A directive aimed at strengthening the principle of equal pay for men and women for equal work or work of equal value will enter into force in 2026. It will cover all businesses, salaried employees, and temporary agency workers.
What is the directive about?
According to the directive, a lack of transparency regarding pay levels in organisations perpetuates a situation in which pay discrimination and gender bias may remain undetected and, if suspected, difficult to prove.
Therefore, it is essential to introduce effective measures to increase pay transparency, encouraging organizations to review their pay structures to ensure equal pay for women and men performing the same work or work of equal value. It is also important to enable victims of discrimination to pursue their rights to equal pay.
These measures will be complemented by provisions clarifying existing legal concepts such as "remuneration" and "work of equal value", as well as measures to improve law enforcement mechanisms and access to justice.
What steps are worth taking at this point?
To implement the directive into organizational structures, it is first worthwhile to analyze the employer's organizational structure. This procedure may include, among other things, an analysis of identical positions and an assessment of the validity of position gradations such as "senior" and "junior."
After conducting an analysis of the organisation, it will be necessary to take further actions, such as: defining criteria for position evaluation and developing analytical keys, or analyzing the level of remuneration and classification in the context of the EU Directive.
In summary, the EU directive aims to combat pay discrimination and close the gender pay gap in the EU. Under the new regulations, EU companies will be required to provide pay information, and if the gender pay gap exceeds 5%, employers will be required to take appropriate action to eliminate it. The directive also introduces provisions on compensation for victims of pay discrimination and penalties, including fines, for employers who violate the new regulations.
Therefore, it is worth starting preparations now to implement appropriate solutions that will allow structures to be adapted to the requirements of the directive.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of January 23, 2025
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