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In brief

Closing the Gap: The EU Pay Transparency Directive 

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 here.

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
 UK  Extension to gender pay gap reporting deadline
New guidance published on gender pay gap reporting requirements
 US  US pay equity and transparency developments what you need to know going into 2021
 New pay data reporting obligations for California employers
 Importance of paying attention to pay equity during COVID-19

 

Author

Michael has more than 15 years' experience as an employment law and industrial relations lawyer, acting for clients in a range of industries, including banking and finance, insurance, health and pharmaceuticals, telecommunications, real estate, media and entertainment, information technology and professional services. He has developed and published compliance programs and best practice policies locally and within Asia Pacific. He is the author and a developer of CCH’s Employment Contracts Manager, a software package that builds and tailors smart employment contracts. He has also authored a large number of chapters in every edition of CCH’s Australian Master Human Resources Guide. Articles written by Michael on employment law topics have appeared in the Melbourne University Law Review, CFO Magazine, Human Capital, Lawyers Weekly, Human Resources, and CCH’s Employment Law Bulletin. He has also spoken at events arranged by the College of Law, Macquarie Graduate School of Management, and various professional associations. He wrote and produced “Dismissal Impossible,” a training video on unfair dismissal and sexual harassment, for the Australian Stock Exchange. Michael regularly conducts employment-related litigation before State and Federal courts and industrial tribunals at an original and appellate level.

Author

Dr. Bernhard Trappehl chairs the EMEA Employment Practice Group and manages relationships with several of the Firm’s largest clients. He served as managing partner of the Firm’s German/Austrian offices between 2007 and 2012. He frequently speaks at seminars and provides in-house trainings on a wide range of employment matters, and regularly contributes to publications, books, newspapers and law journals.

Author

Tatiana Garces Carvajal is a lawyer and a specialist in labor law, graduated from Pontificia Universidad Javeriana, with post-graduate studies in commercial law from Universidad de los Andes. She has over 30 years of experience advising major clients on matters related to individual and collective labor law. For three years, she worked as the director in charge of the HR Department, head of the Legal Division of the Betania Plant, and as a lawyer in the Legal Department of Alcalis de Colombia. Previously, she worked as head of the Personnel Department at AGA Ltda., and as a paralegal at a law firm. In addition to her experience as professor, lecturer, author of several publications and arbitrator in labor collective disputes, she served as technical adviser to the employers’ delegate for Colombia at the 98th Session of the International Labor Organization in Geneva (2015). She also participated at the 93rd Conference (2009). She joined the Baker McKenzie Bogota office in 1992 as an associate in the Labor Law Department, and was appointed partner in July 2000. She also serves as managing partner of the Baker McKenzie Bogota office and regional leader of the Employment and Compensation group in Latin America and the Employment and Compensation practice at the Bogota office. As representative for LA, she is a member of the steering committee of the Global Employment and Compensation Group of Baker McKenzie, and in her capacity as managing partner of the Bogota office, she is a member of Baker McKenzie’s Global Policy Committee.

Author

Susan Eandi is the head of Baker McKenzie's Global Employment and Labor Law practice group for North America, and chair of the California Labor & Employment practice group. She speaks regularly for organizations including ACC, Bloomberg, and M&A Counsel. Susan has been published extensively in various external legal publications in addition to handbooks/magazines published by the Firm. Susan has been recognized as a leader in employment law by The Daily Journal, Legal 500, PLC and is a Chambers ranked attorney.

Author

George Avraam practices trial and appellate litigation. The Law Society of Ontario has designated George as a specialist in civil litigation. He is a Fellow of the College of Labor and Employment Lawyers, has been ranked in Chambers Global and Chambers Canada and Ontario (Band 2), has been recommended as a leading lawyer in Legal 500 for Labour and Employment, and has been recommended as a leading employment lawyer in Lexpert. George is also the Chair of the North America Employment and Compensation Law Practice Group and a member of the Global Employment and Compensation Law Practice Group’s Steering Committee.