What is the Parity Law?
Organic Law 2/2024, or parity law, seeks to guarantee a balanced representation between women and men in Spanish organizations. It adapts the European Directive 2022/2381 on gender balance, expanding its scope beyond listed companies. We are specifically interested in third sector entities (foundations, associations, NGOs, etc.).
Key points of the parity📌 law.
Parity law application requirements
Although it is recommended that all legal entities comply with parity, the law does not apply to all of them. In order for the parity law to apply to them, third sector entities must meet two conditions during the same fiscal year together:
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Parity quotas may be waived when the purpose of the entity justifies it. For foundations, this justification must be included in each year’s Action Plan before the Protectorate.
Impact on the 2030 Agenda
It should be noted that the extension of these obligations beyond listed companies. This demonstrates the legislator’s willingness to promote structural change in Spanish organizations. However, due to the high amounts, it is of little application for most entities.
Even so, Spain intends to take a step forward in the fulfillment of the 2030 Agenda, specifically in its goal number 5. Therefore, it would be correct to anticipate the trend of good organizational practices where a diverse and inclusive environment is fostered beyond the law.
✅ Advantages for your organization
Although it is not mandatory for the majority, this law serves as a basis for implementing equality policies. For example, an Equality Plan based on the parity law will provide your organization with…
Gender equality obligations and regulations are a reality that permeate the entire economic and social ecosystem. Therefore, working on equality plans allows organizations to survive.
Do you need an Equality Plan? As a WBE certified firm at The Lighthouse Team we will help you to promote best practices, contact us!
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