Strasbourg, 31 March 2023 (TDI): The European Parliament adopted new employment rules in Europe based on equal pay for equal work. The companies will have to be transparent about salaries & must prove equal treatment to all employees.
The Parliament adopted the legislation with a lead of 427 votes to 79 against and 76 abstentions. The legislation endorses pay levels to be based on gender-neutral criteria, gender-neutral job evaluation, and classification.
Under the same pretext, the job notices and titles will be gender-neutral. The companies will ensure carrying out the recruitment processes in a non-discriminatory manner.
According to official statistics, Women in the European Union (EU) earn 13% less than men for the same job. The new regulations will bridge the gender pay gap based on binding pay transparency measures.
Under the new legislation, the companies will have to act if their gender pay gap is over 5 The rules will enable the right to information on pay in employees’ category work, thereby eliminating pay secrecy.
This will make it easier for employees to compare their salaries and expose existing gender pay gaps. Furthermore, for the first time in years, intersectional discrimination and the rights of non-binary persons have been included in the rules.
The companies are inhibited by dissuasive penalties including fines if they fail to abide by the rules. If any worker has been at loss because of an infringement, will have a right to claim compensation.
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A worker has a right to consult the court if he believes the principle of equal pay has not been applied. The legislation obligates the employer to provide proof of no discrimination to the employee.
On approval of the rules, Kira Marie Peter-Hansen (Greens/EFA, DK), of the Employment and Social Affairs Committee, said: “This legislation makes it crystal clear that we do not accept any kind of gender pay discrimination in the EU.
Historically, women’s work has been undervalued and underpaid, and with this directive, we take an important step to secure equal pay for work of equal value.”
Next step
The Council now will have to approve the agreement formally. The next step involves signing the text into law and getting it published in the EU Official Journal. The new rules will come into force twenty days after their official publication.
Background
The principle of equal pay is laid down in Article 157 TFEU. However, the pay gap is persistent and stands around 13% across the European Union.
With significant variations among member states; it has decreased only minimally over the last ten years.
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