Directive (EU) 2023/970 of the European Parliament and of the Council regulates the principles of remuneration so that there is no discrimination and introduces processes that result in transparency of remuneration, not only for employees but also for job applicants, as well as transparency of remuneration increases. Transparent remuneration is part of ESG.
Is this news for Slovak employers or not?
NO
• The Slovak Labour Code already provides for the right to equal pay for equal work or work of equal value (work of equal or comparable complexity, responsibility and exertion, performed in equal or comparable working conditions and achieving equal or comparable performance and results)
• Salary conditions must be agreed without any discrimination based on gender
YES
• Introduces new definitions - median gender pay gap, quarterly pay band
• Also applies to jobseekers
• Regulates the right of employees to information on remuneration in the company
• Introduces an obligation to provide detailed reports on gender gaps
• It applies not only to basic salary but also to variable part of the salary and, where applicable, benefits
Timeframe
The Directive must be transposed by 6 July 2026. However, the evaluation of processes and their change, and the preparation of reporting are lengthy matters
BEWARE OF PENALTIES !!!
The employer will be obliged to compensate the employee - unpaid remuneration, bonuses, benefits in kind, compensation for lost opportunities, non-pecuniary damage and any other damage caused by the relevant factors - without a cap on damages.
How to avoid sanctions?
• Identify if the Directive applies to your company
• Categorise individual job positions
• Identify the ratio of men and women in the company
• Review the salary setting and the increase system
• Update GDPR processes
• Fulfil other obligations under the Directive
Alternatively
• Contact Eversheds Sutherland's employment team.
The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer.