The EU Pay Transparency Directive: key considerations across Europe

What is the current status of national implementation?

France has not yet transposed the Directive into national law. A draft bill was circulated to trade unions and employer organisations on 6 March 2026, followed by a final consultation meeting on 19 March. The government has acknowledged that the 7 June 2026 transposition deadline will not be met. Due to a congested legislative calendar, the bill is unlikely to be adopted before the 2027 presidential election.

The draft bill provides for a deferred entry into force, no later than 12 months after promulgation. Specific deadlines are also foreseen: for example, the obligation to report pay gaps by job category will not apply to companies with fewer than 150 employees until 1 June 2030.

The legislative process remains ongoing. Employers should anticipate a phased implementation from 2027 onwards, with differentiated obligations depending on workforce size.

What are the key obligations for employers in this jurisdiction?

France already enforces the principle of equal pay for equal work or work of equal value (Article L3221-2 of the Labour Code). Since 2019, companies with 50 or more employees have been required to publish an annual Gender Equality Index, based on five indicators. A score below 75/100 for three consecutive years may trigger a financial penalty of up to 1% of total payroll.

The draft bill introduces several new obligations aligned with the Directive:

• Pay transparency at recruitment stage: Employers will be required to disclose the salary or salary range in job advertisements or, at the latest, before the first interview. It will be prohibited to ask candidates about their previous remuneration. Clauses restricting employees from disclosing their own pay will be void.
• Individual right to pay information: Employees will be entitled to request, in writing, information on their own pay and the average pay levels (by gender) for comparable roles. Employers must respond within a statutory timeframe (likely two months) and inform employees annually of this right. Requests may be refused where disclosure would risk identifying another employee.
• New pay transparency indicators: The current Gender Equality Index will be replaced by seven indicators, including average and median pay gaps, variable pay gaps, quartile distribution, and pay gaps by job category. Companies with 250+ employees will report annually; those with 50–249 employees will report some indicators every three years. The most sensitive indicator (pay gaps by job category) will not be made public but must be shared internally with employees and the works council (CSE).
• Redefinition of “work of equal value”: The concept will be broadened to include soft skills and working conditions. Employers must establish a job classification framework grouping roles of equal value, preferably through collective agreement or, failing that, via unilateral decision after consulting the CSE.
• Enhanced role for the CSE: The CSE must be informed (50+ employees) or consulted (100+ employees) on the methodology and results of the indicators. Where pay gaps exceed a defined threshold (5% anticipated), employers must either justify the gap or implement corrective measures within six months.
• Reversal of the burden of proof: In discrimination claims, if an employer fails to comply with transparency obligations, the burden of proof will shift: the employer must demonstrate that the pay gap is not discriminatory. This reversal will not apply where the breach is minor and unintentional.
• Sanctions: Administrative penalties include fines of up to 1% of total payroll (2% for repeat offences) for serious breaches. Fixed fines of €450 (or €900 for repeat offences) may apply for non-compliant job postings, failure to respond to employee requests, or failure to publish required indicators.

What should employers do now to prepare?

Although the law is not yet in force, employers are strongly advised to begin preparations:

• Conduct internal pay audits: Identify unexplained pay gaps and document objective justifications.
• Review recruitment practices: Update job advertisements to include salary ranges; train recruiters to avoid prohibited questions.
• Formalise pay policies: Define and document objective, gender-neutral criteria for base pay, bonuses, promotions and salary progression.
• Classify jobs of equal value: Develop a job evaluation framework, ideally through collective agreement, or unilaterally with CSE consultation.
• Upgrade HR systems: Ensure the ability to generate the seven indicators; update payroll software and the BDESE (economic and social database).
• Prepare for employee information requests: Establish a standardised process, designate responsible teams, and ensure GDPR compliance.
• Engage with the CSE: Share audit findings and integrate the directive into ongoing negotiations.
• Mitigate legal risks: Anticipate potential claims, avoid retaliatory actions, and ensure transparency and consistency in communications.

We would like to thank Ludovic Roche for his contribution towards this article.

What does the EU Pay Transparency mean for employers in Great Britain?

The EU Pay Transparency Directive is driving a significant shift towards greater openness around pay, recruitment practices and gender equality across member states. While the Directive does not apply in Great Britain, its wider influence is already being felt and British employers, particularly those with international operations, should be alert to the practical implications.

No direct legal impact on Great Britain

As Great Britain is no longer part of the European Union, the Directive does not impose any direct, mandatory obligations on British employers in relation to their British operations. No new reporting duties arise under British law, and organisations operating solely within Great Britain will continue to comply with the existing gender pay gap reporting regime that applies to employers with 250 or more employees.

However, the picture becomes more complex for organisations with a footprint in the EU.

The position changes for British employers with EU operations

Where a British organisation has subsidiaries or operations within the EU, those in‑scope entities may fall directly under the Directive. This means the employer may need to comply with the Directive’s detailed requirements for those EU-based operations, including:

• expanded pay transparency obligations;
• mandatory reporting of gender pay data at a more granular level; and
• action obligations if reporting identifies unjustified disparities.

This creates a dual compliance landscape in which the British employer must meet home jurisdiction requirements while navigating a stricter, more expansive EU regime elsewhere in its wider organisation.

Potential indirect impact on British employers

Even where a British employer is not legally required to comply, the Directive is likely to create indirect pressure within the UK labour market.  Employees may increasingly expect the same level of transparency that their colleagues in Europe receive and may lobby for comparable reporting standards. This is particularly relevant for multinational businesses, where workforce comparison across jurisdictions becomes easier and expectations for parity intensify.

The Directive goes further than Great Britain’s gender pay gap regime

Great Britain already has established gender pay gap reporting for larger employers. However, the Directive is significantly more demanding; both in the depth of information required and the consequences where pay inequalities are identified.

While UK reporting focuses on high‑level metrics, the Directive requires:

• more detailed pay reporting;
• transparency throughout the recruitment process;
• strict rules on pay secrecy; and
• joint pay assessments where unjustified gaps exceed set thresholds.

This is a more interventionist framework and may prompt British employers to consider voluntarily aligning certain internal practices to maintain cohesion and meet employee expectations.

A question of harmonisation across the organisation

For multinational organisations, the extent to which they adopt Directive aligned practices in Great Britain will depend on how much harmonisation they seek across their global operations. A unified approach may be attractive:

• to streamline internal processes;
• to support consistent global HR and reward policies;
• to reduce administration; and
• to enhance an organisation’s fairness narrative and employer brand.

Conversely, employers may choose a differentiated approach, applying the Directive’s standards only where legally required. Each model has strategic and cultural implications.

Rising transparency and cross‑border comparisons

Increased openness in EU jurisdictions will inevitably spill over into British workplaces. Employees in Great Britain may gain visibility of colleagues’ pay practices across the EU group and question discrepancies. This could trigger internal pressure to realign pay structures, review job evaluations or accelerate pay audits to mitigate reputational or employee‑relations risks.

Conclusion

While the EU Pay Transparency Directive does not directly apply to Great Britain, its influence will be far-reaching. For British employers with EU operations, full compliance will be required in those jurisdictions, and the broader cultural shift towards pay transparency is likely to drive expectations within the UK workforce.  Even without legal compulsion, the Directive is set to shape conversations around fairness, pay equity and employee relations across British workplaces.

It is also worth noting the direction of travel in Great Britain.  The government has consulted on ethnicity and disability pay gap reporting for large employers and is proposing to embed stronger equal pay protection in the Equality (Race and disability) Bill.  The government has also launched a wide‑ranging call for evidence on equality law, including how best to strengthen pay transparency. Under the Employment Rights Act 2025, employers with 250 or more employees will also be required to develop and publish equality action plans setting out how they intend to address gender inequality.  The provisions are in force on a voluntary basis from 6 April 2026 and on a mandatory basis from spring 2027.   With transparency now firmly in the spotlight, this is an ideal moment for employers to review and refine their pay strategies, ensuring they are robust, defensible and aligned with the direction of future reform. 

Key People

Kate Meadowcroft

Partner // Head of Employment (Birmingham)

United Kingdom

 

Charlotte Lloyd Jones

Professional Support Lawyer

United Kingdom

 

The European Union’s Pay Transparency Directive (EntgTranspRL), adopted on 18 July 2023 and to be implemented by 7 June 2026, will require substantial amendments to the German Pay Transparency Act (EntgTranspG). The reforms will primarily affect the application process, employees’ rights to information, employers’ reporting duties, the introduction of joint pay assessments, and a more stringent sanction system.

What is the current status of national implementation?

In autumn 2025, an Expert Commission was formed to ensure a legally robust and practically workable implementation of the EntgTranspRL. Its mandate was to strengthen the principle of “equal pay for equal work or work of equal value” while keeping administrative burdens manageable for employers. The Commission’s final report, issued in November 2025, sets out key recommendations for the forthcoming Implementation Bill, which is expected to be published shortly.

What are the key obligations for employers in this jurisdiction? Job application process (Art. 5 EntgTranspRL)

The EntgTranspRL introduces a new level of transparency for job applicants. Employers must provide information on the starting salary or salary range for the position, including references to relevant collective agreement provisions. This information must be given early enough to support transparent pre‑contractual salary negotiations. Employers remain prohibited from asking about an applicant’s previous or current pay.

Employee rights to information (Art. 6 EntgTranspRL)

All employees—regardless of the size of the employer—must be informed about the objective, gender‑neutral criteria that determine their pay, pay levels and pay progression. These criteria must be made accessible, though the EntgTranspRL does not prescribe a specific delivery method.

Individual right to information (Art. 7 EntgTranspRL)

Employees will have the right to request written information on their own remuneration and the average pay of employees of the other gender performing the same or equivalent work. Employers must provide this information within two months. Additionally, employees must be informed annually of this right.

Reporting obligations (Art. 9 EntgTranspRL)

Reporting obligations will become significantly more extensive. Instead of a threshold of 500 employees, employers with as few as 100 employees will be required to report regularly from 7 July 2031 every 3 years. Companies with 250 employees will need to report annually beginning 7 July 2027 and companies with 150-249 employees will need to report every 3 years from 7 July 2027. Reports will need to include more detailed data, including gender pay gaps (overall and within variable remuneration), median gaps, the proportion of employees receiving variable pay and disaggregated pay gap information for specific employee groups. Reports must be accessible to employees, employee representatives and supervisory authorities.

Joint pay assessment (Art. 10 EntgTranspRL)

If an unjustified gender pay gap of at least 5% exists within an employee group, employers must conduct a joint pay assessment. In Germany, this will involve works councils or trade unions. The aim is to uncover systemic causes of inequality and ensure structural corrections.

Compensation and remedies (Art. 16 EntgTranspRL)

The EntgTranspRL significantly strengthens employees’ rights to remedies. Employees who suffer gender‑based pay discrimination will be entitled to full compensation, including back pay, bonuses, benefits, lost opportunity damages and non‑material damages.

Burden of proof (Art. 18 EntgTranspRL)

The EntgTranspRL shifts the burden of proof to the employer once employees present facts that suggest possible pay discrimination. This reversal will also apply in situations where employers fail to meet the transparency obligations under Arts. 5, 6, 7, 9 and 10 EntgTranspRL. Only minor and unintentional breaches are exempt.

Sanctions (Art. 23 EntgTranspRL)

Member States must implement sanctions that are effective, proportionate and dissuasive. These may include substantial fines based on annual turnover or total payroll. Employers violating the EntgTranspRL may also face disadvantages in public procurement processes.

What should employers do now to prepare?

Given the broad reform agenda of the EntgTranspRL, employers should begin preparing ahead of implementation. This preparation includes monitoring legislative developments, collecting and structuring pay data, reviewing remuneration systems, analysing gender pay gaps and reassessing collectively agreed pay structures. Employers should also prepare relevant templates, train HR and management teams, document application and negotiation processes and establish reporting and transparency procedures. When designing or revising remuneration systems, organisations should already anticipate compliance with the future standards set by the EntgTranspRL.

Key People

Thorsten Kühnel

Rechtsanwalt – Partner // Certified Lawyer for Employment Law

Germany

 

What is the current status of national implementation?

The Irish government has confirmed it will miss the 7 June 2026 EU deadline for implementation of the EU Pay Transparency Directive ("the Directive") and will adopt the pay transparency rules in stages.  In early 2026, the Department responsible for the Directive confirmed that employers “will not be penalised” for not having all measures in place by June 2026, given the planned phased implementation.

Under the Gender Pay Gap Information Act 2021 some elements needed for the implementation of the Directive, are already in place. However, many aspects remain unclear and will require further  legislation.

The Department had published the general scheme of an Equality (Miscellaneous Provisions) Bill in January 2025 which set out measures to transpose Article 5 of the Directive. Article 5 covers pay transparency prior to employment including in relation to the right to receive pay information to enable informed and transparent negotiation on pay and rules preventing employers from asking applicants about their pay history. Following pre-legislative scrutiny of the general scheme the Department has advised that it is considering certain recommendations and this is ongoing.

It is expected that the remaining elements of the Directive will be transposed by way of a Pay Transparency Bill in due course. It is worth noting that this Bill has not been included in the Priority List for the Government's Summer Legislative Programme and therefore significant further delay is anticipated. .

What are the key obligations for employers in this jurisdiction?

The Directive introduces several new obligations for employers, including:

Recruitment transparency

• Employers must provide a salary range for each role.
• They cannot ask applicants about their previous pay (to prevent continuing historical inequalities).

Pay transparency for employees

• Pay secrecy clauses will be banned; employees can discuss pay without penalty.
• Employees will have the right to request information about their own pay and the average pay for comparable roles, broken down by gender.
• Employers must respond to such requests within two months and inform staff annually of this right.

Pay structure and reporting

• Employers must explain how pay and progression decisions are made, using objective, gender-neutral criteria such as skills, effort, and responsibility.
• Large employers must publish gender pay gap reports and take corrective action where any unexplained gap above 5% is found.

Enforcement

• From 7 June 2026, the burden of proof in equal pay claims will shift to employers, who must demonstrate that no discrimination has occurred.
• The Directive strengthens enforcement by requiring effective remedies, including compensation, back pay, and potential penalties.
• Collective redress mechanisms may also be introduced.

Ireland is already exceeding the minimum requirements of the EU Pay Transparency Directive in two notable respects. Firstly, under the Gender Pay Gap Information Act 2021, Irish employers with 50 or more employees are required to publish annual gender pay gap reports. This threshold is significantly lower than that set by the Directive, which mandates reporting only for employers with 100 or more employees, to be phased in by 2031.

As a result, Ireland’s existing gender pay gap reporting obligations already apply to businesses that would not be captured by the Directive. Many Irish employers, particularly those with 50–99 employees, are already subject to obligations that go beyond the EU’s minimum requirements and it is expected that the government is likely to retain this broader scope when transposing the Directive into national law.

Secondly, Ireland’s draft legislation proposes that salary ranges must be explicitly included in job advertisements. This goes beyond the Directive’s requirement, which only obliges employers to provide salary information before the interview stage.

At present, it remains uncertain whether Ireland will go beyond the Directive in other areas. While further legislative detail is awaited, there has been no indication that additional obligations are being considered beyond what the Directive requires.

What should employers do now to prepare?

Due to the delays in implementation the government has said that employers will not be penalised for not having all elements of the Directive completed in June 2026, however, employers are currently preparing without full visibility on the final legal framework and concerns exist in relation to the potential costs and consequence for employers of implementation in the absence of the finer detail.

That said, employers are encouraged to begin preparing now to ensure compliance and demonstrate a proactive commitment to pay equity.

Key steps include:

• Auditing pay data to identify any gaps.
• Defining clear job categories and objective pay-setting criteria. The European Commission and the European Institute for Gender Equality (EIGE) have issued updated EU wide guidelines and practical toolkits, offering a clear roadmap for implementing gender neutral job evaluation systems. Irish authorities are currently developing practical guidance to help organisations comply, including a national job evaluation toolkit which should assist with this.
• Updating recruitment processes to include salary ranges and remove any questions about past pay.
• Training managers on how to handle pay-transparency discussions confidently and consistently.

Ensuring HR systems can generate the required pay reports and metrics.

Key People

Jonathan Simpson

Director

United Kingdom

 

The Italian scenario

Recent EU‑level initiatives in the field of employment law have confirmed the trend leaning towards enhanced worker protection and increased employer accountability. The Directive (EU) 2023/970 (“EU Pay Transparency Directive” or simply the “Directive”) fits squarely within this inclination, since it aims at introducing a structured and far‑reaching framework with the goal of enforcing the principle of equal pay for equal work or work of equal value while fighting the so-called “gender pay gap”.

Italy’s ongoing transposition process provides a useful glimpse of how this new regulatory architecture is being integrated into national legal systems characterised by strong national collective bargaining traditions and complex remuneration structures.

What is the current status of national implementation?

So far, Italy has opted to implement the EU Pay Transparency Directive through a dedicated legislative decree, which is currently in draft version. In early February 2026, the Italian Council of Ministers granted preliminary approval to a draft implementing decree, which was then submitted to parliamentary scrutiny.

In late March 2026, the Labour Committee of the Chamber of Deputies issued a favourable opinion on the draft, accompanied by a number of observations, thereby completing the parliamentary consultation phase required under Italian law. Following this step, the draft legislative decree is expected to return to the Council of Ministers for its final approval, with the stated aim of meeting the EU implementation deadline of 7 June 2026.

However, at the current state, no implementing piece of legislation has been formally approved, therefore no specific law regulates the matter at issue in Italy.

What are the key obligations for employers in this jurisdiction?

Within the Italian framework, the implementation of the Directive revolves around a concept that is both technically sensitive and practically decisive: the notion of pay level (“livello retributivo”). This concept constitutes the common denominator of pay comparisons, individual transparency rights, gender pay gap reporting and enforcement mechanisms.

As per the text of the draft decree, employers are required to ensure that pay structures are based on objective and gender‑neutral criteria. Equal pay must be guaranteed for workers performing the same work or work of equal value, with National Collective Bargaining Agreements (“NCBA”) serving as the primary reference for job classification systems.

According to this draft version, this means that the respect of the “plain” ranking levels provided by the NCBA constitutes a “presumption of compliance” (as therein indicated) with the legislation, provided that the NCBA applied has been undersigned by the trade unions that are comparatively more representative at the national level and that there are no individual discriminatory remunerations.

However, during the parliamentary review, the Labour Committee of the Chamber of Deputies invited the Government to reassess the definition of pay level, with the main suggestion to clarify that such concept should mean gross annual remuneration also including fixed and continuous pay components deriving from both NCBA and individual employment agreements, while excluding allowances linked to specific working conditions or circumstances. This would extend the scope of comparison to individual pay supplements such as ad personam treatments, so-called “superminimo”, that represent a rather spread praxis within the Italian employers recognizing any amount above the minimum wages provided for by the national collective bargaining agreement

Further obligations include pay transparency at recruitment stage, the right for employees to request information on average pay levels broken down by gender, and phased gender pay gap reporting obligations. Where an

unjustified gender pay gap of at least 5% is identified and not remedied within six months, employers will be required to carry out a joint pay assessment with employee representatives.

What should employers do now to prepare?

Although the implementing decree has not yet entered into force, Italian employers should already be preparing for the new regulatory environment.

Such preparation should include (i) reviewing job classification systems and pay structures according to the applied NCBA, (ii) mapping fixed and continuous remuneration components, (iii) updating recruitment practices, (iv) assessing HR and payroll data capabilities, and (v) adopt regulations/policies in order to “publicly” demonstrate the transparency of the company remuneration system vis-à-vis the gender distinctions.

The formal implementation of the final version of the legislative decree will tell us if the “mere” respect of the NCBA levels will be enough or, instead, further measures will be required so to address each remuneration package granted to each single employee.

Key People

Giorgio Manca

Partner // Co-Head of Employment (Italy)

Italy

 

What is the current status of national implementation?

The Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms ("Directive") has been partially implemented to Polish labour law. It is still uncertain when the rest of the provisions will be implemented.

What are the key obligations for employers in this jurisdiction?

Pursuant to the provisions of law implementing the Directive to Polish labour law, the employer has the obligation to inform candidates about the proposed remuneration before concluding the employment contract. The job offers must be gender neutral.

The second part of implementation will bring many new obligations. The current wording of the draft law implementing the Directive mentions the following obligations:

1. Job evaluation. For employers with active labour unions, the criteria for job evaluation should be established in consultation with the company-level or inter-company labour union.
2. Information on compensation. Employees shall be entitled to ask the labour unions representing their interests to request from the employer information regarding how a specific employee’s compensation compares to that of other employees, broken down by gender, within the same category of employees performing the same work or work of equal value.
3. Pay Gap reporting - an employer with at least 100 employees shall prepare a report on the pay gap between female and male employees. The employer shall confirm the accuracy of the information contained in the pay gap report after consulting with the company’s trade union organisation. The employer shall provide the company trade unions with access to the methodology used to prepare the pay gap report.
4. Implementation of remedial measures. If the pay gap report indicates that the gender pay gap in any category of employees is at least 5% and is not justified by objective, gender-neutral criteria, the employer shall take effective remedial measures within 6 months of the date the pay gap report is submitted. When taking effective remedial measures, the employer shall cooperate with the workplace trade unions.
5. Joint assessment of wages by the employer and the company’s trade union organisation. If the gender pay gap exceeds 5% and the employer does not provide the company-level trade with justified, neutral criteria that differentiate pay and cause the pay gap, and has not taken effective corrective measures, the employer will be required to conduct a joint pay assessment with the company-level or inter-company trade union. The draft law specifies the elements of such an assessment.
6. Preparation and communication of information about the joint pay assessment to employees and trade unions.
7. Implementation of remedial measures resulting from the joint assessment (8 months from the communication of the results of the joint pay assessment). Implementation takes place in consultation with the trade union.

What should employers do now to prepare?

Employers should review their recruitment processes to verify whether they comply with the regulations. Companies should also start the process of job evaluation and verification of criteria which differentiate the level of remuneration inside professional groups. The process of job evaluation is very time consuming and the new law may enter into force very soon, given that the deadline for implementation of the Directive is June 7, 2026.

Key People

Izabela Szczygielska

Local Partner

Poland

 

What is the current status of national implementation?

Directive (EU) 2023/970 sets the deadline for transposition as 7 June 2026. In Spain, transposition is still pending, meaning that the specific obligations set out in the Directive are not yet enforceable in the manner specified in the European text.

Spain already has a relevant regulatory framework on equal pay and pay transparency, which incorporates some of the principles set out in the Directive. However, the Directive introduces new obligations and rights that are not currently regulated in those terms under Spanish law, particularly regarding pre-recruitment pay transparency, the scope of individual rights to information, and the content and frequency of certain information obligations, which will require further regulatory development for their implementation.

What are the key obligations for employers in this jurisdiction?

Under the current regulatory framework, employers’ obligations in Spain regarding pay transparency are aimed at ensuring the principle of equal pay for work of equal value and at facilitating internal control mechanisms and access to information.

A significant proportion of the principles set out in the Directive are already incorporated into Spanish labour law. In particular, Article 28 of the Workers’ Statute, together with Royal Decree 902/2020 on equal pay for women and men, and Royal Decree 901/2020 on equality plans, establish obligations regarding pay transparency, pay records, pay audits and objective justification of pay differences based on sex.

All companies must maintain a pay register that includes the average values of salaries, allowances and non-wage benefits, broken down by gender and grouped by jobs or roles of equal value. Furthermore, companies required to have an equality plan — currently those with 50 or more employees — must carry out a pay audit aimed at identifying potential pay gaps and establishing corrective measures where appropriate.

Spanish legislation also recognises the right of employees to access certain pay-related information, either directly or through their legal representatives, particularly where significant pay differences are detected. In such cases, the company must be able to justify the existing differences objectively and reasonably, using neutral and non-discriminatory criteria.

This framework requires companies to have sufficiently structured and documented systems for job classification, job evaluation and pay setting. However, its scope is limited to the internal aspects of the employment relationship and does not extend to the pre-recruitment phase or to the enhanced individual rights to information introduced by the Directive.

What should employers do now to prepare?

The forthcoming transposition of Directive (EU) 2023/970 will entail the introduction of new pay transparency obligations and the strengthening of information rights. Although its enforceability will depend on the transposing legislation, the content of the Directive clearly identifies the areas in which companies will need to adapt their internal policies and processes.

Firstly, the Directive introduces pre-employment pay transparency measures. It recognises the right of job applicants to receive information on the starting pay or the initial pay band for the post and prohibits requests for information on previous salary history. It also requires job advertisements and recruitment processes to be gender-neutral and non-discriminatory.

Secondly, the Directive strengthens transparency in pay-setting and pay progression policies. It requires employers to make available to staff the criteria used to determine pay, pay levels and pay progression, ensuring that these criteria are objective and neutral.

Thirdly, it extends individual rights to access pay information. Employees will be able to request written information on their individual pay level and on average pay levels, broken down by sex, for categories of employees performing the same work or work of equal value. Furthermore, measures are provided for to prevent contractual clauses that prohibit the disclosure of pay where this is necessary for the exercise of the right to equal pay.

Finally, the Directive sets out pay gap reporting obligations for employers with 100 or more employees, with specific content and reporting frequencies that vary according to the size of the workforce. Furthermore, in the case of employers subject to these reporting obligations, a joint pay review with the workers’ legal representatives will be required where the following conditions are met simultaneously: the information submitted shows a difference in the average pay level between female and male employees of at least 5% within a category; the employer cannot justify this difference on the basis of objective and neutral criteria; and that this unjustified difference has not been rectified within six months of the information being submitted.

Key People

Dídac Ripollès

Partner

Spain