Employers operating in the European Union (EU) should be aware of a recently proposed “directive” which, assuming it is finalized and then adopted as required by the EU’s individual member states into their own laws, will impose new pay transparency and pay data reporting requirements on covered employers.
Proposed Directive 2021/0050 aims to address the gender pay gap in the EU by requiring employers doing business there to provide salary information to job applicants and by allowing employees access to information about their pay level and that of colleagues doing similar work, broken down by gender.
Among other things, as currently drafted the directive would require large employers in the EU to compile data reports of compensation between their male and female employees and file these reports with the relevant member state’s monitoring body, as well as make this information publicly available. In addition, if pay differences are 5% or greater, the employer would be required to undertake a further analysis to identify the reasons for the disparity and take corrective action.
Members of the Center for Workplace Compliance (CWC) can read more here.