EU Pay Transparency Directive: Significant Changes On The Horizon For Employers In The EU

The directive sets out minimum standards regarding pay transparency that EU Member States are required to implement in terms of (among other things):

1. a gender pay gap reporting regime across the EU.
2. a ban on contractual terms that restrict employees from disclosing information about their pay; and
3. a ban on employers asking job candidates about their pay history and their existing salary.

In addition, job seekers will also have certain new information rights under the directive (e.g. employers will be obliged to disclose the initial pay level or range in the job advert or before the job interview) as will existing employees (who will have the right to request information from their employer on their individual pay level and on the average pay levels, broken down by gender, for employees doing the same work or work of equal value).