Gender composition of management – updated guidelines
The Danish Business Authority has published updated guidelines on target figures and policies for the gender composition of management and for reporting on this issue.
Based on a political wish to promote a more equal gender distribution in management and create more transparency about work with the underrepresented gender, Parliament adopted a bill in spring 2022. The amendment strengthens the current rules and introduces a number of new initiatives for large companies. It entered into force on 1 January 2023.
Based on the amendment, the Business Authority has now published updated guidelines on target figures and policies for the gender composition of management and for reporting on this issue. The guidelines are an important tool in companies’ work with target figures and policies for the gender composition of management.
Target figures and policies for other levels of management
Under the previous rules, large companies had to set target figures for the proportion of the underrepresented gender in the top management body (i.e., the board of directors) of the company and establish a policy to promote the underrepresented gender at other management levels.
With the amendment, target figures must now also be set for the other management levels if the company has had an average of 50 full-time employees or more in the previous financial year. The amendment clarifies that the other management levels consist of the two management levels below the top management body: the first level will usually be the executive board, and the second level will be individuals with personnel responsibilities reporting directly to the first level of management (i.e., the executive board).
In addition, according to the amendment, businesses must set a higher target figure for the underrepresented gender when they reach the defined target. New target figures must be set when the time horizon for the target figures expires and until a gender balance of 40/60% has been achieved.
The enhanced requirements also extend the reporting requirements for target figures and policies to include a range of new information and key figures, including the main actions taken by the company to meet the target figures.
The report must be included in the company’s management report when the annual report is published, and it is no longer sufficient for it to be available on the company’s website. In addition, it is no longer possible to adopt overall targets and policies for a group as a whole. Therefore, each company in the group must set its own target figures and establish its own policy, which must be published in the company’s own management report.
The Business Authority’s updated guidelines
When setting target figures, businesses must take into account the circumstances in each business or industry at the time the target figures are set. In addition, the target figures must be ambitious and realistic, and it is thus emphasised that they are not quotas.
In addition, the guidelines clarify that companies should avoid setting long-term deadlines for achieving the target figures. For example, they state that a target of 10% of the underrepresented gender within a period of 3 years is preferable to a target of 40% within a period of 15 years. The time horizon for achieving the target for the top management body should be set at a maximum of 4 years.
The reporting in the annual report should, as a general rule, take the form of a single statement and not be given in several places in the management report.
The new enhanced rules entered into force on 1 January 2023, and the guidelines of the Business Authority indicate that the target figures must be established at the latest at the first board meeting after 1 January 2023. The strengthened reporting requirements will apply in connection with the preparation of the annual report from 2023.
The Business Authority’s updated guidelines (in Danish) can be found here
The content of the above is not, and should not be a substitute for legal advice.
New guidelines on data protection in employment relationships
The Data Protection Agency has issued revised guidelines on data protection in employment relationship.
The European Parliament adopts proposed directive on pay transparency
The proposed directive, which is aimed at ensuring equal pay for men and women, is awaiting adoption by the Council of the European Union.
Amendment to the rules on recruitment of foreign workers adopted
The Danish Parliament recently adopted an amendment to the Aliens Act to make it easier to recruit workers from countries outside the EU/EEA.
Bill on preventing and tackling sexual harassment
The Ministry of Employment recently introduced a bill aiming to implement parts of the tripartite agreement on combatting sexual harassment in the workplace, but the 1 November general election means legislative progress is currently on hold.
To be or not to be a temp
An employee was covered by the Temporary Agency Workers Act even though he was assigned to the same workplace for three years and eight months.
Take time to consider
The Board of Equal Treatment has heard two complaints about whether it was contrary to the Anti-Discrimination Act to refuse to employ candidates with a disability. In the first case, the Board found that the company had met its duty to accommodate; in the other case, the company had not.