The upcoming revolution in remuneration structures and policies

We have prepared an alert on Directive (EU) 2023/970 of the European Parliament and of the Council on strengthening the application of the principle of equal pay for equal work or work of equal value for men and women through pay transparency mechanisms and enforcement mechanisms, which should be implemented by Member States by 7 June 2026.

It represents a revolution in the requirements for pay structures, a significant lifting of the veil of confidentiality, the introduction of additional obligations for employers and the possibility for employees to pursue discrimination claims.

For this reason, we believe that employers should take an interest in the anticipated requirements by properly auditing the applicable remuneration structures, policies and company practices, as well as diagnosing possible problems and risks. All this will help you make better use of the time to prepare the necessary actions and gradually introduce changes – it is not worth waiting until the last moment, if only because of their systemic complexity.