EU Pay Transparency Directive | Director’s Briefing

In April 2023, the European Council adopted new rules on pay transparency. The directive aims to address pay discrimination and help close the gender pay gap in the EU.

To do this, employers will be required to meet certain levels of transparency and commitment to how pay is set and advertised.

EU companies will also need to share information on pay and take action if their gender pay gap exceeds 5%.

The directive also includes provisions on compensation for victims of pay discrimination and penalties, including fines, for employers who break the rules.

This Director’s Briefing takes you through:

• Why is pay transparency important?
• What does pay transparency have to do with ESG?
• Is the EU directive in force?
• What does the directive require?
• Will this directive affect UK employers?
• What do UK employers need to do?

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