The implementation of the European Pay Transparency Directive must be completed by June 7, 2026. However, some of the key provisions within the directive are vague and ambiguous, which could lead to significant interpretational challenges and workplace conflicts, notes Witold Michałek, an expert at the BCC (Business Centre Club) on economic affairs, legislation, and lobbying.
“It is crucial to restart a substantive dialogue on how best to incorporate the directive’s provisions into the Polish Labor Code while minimizing potential workplace conflicts arising from overly generic language and varying interpretations by stakeholders,” Michałek emphasizes.
The EU Pay Transparency Directive
On June 6, 2023, the European Parliament and Council Directive (EU) 2023/970 came into effect. This directive aims to strengthen the principle of equal pay for men and women for the same work or work of equal value through transparency and enforcement mechanisms. Under these new regulations, companies in the European Union will be required to provide information on pay levels and address pay gaps exceeding 5%. This reporting obligation applies to companies with more than 250 employees.
Employers must ensure transparency in pay structures and guarantee equal pay for the same work or work of equal value. Additionally, employers will need to disclose information about initial salary levels or pay ranges—based on objective criteria—before interviews, such as in job postings.
The directive mandates that implementation into national legislation must be completed by June 7, 2026.
Ambiguities and Potential Conflicts
Unfortunately, some of the directive’s crucial provisions are ambiguous and may create interpretational challenges, leading to potential conflicts. For example, the requirement that employers use pay structures ensuring equal pay for the same work or work of equal value could be contentious. The directive defines “work of equal value” using “objective and gender-neutral criteria” such as skills, effort, responsibility, working conditions, and other relevant factors.
“While these criteria are objective, they are open to infinite scaling, allowing various interpretations. This means that job positions and their corresponding pay can be described or challenged in countless ways depending on one’s perspective,” Michałek warns.
New Employer Obligations
The new rules impose specific obligations on employers, including:
- Informing employees about their pay levels in comparison to others in similar roles.
- Disclosing pay ranges in job advertisements or during interviews.
- Prohibiting questions about a candidate’s previous salary during recruitment.
Legislative Efforts in Poland
On December 5, 2023, a parliamentary bill was submitted to amend the Polish Labor Code to partially implement the directive’s requirements. However, this bill has faced criticism.
Michałek highlights that the bill is based on weak assumptions, such as the claim that “Poles believe job postings should include pay information” and the generalization that “recruiters and employers often view questions about pay as a sign of poor manners, entitlement, or arrogance.”
“Statements like these in the bill’s justification raise significant doubts among employers about the objectivity of the lawmakers’ perspective on employee-employer relations. A more structured dialogue is needed to ensure the directive is implemented effectively in Poland, without creating unnecessary conflict,” Michałek concludes.
Source: CEO.com.pl
