Due to the Salary Transparency and Remuneration Criteria Law (Law 14,611/23), companies with 100 or more employees are obliged to publish their salary and remuneration criteria transparency reports every six months. The deadline for publication of the second report is September 30.[1]

Recently, however, the Federal Corut of Appeals for the 6th Circuit (TRF-6) suspended - again - the obligation to publish salary transparency reports, in a decision handed down in the case of Interlocutory Appeal 6002221-05.2024.4.06.0000/MG.

Despite the decision ordering suspension, there is a risk of revocation or modification, as occurred when the 1st Salary Transparency Report was published in March of this year. On that occasion, the injunction was lifted just five days before the companies were due to publish their reports.

Considering the possibility of revocation or modification of the decision ordering suspension - which could result in immediate restoration of the obligation to publish the reports - companies have three alternatives:

  • publish the report prepared by the Ministry of Labor and Employment (MTE);
  • publish the report prepared by the MTE together with a self-explanatory note, in which any inconsistencies in the labor authority's report are clarified (as we have already covered in our articles, the comparative figures presented by the MTE do not reflect the real scenario of the companies such that the comparison intended by Law 14,611/23 can be done, as they present various inconsistencies); or
  • file a lawsuit against publication of the report prepared by the MTE. With regard to this possibility, in March our firm was successful in more than 90% of all the lawsuits filed with injunctions so that our clients (including associations) would be released from the obligation to publish the 1st Salary Transparency Report prepared by the MTE.

In any case, we continue to recommend that companies continue to work towards:

  • implementing measures to achieve the objectives of Law 14,611/23, in particular the proportion of women in director, managerial, and senior management positions and the proportion of diversity groups in the company's workforce; and
  • drawing up their own salary transparency reports.

The implementation of suitability measures covers:

  • development and implementation of internal policies that promote equal opportunities, pay equity, diversity, and inclusion in the workplace;
  • holding regular training sessions to make employees aware of the importance of diversity, inclusion, preventing harassment and discrimination, and promoting inclusive leadership;
  • implementing recruitment, selection, promotion, and performance evaluation practices that guarantee equal opportunities for all employees;
  • obtaining gender equality and diversity certifications attesting to the company's commitment to promoting equality and inclusion.

A salary transparency report prepared by the company itself is essential. It can serve as a document to avoid possible penalties in the event of an assessment from the MTE, investigations by the Labor Prosecutor's Office (MPT), and class actions by labor unions.

Companies' own reports must be prepared in accordance with the specific occupations of their employees. Special attention should be paid to the requirements of article 461 of the CLT, in order to:

  • objectively compare salary and compensation criteria, pointing out any differences and the legal justifications;
  • indicate the proportion of women in director, managerial, and senior management positions, as well as the proportion of other minorities at the companies; and
  • present diversity and inclusion policies.

Companies that choose to file a lawsuit to prevent the publication of the report prepared by the MTE should do so as soon as possible, as the deadline for publication is approaching.

If you have any questions, the Machado Meyer team is at your disposal.

 

[1] The deadline for companies to fill in the information required by the Ministry of Labor and Employment (MTE) on the https://empregabrasil.mte.gov.br/">Emprega Brasil website to prepare the 2nd Salary Transparency Report has already been. The deadline is August 30th. We would also like to point out that failure to disclose the reports, as required by the MTE, may result in a fine of 3%, calculated on the payroll of the offending company, limited to 100 minimum wages.