Italy's Equal Opportunity Code

Overview

Italy's Law 162/2021, officially titled "Modifiche al codice di cui al decreto legislativo 11 aprile 2006, n. 198, e altre disposizioni in materia di pari opportunità tra uomo e donna in ambito lavorativo" (Amendments to the Code referred to in Legislative Decree 11 April 2006, no. 198, and other provisions concerning equal opportunities between men and women in the workplace), represents a significant legislative advancement in the nation's commitment to gender equality in employment. Enacted on November 5, 2021, and entering into force on December 3, 2021, this law primarily amends the existing Legislative Decree 198/2006, known as the "Codice delle Pari Opportunità" (Equal Opportunity Code). The overarching purpose of Law 162/2021 is to address persistent gender disparities in the Italian labor market, particularly focusing on the gender pay gap and promoting women's participation and career progression.

The law was introduced in a context where Italy faced a notable gender employment gap within the European Union, with a female employment rate significantly lower than the EU average and a persistent gender pay differential. Recognizing these challenges, Law 162/2021 was developed in alignment with Italy's National Recovery and Resilience Plan (PNRR), which includes a National Strategy for Gender Equality 2021-2026. This legislative initiative aims to foster a more equitable and inclusive working environment by introducing a series of innovative measures designed to enhance transparency, accountability, and incentivize positive change within companies.

Key innovations brought by Law 162/2021 include a broadened definition of discrimination, a lowered threshold for mandatory biennial gender pay reporting, and the establishment of a groundbreaking "Gender Equality Certification" system. This certification, coupled with a system of incentives and penalties, seeks to encourage companies to actively implement policies that reduce gender disparities in remuneration, career opportunities, and work-life balance. The law also strengthens enforcement mechanisms, making non-compliance with reporting obligations subject to more stringent sanctions, thereby underscoring the government's commitment to achieving tangible progress in gender equality in the workplace.

Definitions

Law 162/2021 significantly refines and expands key definitions within the Equal Opportunity Code (D.Lgs. 198/2006) to provide a more comprehensive framework for combating gender discrimination in the workplace. The concept of "discriminazione diretta" (direct discrimination) is broadened to explicitly include discriminatory practices against "le candidate e i candidati, in fase di selezione del personale" (female and male candidates during the personnel selection phase). This ensures that protection against gender-based discrimination extends beyond current employees to individuals seeking employment, covering all stages of the employment relationship from recruitment. Direct discrimination is defined as any provision, criterion, practice, act, agreement, or behavior, including an order to perform such an act or behavior, that produces a prejudicial effect by discriminating against workers based on their sex, or any less favorable treatment compared to another worker in a similar situation.

The law also provides a more expansive definition of "discriminazione indiretta" (indirect discrimination). It now includes any apparently neutral provision, criterion, practice, act, agreement, or behavior, "compresi quelli di natura organizzativa o incidenti sull'orario di lavoro" (including those of an organizational nature or affecting working hours), that places or may place workers of a particular sex in a position of particular disadvantage compared to workers of the other sex. This expanded definition acknowledges that seemingly neutral policies can have a disproportionate negative impact on one gender, particularly concerning work-life balance and care responsibilities. Furthermore, the law explicitly states that any treatment or modification of working conditions and hours that, due to sex, age, personal or family care needs, pregnancy, maternity, or paternity (including adoptive), places or may place a worker in a disadvantageous position, limits opportunities for participation in company life or decisions, or restricts access to career advancement mechanisms, constitutes discrimination.

While the law does not explicitly define "lavoro di pari valore" (work of equal value) or "retribuzione" (remuneration) in new articles, it operates within the existing framework of D.Lgs. 198/2006, which prohibits direct and indirect pay discrimination for the same work or work of equal value. The biennial report requirements, however, mandate detailed reporting on "retribuzione complessiva" (total remuneration), "componenti accessorie del salario" (accessory components of salary), "indennità, anche collegate al risultato" (allowances, including performance-related ones), "bonus" and "ogni altro beneficio in natura ovvero di qualsiasi altra erogazione" (any other benefits in kind or other disbursements). This comprehensive approach to defining remuneration ensures that all forms of compensation are considered when assessing pay equity, moving beyond basic salary to include all elements that contribute to a worker's total earnings, thereby providing a robust basis for identifying and addressing the gender pay gap.

Covered Employers

Law 162/2021 significantly expands the scope of employers subject to mandatory gender pay reporting obligations in Italy. Previously, only public and private companies with over 100 employees were required to submit a biennial report on the situation of male and female personnel. The new law lowers this threshold, making the submission of this report mandatory for all public and private companies that employ more than 50 employees. This change dramatically increases the number of companies subject to these transparency requirements, reflecting a broader commitment to monitoring and addressing gender disparities across a larger segment of the Italian economy. The obligation applies to the company as a whole, encompassing all its production units and dependencies, and also specifically for each production unit with more than 50 employees.

For companies with up to 50 employees, the submission of the biennial report is voluntary. While not mandatory, this voluntary option encourages smaller businesses to engage in self-assessment and transparency regarding their gender equality practices. This inclusive approach recognizes that gender disparities can exist in companies of all sizes and provides a mechanism for smaller entities to contribute to the national effort to promote equal opportunities. Furthermore, the law clarifies that companies with legal headquarters abroad are also required to submit the report if they have one or more offices, dependencies, or production units in Italy that collectively employ more than 50 employees. In such cases, a single report covering all employees in Italy must be submitted.

There are no specific sector-based exemptions from these reporting obligations; the law applies broadly to both public and private sectors. The focus is on the number of employees, ensuring that a wide range of economic activities are covered. The introduction of the Gender Equality Certification (Certificazione della Parità di Genere) is voluntary for all companies, regardless of size, though it offers significant incentives. This dual approach—mandatory reporting for larger entities and voluntary certification with benefits for all—aims to create a comprehensive framework for promoting gender equality, encouraging compliance through both regulatory obligations and positive reinforcement. The law's provisions are designed to be phased in, with specific deadlines for report submission and the ongoing development of the certification system, ensuring a structured implementation process.

Employee Rights

Law 162/2021 strengthens employee rights by enhancing transparency and providing clearer pathways for addressing gender discrimination. A crucial aspect of this is the right of employees and their union representatives (RSA/RSU) to access the biennial report on the situation of male and female personnel. This access is designed to be facilitated while respecting personal data protection, allowing workers to review aggregated data on employment, remuneration, and career progression within their company. The ability to consult this report is vital for employees to identify potential disparities and gather evidence, which can be instrumental in pursuing legal action if they believe they have experienced discrimination.

The law explicitly broadens the definition of discrimination to include candidates during the selection process and encompasses organizational practices or working time arrangements that may disadvantage one sex. This expansion of the definition provides a stronger legal basis for employees to challenge a wider range of discriminatory behaviors, ensuring that protection extends to all phases of employment, from recruitment to career advancement. Workers who believe they have been subjected to direct or indirect discrimination, as defined by the updated Code, can seek judicial protection. The enhanced transparency provided by the biennial reports is intended to support such claims by making it easier to demonstrate systemic disparities.

While Law 162/2021 itself does not grant an individual right for an employee to demand to know the specific remuneration of colleagues performing similar duties, the access to the aggregated data in the biennial report serves a similar purpose by allowing for comparison and identification of pay gaps. The law also reinforces the role of the Consigliera/e di Parità (Equality Advisors) at national and regional levels, who are tasked with monitoring the application of equal opportunity legislation and supporting workers in cases of discrimination. These advisors can provide guidance and assistance to employees seeking to exercise their rights, including filing complaints and navigating legal procedures. The overall framework aims to empower employees by providing them with more information and stronger legal grounds to challenge gender-based discrimination and promote pay equity within their workplaces.

Pay Transparency Requirements

Law 162/2021 significantly bolsters pay transparency in Italy, primarily through enhanced requirements for the biennial report on the situation of male and female personnel. This report, now mandatory for companies with over 50 employees, must include detailed information on remuneration, moving beyond basic salary to encompass all components of compensation. Specifically, companies are required to report on the "importo della retribuzione complessiva corrisposta, delle componenti accessorie del salario, delle indennità, anche collegate al risultato, dei bonus e di ogni altro beneficio in natura ovvero di qualsiasi altra erogazione" (amount of total remuneration paid, accessory components of salary, allowances, including performance-related ones, bonuses, and any other benefits in kind or other disbursements) for each worker. Crucially, these data must be disaggregated by sex, but without indicating the identity of individual workers, thereby balancing transparency with privacy protection.

The law does not introduce explicit requirements for salary range disclosure in job postings or the publication of pay scales in a general sense. However, the detailed remuneration data collected in the biennial reports, combined with information on contractual classification, job function, and distribution of full-time/part-time contracts, provides a comprehensive overview of pay structures within the company. This aggregated data, accessible to employees and union representatives, serves as a powerful tool for internal pay transparency, enabling workers to assess potential gender pay gaps for comparable roles or work of equal value. The Ministry of Labour and Social Policies is responsible for publishing the electronic model for these reports and providing guidelines for their compilation, ensuring standardization and clarity in reporting.

While Law 162/2021 focuses on internal reporting, it is important to note the broader international context. The European Union's Directive 2023/70 on pay transparency, which member states must transpose by June 7, 2026, will introduce more direct pay transparency measures, including the right for job applicants to receive information about the initial pay range for a position and the right for employees to request information on average pay levels, broken down by gender, for categories of workers doing the same work or work of equal value. This upcoming EU directive will further enhance pay transparency requirements in Italy, complementing the existing framework established by Law 162/2021 and potentially introducing obligations for salary range disclosure in job advertisements, which are not currently mandated by the Italian law.

Reporting & Audit Obligations

Law 162/2021 significantly modifies and strengthens the reporting obligations for companies in Italy, particularly concerning gender equality in the workplace. The biennial report on the situation of male and female personnel, previously required for companies with over 100 employees, is now mandatory for all public and private companies employing more than 50 individuals. This report must be submitted every two years, with the regular deadline set for April 30 of the year following the end of each biennium. For instance, the report for the 2022-2023 biennium would typically be due by April 30, 2024. The report must cover the entire company, including all its production units and dependencies, and also provide specific data for each production unit with over 50 employees.

The content requirements for the biennial report are comprehensive, aiming to provide a detailed picture of gender distribution and treatment within the company. It must include data and information related to: the number of male and female employees, including those hired during the year and female employees in a state of pregnancy; their professional distribution within the organization; the distribution of full-time and part-time contracts; the differences in initial remuneration between male and female workers; the contractual classification and function performed by each employee; the total remuneration paid, including accessory components, allowances, bonuses, and any other benefits in kind; selection and recruitment processes; criteria for career advancement; procedures for access to professional qualification and managerial training; measures to promote work-life balance; and diversity and inclusion policies. All data must be disaggregated by sex but must not identify individual workers, ensuring privacy.

The reports must be prepared and submitted exclusively in electronic format through a dedicated platform on the Ministry of Labour and Social Policies' institutional website. Once submitted, the system issues a receipt confirming correct compilation. The reports are then transmitted to the company's union representatives (RSA/RSU). The Ispettorato Nazionale del Lavoro (National Labour Inspectorate - INL) is responsible for verifying the veracity and completeness of these reports. In cases of incomplete or mendacious reports, the INL can impose administrative monetary sanctions. Furthermore, the Consigliera/e di Parità (Equality Advisors) at regional and national levels access these data to monitor the application of equal opportunity legislation and evaluate its effects. The law also introduces the Gender Equality Certification, which is a voluntary audit process conducted by accredited certification bodies based on the UNI/PdR 125:2022 standard, evaluating six key areas including pay equity.

Governance & Enforcement Bodies

The enforcement and governance of Italy's Equal Opportunity Code, as amended by Law 162/2021, involve several key institutional bodies at both national and regional levels. Central to this framework is the **Ministero del Lavoro e delle Politiche Sociali** (Ministry of Labour and Social Policies), which plays a pivotal role in defining the modalities for the biennial gender pay reports and hosts the online platform for their submission. The Ministry, in concert with the Minister delegated for Equal Opportunities, provides operational guidelines for the compilation of these reports, ensuring consistency and clarity across all reporting entities.

The **Consigliera o il Consigliere Nazionale di Parità** (National Equality Advisor) is a crucial independent body responsible for monitoring the application of equal opportunity legislation. This advisor presents a biennial report to Parliament on the results of monitoring the legislation's application and evaluating the effects of the Code's provisions. The National Advisor also receives data from regional advisors and the Ministry, contributing to a comprehensive national overview. Complementing this national role are the **Consigliere e i Consiglieri Regionali di Parità** (Regional Equality Advisors), who access the data from reports submitted by companies within their respective territories. They elaborate on these results and transmit them to the National Advisor, the Ministry of Labour, the Department for Equal Opportunities, the National Institute of Statistics (ISTAT), and the National Council for Economy and Labour (CNEL). These regional advisors also play a direct role in supporting workers and investigating complaints of discrimination.

Enforcement and verification of compliance are primarily carried out by the **Ispettorato Nazionale del Lavoro** (National Labour Inspectorate - INL). The INL is tasked with verifying the veracity and completeness of the biennial reports. In cases of non-compliance, such as failure to submit a report or submitting a mendacious or incomplete one, the INL is authorized to apply administrative sanctions. For the voluntary Gender Equality Certification, **Organismi di certificazione accreditati** (Accredited Certification Bodies) are responsible for assessing companies against the UNI/PdR 125:2022 standard and issuing the certification. These bodies operate under the oversight of the **Dipartimento per le Pari Opportunità della Presidenza del Consiglio dei Ministri** (Department for Equal Opportunities of the Presidency of the Council of Ministers), which also plays a role in promoting the certification system and defining its parameters. The complaint filing process for individuals typically involves contacting the regional equality advisors or relevant trade unions, who can then initiate investigations or support legal action.

Monitoring & Evaluation

The monitoring and evaluation framework for gender equality in the Italian workplace, significantly enhanced by Law 162/2021, is multi-faceted, involving regular reporting, inspections, and a dedicated certification system. A cornerstone of this framework is the biennial report on the situation of male and female personnel, which companies with over 50 employees are legally obliged to submit. This report serves as a primary data source for monitoring trends in employment, remuneration, career progression, and work-life balance policies, disaggregated by gender. The data collected through these reports are crucial for identifying areas where gender disparities persist and for evaluating the effectiveness of implemented policies.

The **Consigliera o il Consigliere Nazionale di Parità** (National Equality Advisor) plays a central role in the evaluation process by presenting a comprehensive report to Parliament every two years. This report synthesizes the findings from the biennial company reports, along with other relevant data, to assess the overall application of equal opportunity legislation and the impact of the Code's provisions. Regional Equality Advisors also contribute to this monitoring by elaborating on the results from companies within their territories and transmitting them to national bodies. This hierarchical reporting structure ensures that both granular and aggregated data are analyzed to provide a holistic view of gender equality progress across the country.

Inspection procedures and complaint investigations are primarily handled by the **Ispettorato Nazionale del Lavoro** (National Labour Inspectorate - INL). The INL is explicitly tasked with verifying the veracity and completeness of the biennial reports submitted by companies. This involves auditing the reported data against company records to ensure accuracy and prevent fraudulent reporting. In addition to report verification, the INL investigates complaints of discrimination, drawing upon the expanded definitions of direct and indirect discrimination introduced by Law 162/2021. The Gender Equality Certification system, while voluntary, also incorporates monitoring and evaluation. Companies that obtain this certification are subject to annual monitoring and biennial verification by accredited certification bodies to ensure continuous adherence to the UNI/PdR 125:2022 standard, which includes criteria for pay equity, career opportunities, and work-life balance. This continuous assessment mechanism for certified companies further contributes to the overall monitoring and evaluation of gender equality practices in the Italian corporate landscape.

Enforcement & Penalties

Law 162/2021 significantly strengthens the enforcement mechanisms and introduces more stringent penalties for non-compliance with gender equality obligations, particularly concerning the biennial reporting requirements. For companies that fail to transmit the mandatory biennial report on the situation of male and female personnel within the prescribed deadlines, the Direzione Regionale del Lavoro (Regional Labour Directorate) will first invite them to comply within sixty days. If the company still fails to submit the report after this grace period, an administrative sanction ranging from €103 to €516 will be applied. Furthermore, if the non-compliance persists for over twelve months, the law mandates the suspension for one year of any contributory benefits the company may be enjoying. This automatic suspension of benefits represents a significant escalation of penalties, underscoring the seriousness of the reporting obligation.

Beyond mere non-submission, the law also addresses the issue of inaccurate or misleading reporting. The **Ispettorato Nazionale del Lavoro** (National Labour Inspectorate - INL) is explicitly empowered to verify the veracity of the submitted reports. In cases where a report is found to be "mendace o incompleto" (mendacious or incomplete), an administrative monetary sanction ranging from €1,000 to €5,000 is applied. This penalty aims to deter companies from providing false or insufficient data, ensuring the integrity and reliability of the information used for monitoring gender equality. The INL's role in auditing these reports is crucial for maintaining accountability and ensuring that companies accurately reflect their gender employment situation.

While Law 162/2021 primarily focuses on administrative and financial penalties for reporting non-compliance, it operates within the broader framework of the Equal Opportunity Code (D.Lgs. 198/2006), which provides for judicial remedies in cases of discrimination. Workers who believe they have suffered direct or indirect discrimination, as defined by the updated law, can pursue legal action. The enhanced transparency provided by the biennial reports, which are accessible to union representatives and employees (with privacy safeguards), can serve as crucial evidence in such legal proceedings. The law does not introduce new criminal liabilities directly related to pay equity or reporting, but the existing legal framework for discrimination allows for various forms of redress, including compensation for damages. The appeals process for administrative sanctions would follow standard Italian administrative law procedures, allowing companies to challenge penalties through the appropriate administrative and judicial channels.

Relationship to Other Laws

Law 162/2021 is not a standalone piece of legislation but rather a set of significant amendments to Italy's existing **Decreto Legislativo 11 aprile 2006, n. 198** (Legislative Decree 11 April 2006, no. 198), commonly known as the "Codice delle Pari Opportunità tra uomo e donna" (Equal Opportunity Code between Men and Women). This means that Law 162/2021 directly integrates into and modifies the foundational legal framework for gender equality in the workplace, rather than creating a parallel system. The amendments primarily update and strengthen provisions related to the definition of discrimination, reporting obligations, and the introduction of new tools like the Gender Equality Certification.

The law also interacts with other key national policies and legislative instruments. Notably, it is closely linked to the **Piano Nazionale di Ripresa e Resilienza (PNRR)** (National Recovery and Resilience Plan) and the **Legge di Bilancio 2022 (Law 234/2021)** (Budget Law 2022). The PNRR specifically allocated funds for the implementation of the Gender Equality Certification system, recognizing its importance for Italy's broader economic and social recovery goals. The Budget Law 2022 further supported this by providing additional funding for the certification and its associated incentives, such as contributory exemptions for certified companies. This demonstrates a concerted effort at the national level to integrate gender equality objectives into broader economic and development strategies.

Furthermore, Law 162/2021 has implications for public procurement. The **Nuovo Codice dei Contratti Pubblici (Decreto Legislativo 31 marzo 2023, n. 36)** (New Public Contracts Code, Legislative Decree 31 March 2023, no. 36) includes provisions that grant preferential scores or reduced guarantees to companies holding the Gender Equality Certification when participating in public tenders. This creates a direct link between a company's commitment to gender equality and its competitiveness in securing public contracts, providing a strong incentive for compliance and certification. In terms of precedence, as an amending law, Law 162/2021's provisions supersede any conflicting articles within the original D.Lgs. 198/2006. The law also complements existing anti-discrimination legislation and constitutional principles, such as Article 37 of the Italian Constitution, which enshrines the principle of equal pay for equal work. The overall aim is to create a more coherent and robust legal framework for promoting gender equality in the Italian labor market.

International Context

Italy's Law 162/2021 is deeply embedded within a broader international and European framework for promoting gender equality and pay equity. The law aligns with the principles enshrined in key international labor standards, such as the **ILO Convention No. 100 on Equal Remuneration (1951)** and **Convention No. 111 on Discrimination (Employment and Occupation) (1958)**, both ratified by Italy. These conventions advocate for equal remuneration for men and women for work of equal value and the elimination of discrimination in employment. Law 162/2021's focus on comprehensive pay reporting, expanded definitions of discrimination, and the introduction of a gender equality certification system directly contributes to fulfilling these international commitments. The law also reflects global trends towards greater corporate social responsibility and the integration of Environmental, Social, and Governance (ESG) criteria into business practices, with gender equality being a critical social dimension.

At the European level, Law 162/2021 is particularly relevant in the context of the **European Union's commitment to gender equality**. It anticipates and complements the forthcoming **EU Directive 2023/70 on Pay Transparency**, which member states are required to transpose into national law by June 7, 2026. While Law 162/2021 primarily focuses on internal reporting and a voluntary certification system, the EU Directive will introduce more explicit requirements, such as the right for job applicants to receive information about the initial pay range and the obligation for employers to provide information on average pay levels, broken down by gender, for categories of workers doing the same work or work of equal value. The Italian law's emphasis on detailed remuneration data in biennial reports and the certification's focus on pay equity already lay a strong foundation for the effective implementation of the EU Directive, demonstrating Italy's proactive approach to addressing the gender pay gap.

The law's introduction also responds to Italy's specific position within the EU regarding gender equality indicators. Despite constitutional guarantees of equal pay, Italy has historically faced a significant gender employment gap and persistent pay disparities. The Global Gender Gap Index 2021, for instance, placed Italy relatively low in overall gender equality, particularly in economic participation and opportunity. Law 162/2021, therefore, represents a concerted national effort, supported by the EU's National Recovery and Resilience Plan (PNRR), to accelerate progress in these areas. By introducing robust reporting mechanisms, clear definitions of discrimination, and a system of incentives for gender equality certification, Italy aims to not only comply with but also actively promote the highest standards of gender equality in the workplace, contributing to a more equitable European labor market.

Implementation Timeline

Compliance Checklist

Sources and References