EU: the Pay Transparency Directive, a few steps away from being voted

The Pay Transparency Directive, which was approved by the European Council on 15 December 2022, is just a few steps away from being formally voted upon by the European Parliament (expected in March 2023). The Directive introduces a framework of onerous obligations on employers requiring them to prepare gender pay gap reports, be interrogated on those reports and be subject to compulsory pay assessments where the reports reveal pay disparities of 5% or more. It also requires employers to be more transparent and objective in their hiring and salary determination processes.

We summarize in this Newsletter the most relevant FAQs and provide an overview of key "to-do’s" with questions and actions to consider to prepare for the implementation of the Directive.