As more companies embrace inclusion and diversity as a board level priority and take progressive steps to build a more inclusive workforce we are seeing an evolution in equal pay laws across the globe as lawmakers respond to the need to close the diversity gap.
Most recently, the European Commission has proposed a directive aimed at requiring pay transparency, which, if passed, would affect each of its 27 member states. We outline the key proposals and their impact on European employers below and highlight additional recent global developments in equal pay.
European Union: Commission proposes pay transparency rules to secure equal pay
The EU Commission has proposed a directive that would reinforce the entitlement to equal pay for men and women for the same work, or work of equal value, including by giving employees the right to comparative pay information and by requiring gender pay gap reporting for employers with 250+ employees, amongst other measures. Some EU member states already have aspects of these rules, while others do not, meaning that the rules could be a significant additional compliance burden for some organizations. The rules, if adopted, would be unlikely to come into force before late 2024.
For more information on this development, see our latest alert, EU: Commission proposes pay transparency rules to secure equal pay.
Global equal pay developments
- EU: EBA consults on guidelines on sound remuneration policies
- Middle East: Labour law updates in the GCC promoting gender equality: Ensure your current salary practices are compliant
- Spain: The New Provisions Governing Equality Plans, Transparency and Equal Pay