Implementation of the EU Pay Transparency Directive – Where Are We Currently?

May 2024
Region: Global

How transparent are your pay practices and procedures? Do you have systems in place to enable you to categorise workers who do the same work or work of equal value? Do you provide job applicants with information about initial pay or pay ranges for the position applied for?

These are chief among the questions that businesses with operations in continental Europe should be asking themselves now if they want to comply with the requirements of the Pay Transparency Directive from 7 June 2026, with the new gender pay gap reporting obligations applying from 7 June the following year.

As the UK is no longer a member of the EU, it will not be required to implement the Directive. To the extent that UK companies have operations in continental Europe, however, it will, of course, still be relevant. Greater transparency in pay practices and procedures in EU member states is also likely to raise the profile of this issue in the UK and potentially trigger demands from UK staff for similar information.

To help employers understand the potential scope of these new obligations, in our latest “snapshot” guide we have collaborated with our Global Edge contributors to set out the current state of play in 16 key EU member states, including an indication of the likely scale of change in different jurisdictions.

Global Board Issues Webinar Series – Money, Money, Money: Pay Equity and Transparency – Global Trends

On 9 July 2024, we will be running the second virtual panel discussion in our 2024 “Global Board Issues” series on “Pay Equity and Transparency – Global Trends”. As well as discussing how companies should be preparing for the Pay Transparency Directive, our speakers will also explore key challenges and opportunities for global companies when it comes to pay equity and transparency. This webinar will be of particular interest to in-house lawyers, C-suite executives, senior HR professionals and risk and compliance professionals.

Visit our event page to find out more and register for this webinar.