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EU Pay Transparency Directive – employers should prepare for implementation now

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​​​​​​​​​​​​​by ​​​Katarzyna Kołodziej 

27 March 2025 


The third meeting of the Team for the Transposition of the EU Pay Transparency Directive1 was held at the headquarters of the Ministry of Family, Labour and Social Policy on 12 March 2025.


TABLE O​F CONTENTS


Deadline for transposition of the EU Pay Transparency Directive

 

Initial announcements suggest that a government bill transposing the EU Pay Transparency Directive into Polish legislation should appear by the end of 2025. The EU Member States are required to transpose the relevant provisions by 7 June 2026. However, they may introduce provisions that are more favourable to workers than those stipulated in the Directive.

 

Please note that the first reading of the parliamentary bill amending the Labour Code (form 934) was held at the Sejm's session on 6 February 2025. The amendment aims to introduce the pay transparency principle to apply both during employment and before entering into an employment relationship. According to the bill, the employer will not be able to prohibit or otherwise prevent workers from disclosing information about their pay. However, the bill does not address all the obligations imposed on employers by the EU Pay Transparency Directive.

 

What should employers do now?

 

Under current legislation, employers in Poland – like other employers across the European Union – are already required to ensure that workers get equal pay for equal work or work of equal value.

 

Given the principle of equal pay for male and female workers for equal work or work of equal value that is binding on employers, and only a short time remaining to implement the new EU pay transparency rules – employers should take now a closer look at the job evaluation methods and remuneration policies used in their organisations.

 

Goal of the EU Pay Transparency Directive

 

The goal of the Directive is to:

 

  • eliminate the gender pay gap;
  • strengthen the principle of equal pay for male and female workers for equal work or work of equal value
  • eliminate pay discrimination in the public and private sector by improving pay transparency.[KG1] 

 

Rights of workers and obligations of employers

 

All workers will have the right to be informed in writing about:

 

  • their individual pay level,
  • the average level of pay for equal work or work of equal value,
  • the criteria used to determine the pay level.

 

The Directive requires employers to:

 

  • submit reports on the pay gap in their organisation to workers, their representatives or competent bodies,
  • and to assess the pay jointly with the workers' representatives whenever the pay gap is at least 5%.

 

Pay transparency prior to employment

 

The EU Pay Transparency Directive contains provisions on pay transparency prior to employment. Accordingly, job applicants will be able to receive information, determined on the basis of objective criteria, about the initial pay, or its range, applicable in a given position, yet before the job interview.

 

At the same time, the employer will not have the right to ask job applicants about their current or previous pay.

 

Compensation or reparation


After the Directive is transposed into national law, workers who have sustained damage as a result of an infringement of the principle of equal pay, will have the right to claim full compensation or reparation, as determined by the Member State, for that damage.

 

Moreover, employers infringing the rights and obligations relating to the principle of equal pay will be liable to a fine.​​ 

 

​If you would like to know more about employers' obligations and workers' rights under the EU Pay Transparency Directive, contact us »​ 

 

1 Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms.

CONTACT

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Katarzyna Kołodziej

Attorney at law (Poland), LL.M. (Heidelberg)

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