With less than three months to go until the Pay Transparency Directive comes into force, we are starting to see more EU member states take steps to prepare for its implementation. Progress is, however, still slow. This is not a reason for employers not to take action! We would continue to urge affected companies to be taking steps now to comply with the requirements of the Directive. It seems that, as was the case with the Whistleblowing Directive, many member states will be issuing draft legislation late in the day. This makes things very difficult for employers, but as the minimum requirements of the Directive are clear, employers should be using these as the framework for their preparations.
In the latest version of our “snapshot” guide, we have collaborated with our Global Edge contributors to set out the current state of play in 19 key EU member states, including an indication of the likely scale of change in different jurisdictions and the potential need for union/works council consultation along the way.
As the UK is no longer a member of the EU, it will not be required to implement the Directive. To the extent 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 or similar information.
We also track pay transparency developments on our award-winning subscription-based platform, Global Edge. Existing subscribers can access the Pay Transparency At a Glance Guide here. For more information about subscribing to Global Edge or to organise a demo or trial access to the platform, please email us.
