At the beginning of May, a draft act was published to strengthen the enforcement of the right to equal pay for men and women for equal work or work of equal value. This act will significantly expand employers’ obligations in documenting and reporting employee wages within the organization.
The draft implements EU Directive 2023/970. The new regulations will primarily affect organizations employing at least 100 workers. Smaller entities might fulfil some tasks optionally but are still required to develop criteria and solutions for analysing employee wages.
New Obligations for Employers
Every employer, regardless of size, will be required to undertake the following actions:
- assess the value of work in a specific position or type of work in an objective, neutral, and non-discriminatory manner.
- determine factors used to establish employee wages.
- classify positions and determine categories of employees performing equal work or work of equal value.
- prepare a wage structure to determine if employees are in a comparable situation.
Regulations require employers to ensure employees have easy access to factors used to determine wages, wage levels, and wage increments. For entities employing fewer than 50 people, such information will be provided upon the employee’s request.
Employees are granted the right to request information about their individual wage levels and the average wage level by gender for categories of employees performing equal work or work of equal value.
Employers with at least 100 employees will additionally be required to:
- conduct joint wage assessments, provided the statutory conditions are met.
prepare and submit a pay gap report:
- every three years for employers with at least 100 employees.
- annually for employers with at least 250 employees.
This report will include information on the pay gap, the median pay gap, and the percentage of employees receiving complementary or variable components based on gender and employee categories. For smaller employers, preparing a pay gap report will be optional.
Additional resolutions
- Penalties ranging from PLN 2,000 to PLN 60,000 for non-compliance with obligations by the employer or a person acting on their behalf.
- Right to compensation for employees where the employer has violated the principle of equal treatment.
- Nullity by law of any provisions in employee documents that prevent an employee from disclosing their wage information.
- Procedures for cooperation between employers and workplace trade unions.
- Reversed burden of proof – in cases of alleged direct or indirect discrimination regarding the right to equal pay, the employer must prove they acted based on objective reasons when determining wages.
- Rules and procedures related to the protection of employee personal data.
- Obligation for employers to provide wage information to job applicants.
Key Deadlines
- By March 31 – preparation of the pay gap report.
- By September 30 – taking effective remedial actions based on the report’s results.
- By October 31 – verification of the necessity for joint wage assessments.
- By November 30 – preparation of joint wage assessments.
- Within 10 months – implementation of effective remedial actions.
The act is set to enter into force six months from its announcement. Depending on the legislative process, employers with at least 150 employees may be required to submit the first pay gap report by June 7, 2027.
Granting employees and public administration authorities the ability to obtain information about wage transparency from the date the law comes into force means organizations should already start preparing to comply with the new obligations.
How Can We Help?
We offer comprehensive support to help organizations prepare for these changes, including:
- Audit of Employment Documentation – reviewing agreements and internal regulations to align with new laws, especially concerning prohibited provisions and employer obligations in providing information.
- Data Analysis – analyzing employee wages and duties for position classification.
- Development of Organizational Practice – establishing internal procedures for collecting, analyzing, and sharing data with interested parties.
- Support in Employee and Institutional Relations – assistance in the process of providing information, responding to inquiries, and justifying decisions.
- Training for HR Departments and Management – conducting dedicated training on wage transparency.