Directive on Equal Pay for Equal Work or Work of Equal Value
Directive on Equal Pay for Equal Work or Work of Equal Value
The European Union has adopted the Pay Transparency Directive to reduce gender pay gaps and strengthen pay transparency across Member States.
The Directive introduces obligations for both employers and employees, including clear definitions of pay, availability of analytical tools, and minimum reporting requirements. AmCham supports the Directive’s objectives and calls for close cooperation with relevant institutions to ensure the business community can adopt the legislation more smoothly and effectively. The focus is on balanced implementation in Croatian legislation to ensure equality and transparency while reducing the administrative burden, particularly for smaller employers.
Key reccomendations include:
- Clearly define the terms “pay” and “employer” in line with the Directive, considering existing legal and tax implications.
- Ensure timely availability of tools and methodologies for job evaluation and classification.
- Apply minimum reporting requirements to reduce the administrative burden, particularly for smaller employers.
- Provide technical and informational support to employers, especially those with fewer than 250 employees.
- Establish clear rules for the protection of confidential information and allow individual salaries to remain a business secret.
- Limit limitation periods to the three years prescribed by the Directive for greater legal certainty.
- Publish all implementing regulations in a timely manner to give employers sufficient time to adapt.