A Deadline Approaching Fast
June 7, 2026 is the date by which EU member states must implement the provisions of Directive 2023/970 into national legal systems. There’s little time left, and the scope of changes is enormous.
Current Legal Status
What Do We Already Have?
Current labor law contains basic regulations on pay equality:
- Non-discrimination principle – prohibition of pay discrimination
- Right to fair remuneration – enshrined in labor codes
- Objective criteria requirement – obligation to use objective evaluation criteria
What’s Missing?
- Requirement to provide salary ranges in recruitment
- Employee’s right to information about average salaries
- Mandatory pay gap reporting
- Effective sanctions for violations
Which Laws Will Require Changes?
1. Labor Code
Main changes will concern:
- New provisions on the right to pay information
- Ban on pay confidentiality clauses
- Ban on asking about salary history
- Protection against retaliation
2. Employment Promotion Laws
- Requirements for job postings
- Obligations of employment offices and agencies
3. Labor Inspection Laws
- New inspection powers
- Authority to impose penalties
4. New Reporting Legislation
A separate law may be enacted regulating:
- Scope and format of pay gap reports
- Body responsible for collecting data
- Sanctions for missing or incorrect reporting
Legislative Proposals – What We Know
Ministry of Labor
The ministry is working on a draft law implementing the directive. According to unofficial information:
- Ranges in job postings – mandatory for all employers
- Reporting – according to minimum directive requirements (100+ employees)
- Monitoring body – likely statistics office or new entity under labor inspectorate
- Penalties – to be determined, but must be “dissuasive”
Public Consultations
Broad consultations are expected with:
- Employer organizations
- Trade unions
- Women’s and anti-discrimination organizations
- Labor law experts
Implementation Timeline – Realistic Scenario
| Stage | Approximate Timeline |
|---|---|
| Draft law | Q1-Q2 2025 |
| Public consultations | Q2-Q3 2025 |
| Parliamentary work | Q4 2025 - Q1 2026 |
| Presidential signature | Q1-Q2 2026 |
| Entry into force | By June 7, 2026 |
| Transition period | 3-6 months (?) |
What Can Employers Do Now?
Immediate Actions
- Follow legislative work – subscribe to ministry newsletters
- Internal audit – examine current pay situation
- Gap analysis – calculate pay gap in your organization
- Contract review – identify confidentiality clauses to remove
Medium-term Actions
- Prepare systems – ensure HR system enables reporting
- Job evaluation – introduce objective criteria
- Training – prepare management for new requirements
- Communication – plan how to inform employees
Risks of Delayed Transposition
For the State
- European Commission infringement proceedings
- Financial penalties
- Political pressure
For Employers
- Legal uncertainty
- Employee claims based on direct effect of the directive
- Planning difficulties
Direct Effect of the Directive
Important: Even if transposition is delayed, some directive provisions may have direct effect – employees will be able to invoke them directly in courts, especially against public employers.
Summary
Transposition of Directive 2023/970 is one of the biggest legislative challenges for labor law in recent years. Employers should not wait for the final shape of regulations – preparations should begin now.
Next article: “Penalties for Lack of Pay Transparency – What Sanctions Do Companies Face?”
Read Also
- Directive 2023/970 – A Guide to New Pay Equality Regulations
- ‘Equal pay and EU directive on pay transparency’
- ‘The NIS2 Directive: what do companies need to know and how to prepare?‘
Read also
- Directive 2023/970 – A Guide to New Pay Equality Regulations
- The NIS2 Directive: what do companies need to know and how to prepare?
Develop your skills
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➡️ NIS 2 Directive Lead Implementer. — EITT training
Frequently Asked Questions
What is Directive 2023/970 and when must it be implemented?
Directive 2023/970 is an EU directive on pay transparency that requires member states to implement provisions ensuring salary range disclosure in job postings, employee access to average pay data, and mandatory pay gap reporting. All EU member states must transpose it into national law by June 7, 2026.
Will employers be required to disclose salary ranges in job postings?
Yes, under the directive, employers will be obligated to provide salary ranges in job advertisements. Additionally, they will be prohibited from asking candidates about their salary history and from including pay confidentiality clauses in employment contracts.
Which companies will need to report on their gender pay gap?
According to the minimum directive requirements, companies with 100 or more employees will be required to prepare and submit regular pay gap reports. The exact reporting format and the body responsible for collecting data will be determined by national legislation during the transposition process.
Can employees invoke the directive before national transposition is complete?
Yes, even if a member state delays transposition, some provisions of the directive may have direct effect. This means employees, particularly those working for public employers, can invoke the directive’s provisions directly in court proceedings to claim their rights under pay transparency rules.