Council of the EU reaches general approach on pay transparency

On 6 December 2021, the Council of the EU reached a general approach on the proposal for a directive on pay transparency.

HOTREC welcomes the fact that SMEs kept their exemption on reporting on pay transparency. We also appreciate the introduction, within the proposal, of even more exemptions for small businesses (e.g., from pay progression), as well as more possibilities for companies to justify pay differences. We are also pleased with the recognition of the role of social partners and national law/collective agreements and with the fact that legal and judicial costs take the position of the employer into better account. However, we believe that any assessments should be based on comparable situations based on gender-neutrality.

The European Parliament EMPL and FEMM committees will vote on this proposal in February. HOTREC hopes that compromise amendments will be put forward to protect SMEs from extra administrative and economic burdens.