France to fine firms that fail to end gender wage gaps

Reuters PARIS (Reuters) — French companies will have three years to erase their gender pay gaps or face possible fines under plans presented by Prime Minister Edouard Philippe on Wednesday to unions and employers.

Men are on average paid nine percent more than women in France, even though the law has required equal pay for the same work for the past 45 years, the government said.

Under the plans, companies with more than 50 employees will be required to install special software hooked up directly to their payroll systems to monitor unjustified pay gaps.

The aim was to roll out the software in companies with more than 250 employees next year and in 2020 for companies with 50 to 249 workers.

If a company fails to erase a pay gap detected by the software over three years, labor inspectors could impose a fine of up to 1 percent of the firm’s wage bill.Speech

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