Navigating the Piecemeal Implementation of the EU Pay Transparency Directive
As the deadline for transposing the EU Pay Transparency Directive into national law nears, member states are adopting varied approaches to its implementation.
Ireland has recently proposed new legislation to implement parts of the Directive, and we may see a trend of piecemeal adoption across the EU. This article explores the implications of such an approach.
Ireland's Approach to Pay Transparency
Last month, the Irish Government published the draft "General Scheme of the Equality (Miscellaneous Provisions) Bill 2024", proposing amendments to various equality laws, including provisions that address parts of the Pay Transparency Directive through two proposals:
- Employers should provide salary levels or ranges in job advertisements (this is more prescriptive than the Directive, which requires this information either in the advertisement or in advance of the interview);
- Employers should not ask applicants about their pay history or current salary, as per the Directive.
As of yet, Ireland's approach does not reflect a comprehensive implementation of the Directive. The Directive's other requirements will doubtless be addressed in due course, but no timelines for draft legislation have been announced. Additionally, the Bill may be amended before becoming law, and existing laws like the Gender Pay Gap Information Act 2021 might also be updated to meet the Directive's requirements. It's likely that the Directive's mandates will be integrated into various Irish laws.
Commonality across member states
So far, Sweden, Belgium, Poland and Ireland have all published proposals for implementing some or all of the Directive. All four member states have proposed amendments to existing legislation, to a greater or lesser extent. Whereas some member states will make comprehensive amendments to one piece of legislation (like Poland proposing to amend its Labour Code), others are proposing amendments to multiple pieces of legislation.
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Subscribe nowWe have also seen a contrasting example of partial implementation by Belgium, where the Fédération Wallonie-Bruxelles introduced requirements of the Directive for public sector employers in that region only.
Impact on international employers
The varied approaches to implementing the EU Pay Transparency Directive underscore the need for employers to stay on top of developments in the different member states where they have operations. As well as navigating differences in national legislation across a cross-border group, monitoring multiple pieces of proposed legislation in individual member states adds a new layer of complexity.
There is one annual pay cycle left to plan, allocate resource and identify and address issues before 2026 data reporting. As a European law firm, Fieldfisher can help you to navigate and comply with the requirements of different member states, including enables clients to identify disparities and conduct their preparations and trial data-runs under the protection of legal privilege. If you would like to discuss the requirements in different Member States, how to meet those requirements and/or achieving consistency in approach across different jurisdictions, or any other aspect of pay transparency, please contact the team, your usual Fieldfisher contact or transparencypays@fieldfisher.com.
