The following readiness quick check is intended to enable employers to begin asking some of the important questions that emerge as a result of the new EU Pay Transparency Regulations.
This tool does not present a fully detailed and complete coverage of all aspects of the regulations (there are a lot of them!) but it does highlight some of the key questions that our clients have found it useful to consider as they prepare to exploit the opportunities presented by the regulations in a way which ensures compliance and maximises the benefits for the business.
Answering yes to all of the questions which follows does not mean that the business will automatically be fully compliant with all dimensions of the regulations, it simply shows that the organisation has many of the core building blocks in place and are starting from a solid base, it does not mean that the business can relax and do nothing in the run up to full member state implementation.
As a quick reminder:
- EU Member States must have written the regulations into their state laws by June 2026.
- The regulations apply to all employers regardless of the number of employees. There are some dimensions which may apply only to larger employees (e.g. Gender Pay Gap reporting) depending on member state application and current practice, but most aspects will apply even where the number of employees is very small.
- Whilst we are waiting for all States to publish details of their local implementation, the core components of the regulations are known and can be acted on now! There is no need to delay action or planning at this stage as the clock is running and delaying could compromise your ability to comply on schedule.
- There will be penalties for non-compliance that will be issued by a Government body who will be identified in each country to manage and monitor adherence to the regulations. Penalties will be financial (a % of payroll bill or turnover in each country) and can also include removal from any state/ public sector supplier lists and contract processes. Any of the above will also be accompanied by significant reputational damage.
- Whilst the regulations will not automatically apply in non-EU countries in Europe, there is expected to be a significant knock-on effect with local practices changing to reflect the regulations anyway as regional employers deploy them across the entirety of their European business.
Would you like to know more
The EU regulations are complex and comprehensive with a number of fundamental impacts that will change the underlying nature of the employer/ employee relationship.
If you would like to discuss them, in the specific context of your own business or if you would like support in developing your own journey to transparency, please contact Stuart using the form at the end of the assessment or the form below.
Please note:
This quick check tool is designed for illustrative purposes only.
While we have taken every care to ensure that the information is correct it has been prepared for general information purposes only and is not intended to amount to advice on which you should rely.
