In recent years, pay transparency has become one of the key elements of European equality policy and an important compliance issue in labor law. The amendment to the Labor Code, implementing of Directive (EU) 2023/970 of the of European Parliament and Council of 10 May 2023 on strengthening the principle of equal pay for men and women for the same work or work of equal value through pay transparency mechanisms, introduces a number of new obligations into the Polish legal system. The purpose of these changes is not only to reduce pay discrimination but also to increase the transparency of recruitment processes and remuneration systems in companies.
Scope of new employer obligations
The new provisions require employers to disclose salary information already at the recruitment stage and to ensure that employees have access to information on the criteria used to determine pay and its structure. This entails changes to internal company’s internal regulations, in particular remuneration policies, performance evaluation systems and recruitment procedures. For many businesses, this will require a review ofcurrent practices and implementation of solutions that allow accurate salary reporting while at the same time ensuring the protection of personal data and trade secrets.
Practical challenges
In practice, the implementation of pay transparency requires employers to balance the protection of their HR strategy with the obligation to ensure transparency toward employees and job candidates. Companies will need to provide accessible salary information and be able to justify any differences in pay on the basis of objective criteria such as qualifications, experience or the scope of responsibilities.
Key consequences of the changes
From the employer’s perspective, the amendment to the Labor Code create an incentive to shape remuneration policiesin strategic and appropriate manner. Greater transparency in this area may help build trust within the organization, strengthen the employer’s image and reputation, as well as reduce the risk of legal disputes concerning unequal treatment in employment. At the same time, it requires the implementation of effective risk management tools, including clear internal communication rules and transparent remuneration criteria. Although the amendment introduces additional regulatory obligations, in the long term, these measures may enhance a company’s competitiveness in the labour market. It is also worth noting that failure to comply with pay transparency obligations may result in a fine ranging from 1,000 to 30,000 PLN.
Summary
The amendment to the Labor Code on pays transparency constitutes an important step toward increasing transparency in employment relationships and ensuring the fuller implementation of the principle of equal treatment at work. By introducing EU standards into the Polish legal system, the legislator has imposed a number of new obligations on employers, requiring not only updates to internal documentation but also a broader change in the approach to remuneration policies management. These new regulations should be observed not merely as a control mechanism, but also as a tool for promoting transparency, efficiency and mutual trust in employer – employee relations.
