Breaking News: Cassation Rules on Salary Equality and Economic Treatment
Rome, Italy – June 19, 2023 – In a groundbreaking ruling, the Italian Court of Cassation has clarified its stance on salary equality among colleagues, setting the stage for new economic treatment and disciplinary rules in the workplace.
Key Salary Principles Reinforced
The Cassation has reaffirmed that the right to a salary is primarily governed by the principles of proportionality and sufficiency, as outlined in Article 36 of the Italian Constitution. According to the ruling, salaries must be sufficient to guarantee a free and dignified life for workers and their families.
The decision reinforces principles already established by collective labor agreements. Salaries are first determined by collective agreements that unions negotiate with employers, setting minimum wages for various sectors. If no such agreements exist, individual contracts take over.
Non-Equal Treatment for Equality of Remuneration
One of the most significant aspects of the ruling has to do with the treatment of salaries among colleagues performing identical tasks. The Cassation has ruled that economic treatment must not be identical. Instead, employers can pay differently based on objective and neutral criteria such as specialization, performance, and skill levels.
A worker who filed a complaint about receiving a lower salary for 15 months despite doing the same job saw their claim rejected. The court underscored that while collective agreements establish minimum wages, employers can recognize higher salaries for specialized or better-performing employees.
EU Directive Impact
The European Union Directive 970/2023, set to be implemented by June 2026, will significantly impact salary systems. It mandates transparency and strengthens the prohibition of salary discrimination based on gender. Companies will be required to provide written information on individual and average salary levels divided by gender for equivalent roles.
This directive aims to create wage parity by obliging employers to justify salary discrepancies based on objective and neutral criteria.
Disciplinary Rules for Colleagues
The Cassation has also set guidelines for disciplining employees, allowing different sanctions for the same infraction based on job roles, responsibilities, seniority, extent of involvement, and cooperation during procedures.
Employers can justify differential treatment but must ensure their criteria are objective and fair.
Evergreen Insights and Future Implications
The ruling not only addresses current issues but also provides a framework for the EU Directive’s requirements. Companies are urged to ensure salary transparency and fair treatment, reducing the likelihood of disputes and litigation.
Employees need to be aware of their rights and the factors influencing salary determination, while also recognizing the possibilities for even wage distribution through skill development and improved performance.
For more in-depth insights and practical tips on navigating these changes, stay tuned to archyde.com. We are committed to providing up-to-date information and expert advice on labor laws and workplace policies.
