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The EU Pay Transparency Directive

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In a bold step forward in tackling and enforcing equal pay, the EU Pay Transparency Directive was published in the Official Journal of the EU on 17 May 2023. This means the Directive will be in force by 7 June 2023 with Member States having three years to transpose it into national law. 

The central plank of the Directive is to introduce gender pay gap reporting measures, similar to those that already exist in the UK. However, the reporting requirements are backed up by powerful enforcement mechanisms, not present in the UK regime. Other key provisions include an obligation to remedy pay gaps of 5% or more and increased pay transparency for prospective and current employees.

Although the Directive (once locally implemented) will only strictly impact EU employers and non-EU employers operating in EU member states, it is likely to raise employees’ expectations regarding pay transparency and pay gaps, and influence the development of future regulation in jurisdictions outside the EU.

Pay Transparency and Equal Pay: The European Landscape

In our client publication, we look at some of the key European jurisdictions and the degree of change that will be required to comply with the Directive’s obligations. Explore the publication to find out more, including which countries should expect the biggest shift in law and practice from the introduction of the Directive. 

Clients can download a copy of the guide here
Pay Transparency and Equal Pay: The European Landscape_ map_image

Listen to ‘Mind the (Gender Pay) Gap’, our bite-sized podcast series, where legal experts from across our global Employment & Incentives team reflect on the current landscape on pay transparency and equal pay in their jurisdiction and consider the impact of the EU Pay Transparency Directive. As businesses begin to navigate the changes required, our experts provide their observations on how employers can start to prepare.

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What does it mean for your organisation?

Explore our key insights and resources

Diversity

Equal value, equal pay: lessons from the Next ET judgment

Equal pay claims are notoriously complex. Such claims often involve multiple hearings, mountains of disclosure and detailed analysis of company pay structures and practices. Add 3,500 claimants to the mix and you could be facing over six years in the tribunal, as demonstrated by the recent Next judgment.

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Paper

What do UK employers need to know?

Overview of the EU Pay Transparency Directive and how, by setting new standards, the Directive will influence the development of future regulation in the UK.

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People

What do EU employers need to know?

Key todo’s with questions and actions to consider to prepare for the implementation of the Directive.

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Coins

EU Pay Transparency Directive published in the OJEU

Member States will have three years to transpose the Directive into national law, so by 7 June 2026. However, companies should start preparing now for the significant changes the rules will bring.

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Gender

European Parliament adopts Pay Transparency Directive: addressing the gender pay gap

In the EU, women would have to wait for nearly 60 years (until 2086) to be remunerated equally. But EU legislators are making changes that might speed up the rate of change. In a nutshell, these are the key provisions of the Directive. 

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Business_colleagues_seen_through_glass_at_office_GettyImages951951120

The upcoming revolution in remuneration structures and policies

Overview of the EU Pay Transparency Directive and how, by setting new standards, the Directive will influence the development of future regulation in Poland.

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