Comparison of payroll in companies: the government works to transpose the EU directive by 7 June
Employees will be able to ask employers for information on average wage levels, with the burden of proof reversed in wage discrimination proceedings: in the event of litigation, it is up to the company to prove the reasonableness of decisions
Key points
- The implementation process of the directive
- In the selection process, it is forbidden to ask the candidate about his or her salary
- After recruitment more emphasis on transparency than privacy
- Evaluation procedure in the event of deviations of 5%
- Reporting obligation within one year for companies with 250 employees
- Rotondi (Lablaw): it's a paradigm shift
The government has until 7 June to transpose EU Directive 2023/970, which aims to strengthen the application of the principle of equal pay for men and women for equal work or work of equal value, through pay transparency and enforcement mechanisms.
The aim is to achieve full gender pay parity, considering that in Italy women's salaries in the private sector are on average 70% of men's salaries (in the public sector they are on average 77%). There are several innovations that will have an impact on the organisation of companies, let's see the main ones and what are the timeframes for implementation.
The process of implementing the directive
At the Ministry of Labour, as provided for by Law No. 15 2024 containing the delegation to the government to transpose European directives, the first meeting was held with the social partners, with a view to preparing a draft legislative decree; companies and trade unions will be convened again in the coming weeks to finalise a text to be shared, to be then taken to the Council of Ministers for the first go-ahead. After that, the parliamentary process can begin and then the draft legislative decree can return to the Council of Ministers for the final approval, which, in order to comply with the timeframe set by the European directive, must take place before the deadline of 7 June.
In the selection process, it is forbidden to ask the candidate about his salary
In the phase preceding the candidate's selection interview, the employer must transparently provide information on the starting salary or salary range of the vacant position. The employer will not be able to ask the candidate about current or past salary. The rationale is to reduce discretion and possible risks of discrimination, so when the company publishes a notice and opens a position for a certain job, it must already be clear what the salary offered will be, regardless of what the candidate's salary is.
After recruitment more emphasis on transparency than privacy
Once hired, workers will be able to ask employers for information on average salary levels, of categories of workers doing the same job or a job of equal value, the criteria used to determine salary and career progression, with data disaggregated by gender. The company will not be able to invoke the principle of confidentiality, because what prevails is the need to ensure maximum transparency, even if it will not be possible to find out the salary of a colleague, but the average salary levels of those performing the same or similar tasks.
