New measures in pay transparency are being proposed at EU level which will come into force through a new Directive that is expected to be formally adopted at EU level shortly, and set to be transposed within 3 years. The Directive lays down the minimum requirements to strengthen the application (and enforcement) of the principle of equal pay for work of equal value to address the gender pay gap.
At law, the principle of equal pay for work of equal value has already been introduced to address the gender pay gap. In Malta specifically, the principle has also been widened from its original scope to apply intra-gender. The Directive, however, will force employers to be more transparent and thus introduce new rights for employees to be able to address any gender pay gap issues directly with their employer. In a nutshell, the measures being proposed are the following:
- Pay transparency prior to employment – this will include the right to receive information about the initial pay level or range without the applicant having to request it. This information will need to be indicated in a published job vacancy or provided to the applicant upon receipt of the application.
- Transparency of pay setting and career progression policy – as the heading suggests, this will require the employer to clearly set out gender-neutral criteria used to determine pay levels and career progression possibilities.
- Right to information – this will include the right of workers to request information on their pay levels and average pay levels for categories of workers doing the same or similar work.
- Reporting on pay gap between female and male workers – larger companies employing more than 100 employees will eventually be required to put reporting procedures in place to demonstrate compliance with the Directive.
- Joint pay assessment – qualifying employers will be required to carry out a joint pay assessment with employee representatives.
In the run up to implementation, employers should ensure that procedures are put into place to address the requirements of the proposed Directive. This includes revisiting and revising (a) roles within the company and salary scales; (b) recruitment and promotion strategies and policies; and (c) measures to collect and process the relevant data.
For further information or questions on your obligations pursuant to the EU Pay Transparency Directive get in touch with Ron Galea Cavallazzi (firstname.lastname@example.org) Edward Mizzi (email@example.com) or Iana Said (firstname.lastname@example.org).