What\u2019s changing?<\/b><\/p>\n
No one can argue with equal pay for men and women for the same work \u2013 it\u2019s been a founding principle of the EU since 1957. Companies\u2019 lack of transparency about coworker salaries and benefit-in-kind perks however, have made it difficult for workers to know how equal things are.<\/p>\n
Current gender pay gap<\/a> reporting requires companies to publicly disclose the difference in the average hourly wage between male and female workers. The reporting reveals a persistent gender pay gap in many EU countries. <\/p>\n For individuals who perceive unfairness based on gender<\/a>, it\u2019s been far too hard to get justice. <\/p>\n \u201cIf I wanted to bring a case saying someone of a different gender is paid more for the same work, I don\u2019t get access to the information, there isn\u2019t the transparency,\u201d says Breda O\u2019Malley, employment law consultant with Hayes Solicitors LLP. <\/p>\n It\u2019s been up to the alleged victim to do all of the digging about their company\u2019s pay structures to gather evidence. This can make a legal case too costly and burdensome to pursue.<\/p>\n [\u00a0Median earnings for men almost \u20ac150 higher per week than women, CSO figures showOpens in new window<\/a>\u00a0]<\/p>\n \u201cTo date, it\u2019s been very hard for a woman to say, I\u2019m getting paid differently or less money than my male colleague and he is doing exactly the same work and we have exactly the same qualifications,\u201d says Deirdre Malone, head of employment law at EY.<\/p>\n \u201cYou don\u2019t have access to what your male colleagues\u2019 salary is, and you can\u2019t demand that information either\u201d says Malone. <\/p>\n Ireland has until next June to transpose a new EU Pay Transparency Directive that aims to make pay unfairness on the grounds of gender harder to hide and easier to prosecute. <\/p>\n From June 2027, companies will be required to report more granular information on pay. The first reports will be based on payroll data from 2026.<\/p>\n It means employers will have to be more open about starting salaries, pay scales and pay gaps and the information must be shared with employees too.<\/p>\n [\u00a0Will part-time work or staying at home with children leave you poorer in old age? Here\u2019s what to do nowOpens in new window<\/a>\u00a0]<\/p>\n A lack of transparency on these things is what has made pay discrimination so hidden to date. <\/p>\n \u201cThat\u2019s why we haven\u2019t seen a huge number of claims on the grounds of gender discrimination. The EU wants to make this easier,\u201d says Malone. <\/p>\n The new directive will shine a light on any equal-pay-for-equal-work anomalies among male and female colleagues, making it easier for victims to identify unfairness and get justice. This should mean fairer compensation and career progression for all over time. <\/p>\n \u201cCompanies will be required to provide transparency in their pay systems \u2013 this means more information, and information is power,\u201d says O\u2019Malley.<\/p>\n \u201cThe information is not just something that can sit in the press and you hope employees don\u2019t know about it,\u201d says O\u2019Malley.<\/p>\n \u201cEmployers will be obliged to proactively tell employees each year that they have an entitlement to know where their personal pay sits relative to their grade, they are entitled to know their band for their range of work,\u201d she says. <\/p>\n The directive covers equal pay for \u201cwork of equal value\u201d. This will involve a complex comparison of roles based on things such as skills, effort, responsibility and working conditions. <\/p>\n So it\u2019s not just about comparing the compensation of people with the same job title. Employers must examine and categorise all work in the organisation. Those doing work of similar value, not just those with the same job title, must be rewarded similarly. <\/p>\n Changes to the legal position in the UK in relation to the issue have resulted in a number of substantial cases being taken. Clothing retailer Next came a cropper when, retail sales consultants, mostly female, were found to be earning less than the company\u2019s mostly male warehouse workers.<\/p>\n In equal pay cases, employers must demonstrate that any pay difference is due to a \u201cmaterial factor\u201d other than sex. Next\u2019s argument that the pay difference was due to the differing \u201cmarket rates\u201d for the roles was not accepted by the tribunal. <\/p>\n [\u00a0Pay transparency directive could lead to more legal actions against employers, Ibec event toldOpens in new window<\/a>\u00a0]<\/p>\n The courts ruled the sales work was of equal value, even though on the face of it, these jobs looked different, says Malone. A similar claim is being pursued by Asda workers, she says.<\/p>\n \u201cIf it\u2019s accepted that working on the supermarket shop floor is work of equal value to work in the dispatch centre, this comparator gives you an idea as to how \u2018equal value\u2019 can be interpreted,\u201d says Malone. <\/p>\n What if I think I\u2019m being paid unfairly?<\/b><\/p>\n So, if you suspect you are being paid differently to colleagues of another gender doing the same work, or work of equal value, what can you do?<\/p>\n First up, if you are a senior accountant, for example, you can\u2019t ask what your senior accountant colleague \u201cTom\u201d is earning. <\/p>\n \u201cYou can ask for the gender pay gap within your cohort of people. You are not going to be able to ask how much \u2018Tom\u2019 is earning, but you\u2019ll be given the percentage of the gender pay gap in your category of worker,\u201d says Malone.<\/p>\n \u201cIf a company has a gender pay gap of 5 per cent or more and they can\u2019t objectively justify it and they don\u2019t fix it, then employees or their representatives will be able to compel a \u2018joint pay assessment (JPA)\u2019\u201d, says Malone. <\/p>\n This is where the employer must collaborate with worker representatives to identify the root cause of the gender pay gap in their organisation and implement remedies to fix it. <\/p>\n For private, non-unionised workplaces, used to paying who they want how they want, this could be an embarrassingly revealing moment. <\/p>\n \u201cIf the JPA finds there is a more than 5 per cent gap between pay on grounds of gender in any category of their workers, and if it can\u2019t be justified by seniority, qualifications or other objective things, and that isn\u2019t remedied for six months, an inquisition kicks in that deep dives into the employer\u2019s pay system,\u201d says O\u2019Malley.<\/p>\n [\u00a0Gender pay gap: Women seethe quietly with rage at performative nonsenseOpens in new window<\/a>\u00a0]<\/p>\n To the worker, or her lawyer or trade union on her behalf, this inquisition effectively \u201cspoon-feeds the evidence\u201d for a case, says O\u2019Malley. <\/p>\n \u201cBefore, if you as an employee contacted me and said, \u2018I reckon the guys are earning more\u2019, we\u2019d say \u2018what proof do you have?\u2019 And very quickly, you run aground.\u201d<\/p>\n \u201cNow the employer must create all the evidence that I would have been trying to pull together at a huge cost.\u201d<\/p>\n If you think you were unfairly paid on the grounds of gender in the past, you will have some recourse too, says O\u2019Malley.<\/p>\n \u201cThe directive says there should be a three-year period where I can do a look back, with the trigger for the three years being when I became aware or could have reasonably expected to be aware of the infringement,\u201d she says.<\/p>\n How will the interview process alter?<\/b><\/p>\n The new rules mean asking a prospective hire their current salary at a job interview will be prohibited. <\/p>\n \u201cIf you are going for a new role with a new employer because it\u2019s a promotional opportunity for you, it\u2019s highly likely, based on all of the statistics published, that if you have one male and one female candidate, the female is earning less,\u201d says Malone.<\/p>\n For a woman who is already paid unfairly compared with male colleagues, asking her salary at an interview can serve to perpetuate the discrimination to their next role. <\/p>\n \u201cCompanies won\u2019t be able to ask candidates about their pay history, which really makes it a level playing field,\u201d says Malone.<\/p>\n Instead, employers will be required to disclose salary ranges or pay levels in the job ad or before the interview. <\/p>\n \u201cAnd, it\u2019s a conversation starter, it doesn\u2019t prevent you from negotiating,\u201d says Malone.<\/p>\n [\u00a0The broken rung in the career ladder – why women continue to earn lessOpens in new window<\/a>\u00a0]<\/p>\n Employees will also be able to ask what criteria is used to determine pay levels for career progression, says Malone. <\/p>\n \u201cYou can find out what the pay is for the role, and what the pay progression for your career will look like,\u201d she says. <\/p>\n This should stop situations where two people doing the same work can end up on different salaries over time, for no objective reason. <\/p>\n The new rules mean employees can talk to each other about pay too, says Breda O\u2019Malley.<\/p>\n \u201cOnce the legislation is implemented, you cannot prohibit an employee from discussing salary or disclosing salary,\u201d she says. <\/p>\n What are the changes to benefit-in-kind perks?<\/b><\/p>\n Benefit-in-kind perks can comprise a substantial part of a worker\u2019s overall remuneration package. These items are sometimes awarded on a discretionary basis such as a car allowance, a fuel allowance, memberships, courses, stock options, health benefits, car parking or death-in-service benefit. <\/p>\n Until now, companies only had to disclose the percentage of men and the percentage of women receiving a benefit in kind, says Malone.<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/08\/1754647931518-c07d65db-55b5-463e-ae51-976300c5837e.jpeg\"\/)
\u2018I don\u2019t think the Department of Finance have any respect for the tourism industry\u2019<\/p>\n