Beginning in June 2026, companies will be required to comply with new legal obligations stemming from the transposition of EU Directive 2023/970.

Businesses can no longer overlook the issue of pay equity. Aligning with these new rules is not just a matter of legal compliance, but a genuine opportunity to enhance corporate reputation and market appeal.

Failure to comply carries legal and reputational risks, as well as the potential for financial penalties.

Preparing in advance will ensure that the company not only avoids legal pitfalls but also actively contributes to a fairer and more inclusive work environment.

Companies with more than 100 employees will be required to implement concrete measures to ensure pay transparency and address the gender pay gap.

But what exactly must companies do?

1. Prepare an Annual Gender Pay Gap Report: Every company must publish a detailed report on pay differences between men and women, covering not only base salary but also bonuses, benefits, and allowances. This means all components of compensation must be clearly disclosed.

2. Reversal of the Burden of Proof: If employee reports pay discrimination, it will be up to the company to justify the disparity and prove that no discrimination occurred. This shifts the legal balance in favor of employees and requires companies to thoroughly document all pay-related decisions.

3. Internal Pay Audit: Companies will need to conduct ongoing monitoring of their pay policies to identify and correct inequalities before they lead to legal consequences. This audit will no longer be optional—it will become a necessity.

4. HR Training: It is essential that HR managers are trained to recognize and prevent pay discrimination. Transparency must become an integral part of the corporate culture.

The Law Firm firm remains available for any further clarification.