Equal Pay Analysis
A mandatory internal assessment for larger employers to identify and quantify unexplained gender pay gaps using scientific methods.
Definitions (3)
Introduced by the 2020 amendments, this is a compulsory internal review for employers with 100 or more employees. It requires using a scientific methodology, often supported by the government's 'Logib' tool, to analyze employee-level data and identify any statistically significant pay disparities between genders that cannot be justified by objective, non-discriminatory factors. The analysis must be audited by an independent body.
The Equal Pay Analysis, as mandated by the Swiss Gender Equality Act and its implementing Ordinance, refers to a structured, internal assessment undertaken by covered employers. This analysis aims to identify and quantify any unexplained wage differences between men and women performing work of equal value. It typically involves the use of recognized scientific and statistical methods, such as regression analysis, to account for objective, non-discriminatory factors influencing pay, thereby isolating any gender-based pay disparities. The analysis is a critical component of Switzerland's strategy to promote de facto gender equality in the workplace.
An 'Equal-pay analysis' is an evaluation process undertaken by an employer to assess and rectify wage disparities among employees performing work of comparable character. While not mandatory, conducting such an analysis in good faith, reasonable in detail and scope, and demonstrating substantial progress toward eliminating unlawful wage differentials, serves as a crucial 'safe harbor' defense. If an employer can prove they completed such an analysis within three years before a complaint and made substantial progress, a court must limit awards to two years of back pay and reasonable attorney fees, disallowing compensatory and punitive damages.