Germany Government Pass Pay Transparency Act To Ensuring Pay Equality
Over the past several years there has been a growing demand for equal rights for both men and women at workplace with special focus on pay equality for same or equivalent work. Germany is one of the few countries known to have taken the concrete steps in the direction of ensuring pay equality. Pay Transparency Act As any professional payroll company Germany will inform its clients, the Pay Transparency Act, which was implemented by the German government in 2017, has been one of biggest step in the direction of ensuring pay equality. This is because the Act not only aims to reveal the differences between the pays of men and women but also goes a step further to work towards removing these inequalities. The responsibility of the payroll service provider Germany to inform its client that if they are employing more than 500 workers, then the ACT makes it mandatory for them to voluntarily perform company audits. The audit should focus on ensuring that their payroll procedure follows the principles se out by the law and that the rules about pay and different components of pay as well as their application meet the terms of equal-pay requirement. To ensure timely provision of information in an accurate manner and to minimize the expected bureaucratic burdens, it is advisable for the employers to have standardized procedures in place supported by model documents. It is important to understand that there are some exceptions to the provisions, which need to be handled in a special manner.
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