In Italy the Golfo-Mosca law requires that 40% of the boards of listed companies are made up of the underrepresented sex. But that’s not all. Here’s everything a company needs to know to comply with gender equality laws
Raviele: “In Italy, as in Europe, the principle of gender equality has historic origins. The first source is the Italian Constitution, which in Article 37 establishes the principle of equal pay for equal work”
Public and private companies with more than 50 employees are required to draw up a periodic report on the breakdown of male and female personnel to be sent by 30 April every two years.
Italy, according to data collected by Chiara Torino (partner of Toffoletto De Luca Tamajo interviewed by We Wealth), ranks among the top six countries in the European Union in terms of the presence of women on the boards of listed companies. This is thanks to the entry into force in 2011 of the Golfo-Mosca law, which initially required the presence of 30% of the “underrepresented sex” within the boards of directors and which was subsequently raised to 40% with Italian Law No 160/2019. However, when you go down the rungs of the hierarchical ladder, the gaps tend to widen: Istat data show that women managers represent just 27% and those who hold the role of CEO are close to 3%. After publishing the European map of the new rules on gender equality, let’s look at everything Italian companies should know to comply with gender equality laws. And the incentives available for the most compliant.
Biennial Staff Report: who should write it
“In Italy, as in Europe, the principle of gender equality has historic origins”, says Stefania Raviele, salary partner at De Luca & Partners. “The first source is the Constitution, which in Article 37 establishes the principle of equal pay for equal work. When we talk about gender equality, we obviously refer to the Italian Equal Opportunities Code which has recently been amended by Italian Law No 162/2021 issued to continue the path towards gender equality, a European objective also included in the National Recovery and Resilience Plan”. The law introduces numerous new initiatives, continues Raviele. First of all, it amended Article 2 of the Italian Equal Opportunities Code by extending the cases of direct and indirect discrimination also to protect candidates during the selection of personnel and also expanding the concept of discrimination by including not only any treatment but also any change in working conditions and times. The law also amended the biennial report on the breakdown of male and female personnel governed by Article 40 of the Italian Equal Opportunities Code, lowering the size threshold for companies required to draw it up (i.e., public and private companies with more than 50 employees, editor’s note) and setting out further details on its required content.
Gender certification: incentives for companies
“The big news, however, is the introduction of gender certification. This is a voluntary certification that the most compliant companies can request and the obtaining of which brings with it advantages: both direct, such as access to incentives and tax relief; and indirect, such as the increase in brand reputation and organisational well-being which then translates into an increase in productivity”, observes Raviele. Specifically, adds Torino, the certification must be drawn up according to the practice reference UNI / PdR 125: 2022 of 16 March 2022 . The “equality bonus” for compliant companies consists of an exemption from contributions to the extent of 1% with the maximum limit of EUR 50,000 and a bonus score in the evaluation of any projects for the purpose of granting state aid and awarding of public contracts. “The really interesting aspect of this initiative is actually the path that companies are called to take to obtain the certification”, says Raviele. “The goal is to achieve a change in organisational culture, truly marked, in every single process, by a policy for gender equality. This is a challenge that is currently attracting interest. What the real effects will be, however, we can only assess in the long term”.
Golfo-Mosca law on “pink quotas”: obligations and sanctions
“Since 2011, our country has also introduced the obligation of so-called pink quotas for women on the boards of directors of listed companies”, adds Torino. “To date, the combined provisions of Italian Law No 120/2011 (the Golfo-Mosca Law), of the Decree of the President of the Italian Republic No 251/2012 and, finally, of Italian Law No 160/2019 (2020 Budget Law), establish that the boards of directors of listed companies must be at least two-fifths women and the boards of directors of public companies at least one third of women“. Failure to comply with regulatory obligations can give rise to financial penalties (subject to warning) and, in the event of persistent non-compliance, the dismissal of the entire elected body is ordered.
The full version can be accessed at We Wealth.
