A bill to ensure transparency and equal pay for men and women is on internet consultation gone. The proposal aims to implement the European Pay Transparency Directive and imposes a number of obligations on employers to address unjustified pay gaps and create a fairer pay environment.
What does the bill mean for employers?
- Objective and gender-neutral wage structures
Employers should establish pay structures based on objective criteria. This means that employees should be rewarded based on their position and performance, not their gender.
- Ban on asking about last-earned salary
Employers are no longer allowed to ask job applicants about their previous salary. This ban prevents women, for example, who often start lower, from receiving a lower salary with a new employer.
- Reporting requirements
Employers with 100 or more employees must report pay gaps within their organisation and make this data public. This should increase transparency and awareness of pay gaps.
Given the impending legislation, it is wise for employers to start mapping their pay structures and pay gaps now and prepare for the changes.