{"id":8611,"date":"2025-02-27T09:19:49","date_gmt":"2025-02-27T09:19:49","guid":{"rendered":"https:\/\/toffolettodeluca.it\/?p=8611"},"modified":"2025-05-30T13:35:51","modified_gmt":"2025-05-30T13:35:51","slug":"pay-transparency-and-the-gender-pay-gap-how-to-prepare-for-the-new-obligations","status":"publish","type":"post","link":"https:\/\/toffolettodeluca.it\/en\/pay-transparency-and-the-gender-pay-gap-how-to-prepare-for-the-new-obligations\/","title":{"rendered":"Pay transparency and the gender pay gap. How to prepare for the new obligations."},"content":{"rendered":"\n<p>The approval of <a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/IT\/TXT\/PDF\/?uri=CELEX:32023L0970\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Directive 2023\/970<\/a>, which aims to make the principle of equal pay for men and women for equal work or work of equal value effective through pay transparency, sets a deadline of&nbsp;<strong>7 June 2026<\/strong>&nbsp;for compliance by Member States through national transposition acts.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<p>As anticipated in our previous in-depth study &#8216;<a href=\"https:\/\/toffolettodeluca.it\/en\/pay-transparency-gender-pay-gap-eu-directive\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pay Transparency and the Gender Pay Gap. The importance of timely preparation before implementation of the Directive<\/a>\u2019, it is not possible to wait for publication in the Official Journal of the legislative decree implementing the Directive as it contains multiple obligations and requirements that will take time to put in place.&nbsp;These will have a huge impact on organisations\u2019 activities, with effects on both recruitment and employment relationships.&nbsp;<\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-1e81f315 gb-headline-text\">Transparency obligations before hiring<\/h3>\n\n\n\n<p>The content of job advertisements will require careful attention, and recruiters will have to be trained appropriately to ensure they carry out job interviews with the same due care.<\/p>\n\n\n\n<p>The Directive requires that job advertisements and job titles be&nbsp;<strong>gender-neutral<\/strong>&nbsp;and that recruitment procedures&nbsp;<strong>be conducted in a non-discriminatory manner<\/strong>&nbsp;in order not to compromise the right to equal pay for equal work or work of equal value.<\/p>\n\n\n\n<p>Job applicants will be entitled to&nbsp;<strong>receive information about their initial pay<\/strong>, which must be provided, for example, in a job advert or before the job interview or in other ways that ensure&nbsp;<strong>transparent negotiations<\/strong>.&nbsp;<\/p>\n\n\n\n<p>It will not be possible, on the other hand,&nbsp;<strong>to ask applicants for information<\/strong>&nbsp;regarding their current or previous salaries.<\/p>\n\n\n\n<p>Significant action will have to be taken to&nbsp;<strong>verify\/integrate pay systems<\/strong>, as the Directive requires that employees have easy access to the criteria used to determine pay, pay levels and progression criteria, which must be objective and gender-neutral.<\/p>\n\n\n\n<p>Companies will also have to be prepared to&nbsp;<strong>respond to requests<\/strong>&nbsp;made either by workers themselves or through their representatives or an equality body, for information on individual pay levels and average pay levels, broken down by gender, of the categories of workers doing the same or equally valuable work.&nbsp;<\/p>\n\n\n\n<p>This information must be provided in writing, within a reasonable time limit and, in any case, no later than two months from the date the request was submitted.&nbsp;<\/p>\n\n\n\n<p>If the information received is inaccurate or incomplete, workers may request, either personally or through their representatives, clarification and further details regarding the data provided.&nbsp;<\/p>\n\n\n\n<p>The Directive also requires employers to&nbsp;<strong>inform all workers annually<\/strong>&nbsp;of their right to receive the above-mentioned information and how they can exercise this right.&nbsp;<\/p>\n\n\n\n<p>It will, therefore, be necessary to&nbsp;<strong>put in place a procedure for the exercising of workers&#8217; right to information<\/strong>&nbsp;so that the timing and modalities of requests and responses are clear.<\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-c1d4be84 gb-headline-text\"><strong>Analysis of the gender pay gap<\/strong><\/h3>\n\n\n\n<p>In addition to the obligations towards workers relating to information, companies will be called upon to fulfil the reporting obligations that will be&nbsp;<strong>phased in from 7 June 2027<\/strong>according to the size of the company.<\/p>\n\n\n\n<p>Employers will have to meet the following reporting deadlines:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Businesses with at least 250 workers<\/strong>: by 7 June 2027 and annually thereafter.<\/li>\n\n\n\n<li><strong>Businesses with 150 to 249 workers<\/strong>: by 7 June 2027 and every three years thereafter.<\/li>\n\n\n\n<li><strong>Businesses with 100 to 149 workers<\/strong>: by 7 June 2031 and every three years thereafter.<\/li>\n<\/ul>\n\n\n\n<p><strong>Businesses with fewer than 100 workers&nbsp;<\/strong>may send the data on a voluntary basis or be included in those obliged to do so by national laws.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong><strong>What must be included in these reports?<\/strong><\/strong><\/h5>\n\n\n\n<p>Reports to the specially established monitoring body will include:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The gender pay gap in fixed and complementary or variable components;&nbsp;<\/li>\n\n\n\n<li>The median gender pay gap in fixed and complementary or variable components<\/li>\n\n\n\n<li>The percentage of female and male workers receiving complementary or variable components;&nbsp;<\/li>\n\n\n\n<li>The percentage of female and male workers in each pay quartile;<\/li>\n\n\n\n<li>The gender pay gap between workers by category of workers broken down by normal basic wage or salary and complementary or variable components.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>The information at point 5 shall also be forwarded to all employees and their representatives and, on request, to the Labour Inspectorate and the Equality Body.&nbsp;These organisations also have the right to request clarification and further details regarding any data provided, including explanations regarding any gender pay gap.&nbsp;If there is a gender pay gap, employers will have to correct this within a reasonable time,&nbsp;<strong>in close cooperation with workers&#8217; representatives, the labour inspectorate and\/or the equality body<\/strong>.<strong><\/strong><\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-1de3081a gb-headline-text\">Joint assessment<\/h3>\n\n\n\n<p>Employers who have to provide a report are obliged to carry out, in cooperation with the employees&#8217; representatives, a joint assessment of pay when the disclosure of pay information has revealed a&nbsp;<strong>gender pay gap and especially a median gender pay gap<\/strong><strong><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>of&nbsp;<strong>at least 5%&nbsp;<\/strong>in any worker category,<\/li>\n\n\n\n<li><strong>not justified&nbsp;<\/strong>by objective, gender-neutral criteria and<\/li>\n\n\n\n<li><strong>not remedied within six months<\/strong>&nbsp;from the date of communication of the pay information.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"gb-headline gb-headline-0a342ec0 gb-headline-text\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<p>As analysis shows, there are multiple obligations for companies and unions will be extensively involved in various activities such as&nbsp;<strong>the identification of objective<\/strong>, non-discriminatory and gender-neutral criteria on which to base pay systems,&nbsp;<strong>requests for information<\/strong>&nbsp;on pay levels,&nbsp;<strong>requests for clarification<\/strong>&nbsp;of information and data provided by the employer, and&nbsp;<strong>joint evaluation<\/strong>.<\/p>\n\n\n\n<p>Companies must therefore act quickly without waiting for implementation of the legislative decree transposing the Directive if they are to organise and fulfil these obligations in time.T<strong>offoletto De Luca Tamajo<\/strong>&nbsp;is at your disposal to help with implementation of the obligations arising out of this EU Directive. We can also carry out a preliminary analysis of your gender pay gap using specific software that checks compliance with the Directive parameters, with a view to the adoption of any necessary pre-emptive measures.<\/p>\n\n\n\n<p>Discover more about <a href=\"https:\/\/toffolettodeluca.it\/en\/gap-iq-pay-transparency\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gap IQ<\/a>, request a meeting today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article outlines the steps companies need to take to comply with the EU&#8217;s Pay Transparency Directive, covering recruitment transparency, pay gap analysis, and reporting obligations, ahead of the 2026 deadline.<\/p>\n","protected":false},"author":27,"featured_media":8560,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[21],"tags":[431,369],"class_list":["post-8611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsflash-insight","tag-compben","tag-gender-pay-gap"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pay Transparency and the Gender Pay Gap: How to Prepare for the New Obligations | Toffoletto De Luca Tamajo<\/title>\n<meta name=\"description\" content=\"Learn about the key obligations under the EU&#039;s Pay Transparency Directive 2023\/970 and how companies can prepare for compliance by 2026. 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