Equal Pay Confirmation

Companies and institutions that employ 25-49 workers on a yearly basis can choose to earn an equal pay certificate, according to the 7th article of ACT on Equal Status and Equal Rights irrespective of Gender no. 150/2020 or apply for an Equal pay confirmation, according to the 8th article of the same laws. If a company or an institution decides to use the confirmation, there are certain conditions that need to be fulfilled.

Companies and institutions need to submit data to the Directorate of Equality that confirms equal pay systems, and that the implementation of those systems fulfils, according to Directorate of Equality, the demands that are presented in par. 2 of art. 8. Key factors in the data are policies in equal pay affairs and equality plans (or the integration of equal rights perspectives in personnel policies). The equality plan is thought to gain value when the Directorate of Equality has agreed to it, compared to par. 2 art. 5 of Laws of Equal rights.

For that to take place there needs to be a job classification based on a pre-decided objective criterion where an evaluation is made regarding the demands that are put on employees, responsibilities, strain, ability, and working conditions, so that jobs or positions can be evaluated as equal or equally valuable. The data needs to contain a wage analysis, based on the job classification and needs to reveal an average of fixed monthly payments for day work, fixed additional wages, and all other additional payments sorted by sex/gender. Companies and institutions need to present the outcome of the pay analysis regarding the gender wage gap to their employees and ensure that the outcome is accessible to staff. Here protection of personal information needs to be considered. A strategy needs to be put forward for improvements where they are needed. Finally, a summary from a manager or an executive (the person who holds the highest status in the company or institution) that detail the findings of the before mentioned data needs to accompany the application for an equal pay confirmation.

The Directorate of Equality will evaluate if the application upholds the conditions of the laws. If the result is that the provided data is insufficient at any level, the company or institution is given the option to make improvements. If it is thought to uphold the conditions the company is granted an equal pay confirmation. The confirmation needs to be renewed every three years.

The companies that are granted an equal pay confirmation are not permitted to use the equal pay label. That is reserved for companies or institutions that have received an equal pay certificate and authorization from the Directorate of Equality to do so.

Also, if a company or an institution neither receives an Equal Pay Confirmation or an Equal Pay Certificate, the Directorate of Equality is permitted to apply daily fines.

 

Equal Pay Confirmation

A written statement from the Directorate of Equality, granted to a company or institution that in principle employs 25 to 49 employees per annum, following the company’s or institution’s submission of documentation showing that the company’s or institution’s equal pay system and its implementation fulfil the requirements set out in Article 8(2).

Equal Pay Certification

A written statement from the certifying body, which is provided with the equal pay certificate, following the certifying body’s audit of a company’s or institution’s equal pay system, in which it is stated that the equal pay system and its implementation meet the requirements of the ÍST 85:2012 standard, in keeping with Article 1c of that standard.

 Pay

Ordinary remuneration for work and further payments of all types, direct and indirect, whether they take the form of perquisites or other forms, paid by the employer to the employee for their work.

 Specialized operations

Special temporary measures that are intended to improve the position of, or increase the opportunities of, women or men, aimed at establishing gender equality in a specific field where there is a gender imbalance. In such cases it may prove necessary to give either gender temporary priority in order to achieve balance. This includes special temporary measures intended to improve the position of, or increase the opportunities of, persons in fields where they are at a disadvantage due to a gender-neutral registration in Registers Iceland, for the purpose of promoting equal treatment.