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Author:
Olga Galindo.
Salary record vs. confidentiality
The salary record is a key tool for advancing equal pay for men and women. However, a recent Supreme Court ruling has clarified that companies must comply with this obligation while respecting the privacy of their employees. This poses a dilemma: how to guarantee the transparency required by law without exposing sensitive personal data? The solution is to create and maintain an up-to-date salary record that complies with legal requirements and protects confidentiality.
What do the regulations say about the salary record?
Article 28 of the Workers’ Statute obliges companies to keep a salary record disaggregated by sex, including average salary values. The aim is to detect possible inequalities in remuneration between men and women.
However, the recent Supreme Court ruling sets a clear limit: salary records must not include data that allows workers to be identified individually, especially in groups or positions where there is only one employee. This protects the privacy of employees and avoids potential legal conflicts.
The dilemma: transparency vs. privacy
This Supreme Court ruling poses a challenge for many companies: How to comply with transparency requirements without infringing on employees’ rights?
The problem arises mainly when records are managed manually or without a clear structure. The lack of a system that ensures proper handling of salary data can lead to errors or even improper sharing of information that compromises the privacy of employees.
In addition, some HR managers may feel pressured by unions to provide more data than is actually required by regulations, increasing the risk of conflict.
The solution: create and maintain an up-to-date salary record.
Creating and maintaining an up-to-date salary record is a legal obligation for all companies, but it is also an opportunity to demonstrate their commitment to pay equity. However, for this register to meet regulatory requirements and be useful in practice, it is essential to follow an orderly and accurate approach that ensures transparency without infringing on employee privacy.
Step 1: Collect salary data in a secure way
The first step is to collect salary data for the entire workforce, making sure it is broken down by gender, professional group and type of compensation (base salary, salary supplements and compensation in kind). The information should be clear and understandable, but should not include data that could identify individual employees.
Tip: Make sure that the information collected is anonymous in the case of single-person positions, to avoid any breach of privacy.
Step 2: Calculate mean and median values
Once the information has been compiled, the regulations require that the salary record includes the mean and median values of salaries for each professional group, broken down by gender.
This makes it possible to detect possible salary differences and to take corrective action in the event that unjustified gaps are identified. It is important to update these values periodically to reflect changes in the company’s salary structure.
Step 3: Break down the data by professional categories
The salary record should show salary data by professional category, group and job. This facilitates a more accurate assessment of whether pay inequalities exist within the company.
If there is only one employee in a group, it is mandatory to protect his or her privacy, avoiding any data that could identify his or her individual remuneration. In such cases, it is better to group the data into broader categories or use aggregate references.
Step 4: Keep the registry updated and accessible
The salary record must be a living tool, updated at least once a year. In addition, it must be available to the workers’ legal representatives and can be consulted in the event of labor inspections.
Updating the salary record on a regular basis not only helps to comply with regulations, but also allows the company to monitor possible salary deviations and correct them before they lead to internal conflicts or legal sanctions.
Step 5: Document equal pay measures
The salary record is only part of the company’s commitment to equal pay. It is recommended that this record be accompanied by an equal pay plan, detailing the measures the company is taking to reduce any pay gap identified.
By documenting these measures, the company demonstrates proactivity in the pursuit of equality, which also reinforces its image in the eyes of employees, customers and regulatory bodies.
The Supreme Court ruling reinforces the need to balance transparency and privacy in salary records. Companies must comply with regulations, but always protect their employees’ personal data. Keeping an updated salary record not only facilitates legal compliance, but also helps to avoid risks and conflicts in the management of compensation information.
👉 Do you have doubts about how to manage the salary record in your company? In Cigarrán Abogados we advise you to comply with the regulations without putting at risk the privacy of your employees. Contact us!
¿Do you need help? At Cigarrán Abogados we can help you (+34) 91.355.85.15