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European Union

European Union

EU Enacts Pay Transparency Directive to Address Equity

European Union (EU) Directive 2023/970 on pay transparency (the “Directive”) which entered into force on 6 June 2023, requires each EU member state to pass legislation enacting the requirements as outlined in the Directive by 7 June 2026.
The goal of the directive is to further reduce or eliminate gender pay inequity within the EU through measures aimed at countering gender pay discrimination, through the collection and disclosure of pay gap data, compensation for those who have suffered pay discrimination, and penalties against employers for violations.

European Union

EU Directive on pay transparency

On 30 March 2023, the European Parliament adopted the Pay Transparency Directive (the “Directive”) to increase pay transparency and to close the gender pay gap across European Union (“EU”) member states. The Directive imposes, among other things, gender pay gap reporting obligations for larger employers, transparency obligations regarding pay setting, the right for employees to request pay information, as well as protective measures and access to justice for victims of pay discrimination.

In due course, the Directive will be submitted to the European Council to be formally approved and published in the EU Official Journal. The Directive will come into force 20 days after its publication date, and member states will be required to pass national legislation meeting the new minimum requirements established by the Directive within three years.

European Union

EU directive on adequate minimum wages

In an effort to enhance the adequacy of statutory minimum wages, promote collective bargaining on wage-setting, and improve access to minimum wage protections, European Union (EU) member states will be required, no later than 15 November 2024, to pass national legislation meeting new minimum requirements established by Directive 2022/2041 of 19 October 2022 (the “Directive”) on adequate minimum wages.