Equal Pay for Employees
All employees are entitled to a salary or wage for the work they perform. For the same work, all employees should receive the same compensation. However, since there are still wage disparities between men and women, the European Union adopted a new directive on pay transparency in April 2023.
State Obligations Regarding Equal Pay
The directive sets out basic rights and obligations. The Czech Republic must adopt legal regulations within three years (by 2026) to meet the goals of the directive. The objective is to address wage disparities between employees based on gender.
The directive applies to all employees, whether they work in the private or public sector. Member states must take necessary steps to ensure that employers have a pay system that guarantees equal pay for equal work or work of equal value. Employers will be required to establish rules for transparent remuneration of their employees.
Methodology for Employee Remuneration
The Czech Republic must create a methodology for employee remuneration. This methodology should clearly show whether employees are in comparable situations regarding the value of their work. The value of the work will be determined based on objective, gender-neutral criteria. These criteria must not be based on employees' gender and include factors such as skills, effort, responsibility, and working conditions.
At the same time, the Czech Republic must create an equality body. This body, along with labor inspectorates, will supervise compliance with the rights and obligations arising from the directive. Additionally, the Czech Republic must designate an authority to monitor and support the implementation of national measures under this directive. This body will primarily gather information from employers and produce analyses of the causes of pay disparities.
Job Applicants
The directive is not only concerned with employees who are already working for an employer. It also focuses on potential future employees – job applicants. They are entitled to information about the starting salary for a given position. Employers cannot ask them what compensation they received in their previous job.
Information about the starting salary can be provided by the employer, for example, in a job vacancy announcement.
Employer Obligations
The directive introduces a range of new obligations for employers. Employers are required to ensure their employees have easy access to the criteria used for determining their pay. Every employee should know how their employer arrived at their level of compensation. This obligation does not apply to employers with fewer than 50 employees.
Right to Information
Employees have the right to information not only about their own compensation but also about the average pay levels, broken down by gender, for employees performing the same or equivalent work.
For example, in a hospital, there are 10 employees working as practical nurses. Seven of them are women, and three are men. Each employee can request information about their pay and also how much women and men on the same position earn on average.
Employers must provide this information within two months of receiving the request.
Providing Information to the State
Employers will provide the state with information about pay disparities between men and women. Employers must provide this information to the state as follows:
Employers with more than 250 employees must submit this information within four years of the directive's adoption and then annually.
Employers with 150–249 employees must submit this information within four years of the directive's adoption and then every three years.
Employers with 100–149 employees must submit this information within eight years of the directive's adoption and then every three years.
Employers with fewer than 100 employees may provide this information voluntarily.
For employers with fewer than 250 employees, the Czech Republic will provide technical assistance and training regarding compliance with the obligations imposed by the directive.
Regardless of the number of employees an employer has, all employees are entitled to information about the pay gap between men and women within the organization.
Joint Pay Assessment
If there is a pay gap of more than 5% between men and women in a given employee category, and the employer does not properly explain or correct this gap, the employer must, together with employee representatives, conduct a joint pay assessment.
In this assessment, they will analyze the proportion of women and men in each category of employees, describe the differences in the average pay levels for women and men, and identify the causes of these differences. Based on this analysis, the employer is required to eliminate unjustified pay differences.
Legal Proceedings
If an employee believes they have been harmed by the failure to apply the principle of equal pay, they must have the opportunity to take legal action. Such an employee is entitled to compensation for the harm caused by the failure to apply the principle of equal pay. Compensation includes full reimbursement of unpaid wages, related bonuses or benefits, compensation for lost opportunities, or even non-pecuniary damages.
In a court proceeding, it is the employer’s responsibility to prove that no discrimination in relation to pay occurred.
Know Your Rights as an Employee
We assist employees in obtaining their rights and claims, whether in cases of wrongful dismissal, workplace injuries, occupational diseases, unpaid wages, or other violations of employee rights by employers.
For equal work, all employees are entitled to the same compensation. The directive aims to help reduce pay gaps between men and women. As an employee, you are entitled to information about the average compensation of other employees in the same pay category. Employers who fail to fulfill their obligations face sanctions and high fines. The adoption of this directive provides broader protection for employees and establishes numerous obligations for both employers and the state.
Do you have any questions related to the issue of equal pay? Contact us, and we will assist you.
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O vaše práva zaměstnance se stará Advokátní kancelář Ing. Mgr. Ladislav Šmarda, se sídlem v Olomouci a Praze, ČAK 18060
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