Portugal proposes law to transpose EU Pay Transparency Directive

Portugal has presented an official proposal to transpose the European Union's Pay Transparency Directive into national law. While the proposal aims to ensure equal pay for men and women through increased transparency and reporting, it introduces several national specificities and deviations from the original EU directive.

Key differences include adjustments to thresholds and timelines, as well as the introduction of national mechanisms such as the 'Selo Igualdade Salarial'. The proposal also modifies how audits are conducted, adapting them to include joint evaluations that respect existing social dialogue frameworks.

Legal experts have raised concerns regarding two specific areas: the requirement for employers to agree on remuneration policies with worker representatives, and the extension of the period during which dismissals are presumed to be retaliatory. The current proposal suggests that a dismissal could be presumed abusive if it occurs up to three years after a complaint regarding pay equality is filed, tripling the existing one-year protection period.