Equal Pay Compliance

There are a number of key implications for employers deriving from the EU directive
2023/790 from 10th May 2023 on application of the principle of equal pay between genders.
In a nutshell, those are:

1. Obligation to provide candidates in the recruitment process with pay levels or pay ranges and prohibition to ask for pay history
2. Obligation to define and communicate gender-neutral criteria for pay and career decisions, including variable pay
3. Reporting obligations (quite detailed and with frequency depending on company size) on reward data both internally and publicly
4. Obligation to respond (comprehensively) to individual requests for information and peer group comparison
5. In case of gaps exceeding 5%, obligation to either justify the gap on objective and gender-neutral criteria or to launch a remedy process with compensation for minimum 3 years backwards
6. If justification cannot be provided as above or if employer is not compliant with other obligations of the directive, the burden of proof of non-discrimination falls to the employer. i.e. if proof can’t be provided, discrimination is assumed
7. Prohibition to reprehend employees using their right for information or submitting a claim for remediation
8. Possible fines in case of non-compliance

While at first glance this looks mainly like a data and reporting challenge, the consequences
are far reaching and require substantial changes in policy and practice for the entire
organisation.

VISTIM supports you in each step of the process to sound and compliant reward practices, aligned to your company context and performance requirements and key messages. Below the sequence of steps and their key content we are recommending to achieve just that.

The precise way on how we can support you will be defined together with you and depending on the availability of internal resources and expertise of your team – we can go from strategic advice to full delivery and implementation.