutelimitationsdonotapplyuntilemployeesare or can reasonably be expected to be aware of the in- fringement; and - Employers bear legal costs in all cases, provided employees had reasonable ground for starting pro- ceedings. Dissuasive penalties, such as fines based on the em- ployer’s gross annual turnover or annual payroll cost,will bedefinedbyMember States. Repeatedvi- olations and non-compliance may lead to losses of public contracts or procurement procedures. Non- compliancemay also result in reputational damage. Inaddition,nationallabourinspectorateswillensure PTD compliance whereas supervisory bodies must have adequate powers to request additional infor- mation about gender pay reports and expect timely employers’ responses. Reporting and compulsory pay audits : PTD im- poses a phased rollout: - Employers with over 150 employeesmust publish theirfirst reports by7 June 2027 (frequencywill then depend upon the company size: annually for firms withover 250 employees andevery3years for those with 150-249 employees); and - Employers with 100-149 employees must publish their first reports by7 June 2031 (thenevery3years). National lawsmay require employerswith less than 100 employees to submit reports. Employers with over 100 employees must also cal- culate gender pay gaps andpublish related reports, with data broken down by category of workers doing the sameworkorworkof equal value and in- cluding all elements of pay, such as pension and fringe benefits. An average pay gap of 5%not justified by objective and gender-neutral criteria or remedied within 6 months of the date of submission of the gender pay gap report will be included in the report resulting in a compulsory pay audit performed jointly with employee representatives. In short, the transposition of PTDwillmean signifi- cant changes, and employers must be ready to hit the ground running upon introduction of the new legislation scheduled for 2026. Are you where you need to be? 1) Directive (EU) 2023/970 of the European Parliament and of the Councilof10May2023tostrengthentheapplicationoftheprinciple of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms. 2)Article L. 225-1 of the Labour Code (LC). 3)Article L. 241-1 LC. 4)Article L. 414-3 (2) LC. 5)Article L. 414-16 LC. 6)Articles L. 225-5 and L. 241-11 LC. 7)Directive2013/36/EUoftheEuropeanParliamentandoftheCoun- cil of 26 June 2013 on access to the activity of credit institutions and theprudentialsupervisionofcreditinstitutionsandinvestmentfirms. 8) Directive (EU) 2019/2034 of the European Parliament and of the Councilof27November2019ontheprudentialsupervisionofinvest- ment firms. 9) E.g. law of 5April 1993 on the financial sector, as amended, and notablyArticle 1, point 26.2. 10) Directive 2006/54/EC of the European Parliament and of the Councilof5July2006ontheimplementationoftheprincipleofequal opportunities and equal treatment of men and women in matters of employment and occupation. 11) CommissionRecommendation 2014/124/EUof 7March 2014. Mind the (gender) pay gap! L a FEDIL vient de publier les conclusions de son enquête 2024 «Les qualifications de demaindans l’industrie» portant sur les prévisions d’embauche des entreprises industrielles duGrand- Duché de Luxembourg. Donner une vue d’ensemble des besoins Par rapport aux éditions précédentes qui alternaient depuis 1998 entre le secteur de l’industrie et le domaine des technologies de l’information et de la communication, cette nouvelle édition de l’enquête re- groupedésormaislesdeuxdomainesd’ac- tivitépourdonnerunevued’ensembledes profilstechniques,digitauxetadministra- tifs recherchés sur une période de deux ans. Ainsi, pour l’édition 2024, le sondage a été étenduà toutes les entreprisesmem- bresdelaFEDILetseferadorénavantàun rythme bisannuel. L’enquêtesurlesqualificationsdedemain dansl’industrieconstitueunoutilprécieux aussi bien pour les jeunes et leurs parents que pour les responsables d’orientation. Les objectifs de l’étude consistent à cerner les besoins des entreprises, concilier offre etdemandedeformationdansl’intérêtdes jeunes, donner un indicateur fiable aux services d’orientation scolaire et profes- sionnelle ainsi qu’adapter la politique de formationauxréalitéséconomiques.Dans uncontexteoùlemarchédutravailévolue rapidement,ilestessentieldegarantirque la formation professionnelle initiale pré- pare efficacement les jeunes à obtenir les compétences requises pour répondre aux besoins futurs. Cesbesoinss’inscriventclairementdansle cadredeladoubletransitionécologiqueet digitale que vivent aujourd’hui les entre- prises, doublée par l’émergence de nou- velles technologies, dont notamment l’intelligence artificielle, et des obligations administrativesdereportingtoujoursplus nombreuses. Pour faire face à ces enjeux, denouvellescompétencessontnécessaires etlesmétierssontappelésàévoluer.Dans cette perspective également, l’enquête re- jointl’approchedelaFEDILvisantàtrans- mettre les besoins de ses membres et à encourager les initiatives qui les aident à recruter les experts de demain. Résultats d’enquête L’enquête 2024 apermis de recenser 1.970 prévisionsd’embauches,dont942(47,8%) créations d’emplois et 1.028 (52,2%) rem- placements de départs sur les deux pro- chaines années. Même si, globalement, l’enquête révèle un pourcentage de rem- placementsplus élevéque lepourcentage de créations de postes, l’économie luxem- bourgeoise reste créatrice nette d’emplois d’après les chiffres duStatec. Les 1.970 prévisions d’embauches se ré- partissentsurlesmétiersdelaconstruction (635),lesmétiersdel’industrie/duproces- susindustriel(521),lesmétiersdesupport informatique (312), lesmétiersde support administratif(267)ainsiquesurlesmétiers du transport (235). Ces intentions de recrutement ont été ex- primées par 109 entreprises ayant parti- cipé à l’enquête et représentant à elles seules 30.413 emplois. Il est à noter que le taux de participation (16,34%) a été assez faible. La cause de ce faible taux de ré- ponse réside très probablement encore dans le manque de prévisibilité d’em- bauches pour les entreprises dans un contexteéconomiquedifficilemarquépar une inflation toujours assez élevée, le coupdefreindesactivitésdeconstruction et un ralentissement des investissements des entreprises. En ce qui concerne les formations les plus sollicitées par les entreprises industrielles, le diplôme d’aptitude professionnelle (DAP)arriveloinentête(36,2%),suivipar le diplôme de Bachelor (17,5%), puis par celui duTechnicien (15,3%) et duMaster / Doctorat (15,1%). Traditionnellement, le BTS (10,2%) et le BAC (5,8%) sont les ni- veaux de formation les moins recherchés par les secteurs d’activité entrant dans le périmètre de l’enquête. Plusieurs partenaires institutionnels ont collaboréàcetteenquêtedelaFEDIL,àsa- voirlaChambredeCommerce/Houseof Training,laMaisondel’orientation,lemi- nistère de la Recherche et de l’Enseigne- mentsupérieurainsiquel’Agencepourle développement de l’emploi (ADEM). Par ailleurs, l’enquête s’inscrit dans lepro- jetHelloFuturede laFEDIL, une initiative visant à promouvoir les métiers tech- niques et scientifiques de l’industrie au- près des jeunes. La brochure, détaillant les conclusions de l’enquête et of- frant unemultitude d’informations sur les secteurs cou- vertsainsiquesurlesformationsdisponibles,estaccessible en lignesur lessiteswww.fedil.luetwww.hellofuture.lu Enquête FEDIL «Les qualifications de demain dans l’industrie »