Payroll compliance reviews
PRÜFAG Lohnbuchkontrollen AG has specialised in carrying out collective labour agreement (CLA) compliance/payroll examinations and has also been conducting wage equality reviews since 2014. While the joint commissions of the respective collective labour agreements are the recipients of the audit reports for collective labour agreement compliance/payroll examination, the reports for wage equality reviews are addressed to the client companies.
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CLA compliance / payroll examination
In Switzerland, various industries are governed by collective labour agreements (CLAs), that have been negotiated between employer and employee representatives. Upon request by the contracting parties, the Federation or Cantons may declare a CLA as generally binding, provided legal requirements are met. With the declaration of a CLA as legally binding, the scope of a CLA is extended to all employees and employers within the relevant industry and geographical area.
Each CLA stipulates, among other things, how compliance with its provisions is to be ensured. The joint commission, composed of employer and employee representatives, typically commissions an external audit body to verify compliance with the CLA. This auditor prepares a control report addressed to the joint commission, which may impose sanctions in the event of violations. PRÜFAG audits compliance with the provisions of various CLAs. The audit process requires an efficient and targeted approach, as well as extensive experience and knowledge of the specific industries.
Wage equality review
The principle of equal pay for women and men is laid down in the Federal Constitution and the Gender Equality Act. Above all, as part of public procurement procedures, companies are increasingly being asked to comply with the principle of wage equality, otherwise they are not taken into consideration for public procurement orders. Companies can self-assess pay equality using the free Logib tool.
If required (for example, in public procurement), the correct application of this equal pay tool must be verified by an external auditor. In this context, the auditor is often tasked with reviewing the local and industry-specific customary working conditions.
