The European Parliament has supported a directive on pay transparency, which aims to reduce the gap in pay between men and women and force employers to be more transparent about pay. Companies with at least 100 employees will have to disclose salaries in a way that is comparable by gender. If the pay gap is found to be more than 5%, they will have to implement corrective programs in cooperation with trade unions.
The end of pay secrecy
Under the new rules, employees will be able to demand clear and complete information about the level of pay divided by gender. Pay secrecy will be banned, and employers will not be able to contractually obligate employees to keep their salaries confidential or limit their access to information about the pay levels of workers in the same or different categories. Employers will also have to provide information on the offered salary for a specific position.
Penalties
Member states will have to impose sanctions, such as fines, on employers who violate the rules. Employees who suffer damage as a result of a breach of the rules will be able to claim compensation.
Shifting the burden of proof
In terms of wages, the burden of proof will shift from the employee to the employer. If an employee believes that an employer has not applied the principle of equal pay to them and takes the case to court, the employer will have to prove that there was no discrimination.
When will this happen?
The new rules must now be approved by the Council. The text of the directive will then be signed and published in the Official Journal of the European Union. The new rules will come into effect twenty days after their publication. Member states will have three years to implement the EU provisions into their national law.
Autor: Agnieszka Orłowska (Managing Director at ESG Institute)
The European Union wants to eliminate the gender pay gap
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