The EU Pay Transparency Directive 2023\/970 of 10 May 2023 (the \u201cPay Directive\u201d or the \u201cEqual Pay Directive\u201d) is a landmark solution for the labour market. Although Member States have to implement the provisions by 7 June 2026, many employers are already expressing concerns about the implementation of the new regulations into the Polish legal order. What changes does the directive bring and how will it affect the labour market?<\/p>\n
One of the key objectives of the European Union is to create a workforce system based on equal and decent employment conditions. The main objectives of EU Directive 2023\/970 include:<\/p>\n
Under the Pay Directive, employers are required to provide detailed reports on pay conditions to a monitoring body appointed by the Member State.<\/p>\n
What should be included in such a report?<\/p>\n
A gender pay gap exists if the difference in the average pay level between female and male workers is more than 5%.<\/p>\n
Workers who consider themselves wronged by a failure to apply the principle of equal pay have the right to take <\/b>legal action to enforce their rights. Court proceedings will be easily accessible to workers and those representing their interests. It is also important that the possibility to seek compensation also applies after the termination of the employment relationship within which the infringement occurred.<\/p>\nPenalties provided for by the Equal Pay Directive<\/h3>\n
Member States are required to introduce effective, proportionate and dissuasive penalties for infringements of the equal pay principle. These penalties should have a preventive effect, particularly against employers who commit repeated infringements. Penalties mainly include fines, the amount of which is determined at a national level.<\/p>\n
Pay disclosure is still a taboo in Polish society \u2013 both among workers and employers. The practice of openly disclosing pay has not yet been adopted in Poland, which means that the implementation of the Equal Pay Directive may face resistance.<\/p>\n
Work is currently underway in the Sejm to amend the Labour Code in order to implement the Equal Pay Directive. The bill raises many controversies. Some experts stress that pay is covered by secrecy, which protects the competitiveness of companies. However, other experts point out that the legislative process should be carried out in the governmental mode, which would allow for a more thorough analysis and regulating potential issues. The parliamentary procedure for the adoption of amendments is assessed as hasty, which may result in legal loopholes.<\/p>\n