flash news: #remuneration
On 29 July 2024, the Court of Justice held that a rule under which part-time workers can only receive overtime pay for work exceeding the work time standard applicable to full-time workers constitutes unequal treatment of part-time workers which, if not justified by objective reasons, may be contrary to EU law (case ref. C-184/22 and C-185/22).
On 6 June 2023 the EU Pay Transparency Directive came into force. EU member states have until 7 June 2026 to implement the provisions of it into national law.
The provisions of the Directive are meant to enforce gender pay equality in member states and prevent wage gaps.
The most important employer obligations under the Directive are:
- an obligation to inform job applicants of an initial pay level or range of pay envisaged for a job based on objective and gender-neutral criteria;
- gender pay gap reporting obligations for companies (both public and private companies) employing more than 100 persons.
As a result of the Directive, it will be necessary for the employers to review recruitment processes, job descriptions, and remuneration policies in terms of gender-neutral remuneration criteria.
Workers will obtain a right to information on the pay levels of employees doing the same work or work of equal value.