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France to Fine Companies if Gender Pay Gaps Not Erased

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  • 09 Mar 2018
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France to Fine Companies if Gender Pay Gaps Not Erased

French companies will have three years to erase their gender pay gaps or face possible fines under plans presented by Prime Minister Edouard Philippe to unions and employers. Men are on average paid nine percent more than women in France, even though the law has required equal pay for the same work for the past 45 years, the government said. Under the plans, companies with more than 50 employees will be required to install special software hooked up directly to their payroll systems to monitor unjustified pay gaps. If a company fails to erase a pay gap detected by the software over three years, labour inspectors could impose a fine of up to one percent of the firm’s wage bill. Companies will also have to be more transparent about their gender pay gaps: they will be required to publish them on their websites and internally unions will have access to data by job role and seniority. 

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