Skip to main content

The pay transparency era is here. Last year, we saw a steady drumbeat of new pay reporting requirements in Europe and around the globe, a post-pandemic revival of Gender Pay Gap reporting in the UK, a laser focus on pay range transparency in the U.S., and more employees openly discussing and sharing their pay. With the new EU Pay Transparency Directive approved, we can expect to see even more transparency on the horizon.

With a steady stream of new regulations for companies to digest and internalize, here is a summary of what the EU directive is and what it could mean for your organization:

What is the EU Pay Directive?

The new EU Pay Transparency Directive aims to establish rules for more transparency and effective enforcement of equal pay principle between women and men, as well as to improve access to justice for victims of pay discrimination in EU member countries. The new directive will require that employers have pay structures in place to ensure that there are no gender-based pay differences between workers performing the same work and between workers performing work of equal value that are not justified by objective and gender-neutral factors.

With Britain departed from the EU, the new directive will not apply to organizations within the UK. Still, it does signal a growing direction of travel-for-pay legislation that UK employers may ignore at their peril. Initially, UK-based businesses that hire internationally may model their policies on the Directive, in a bid to create global harmonization of pay regulations and company culture. And that will impact the UK labor market more broadly, meaning more progressive organizations will be more attractive to potential employees. In any case, ignoring the regulations will only delay the inevitable.

What Will this Mean for the EU?

Employers will have to move from just thinking about pay between workers in the same role to comparing pay between roles of equal value. This will require organizations to establish a methodology to compare the value of work with objective criteria.

This directive also means that pay scale disclosure laws — and more transparency — are coming soon to Europe. Employers must provide information about the initial pay level or its range in the job vacancy notice or before the job interview. Pay secrecy will be banned as the Directive bans pay secrecy confidentiality clauses. Employers will not be allowed to ask prospective workers about their pay history. Job titles must be gender-neutral (i.e., no “fireman”).  And finally, employers must make accessible to workers a description of the gender-neutral criteria used to define their pay, pay levels, and pay progression.

Also included in the Directive are better employee information rights and compulsory public pay gap reporting for employers.

The Global Mindset Shift

While the Directive itself is not unexpected, many of the requirements are, and will demand a new approach to pay equity and transparency in the EU.

With these new regulations emerging in the EU, leading UK companies are already taking the initiative beyond just mandatory pay gap reports. Instead, they embrace pay scale transparency as a principle, not just a legally required chore. Without a doubt, it will be the companies that make a start now who will excel when the UK eventually enforces transparency legislation.

Regardless of what companies make of pay transparency legislation, the growing move towards global harmonization proves that similar laws could soon arrive in the UK. With the information we have access to regarding the EU’s movements, there is a plethora of instructions on which organizations in the UK can and should take advantage of.

By Zev Eigen, Founder & Chief Data Scientist, Syndio.

Share this post:


Sally Fletcher
Sally Fletcher

Left us a 5 star review

Sally Fletcher
December 12, 2023

I would highly recommend agilis recruitment to anyone looking for work. I was contacted a few weeks ago by Chris, who matched the skills I have to an opportunity I was unable to refuse. He was professional and knowledgeable, but also friendly and down to earth. With quick response times, he was able to answer every question I had about the role whilst selling my skills and personality to the company before I had even met them. The input form Chris throughout the process, not only made everything easier but also it took the pressure off massively. I am very grateful. Thank you.

Jon Ives
December 11, 2023

Chris has done a great job for me. It's most refreshing to have a recruiter that both understands the role being recruited and listens to the candidate's requirements and concerns. Top marks!

Michael-William Kelly
December 2, 2023

It was great to work with Chris at Agilis to find my new role. He was always on hand to guide me through the process and make sure I was fully briefed prior to each interview. I would happily use Chris to find me a job... although I'm very happy where I am now! M-W Kelly

Eric Edge
October 31, 2023

Had a top experience with Edd. Sorted me 3 interviews with my preference of company, landed a role very quickly after. Professional + Friendly guy, would recommend.

Edna Atkins
July 17, 2023

An excellent recruitment experience. From the initial contact and throughout the interview process, Chris and his team excelled. I can highly recommend this agency.

Brendan Dodge
May 15, 2023

Chris from Agilis recruitment was fantastic. Professional and friendly; from providing the role, to the level of contact throughout the process.

Jen Cummings
May 15, 2023

Edd was great, I had some bad experiences with recruiters whilst looking for a new role but Edd restored my faith!

March 29, 2023

Chris at Agilis was professional throughout the entire process and was always available to discuss any concerns. He also made sure to only flag roles that I would have a genuine interest in. Thanks again Chris!

Mac Beirne
March 1, 2023

Chris Ellsworth was my recruiter and I was greatly impressed with the level of his assistance throughout the process from start to finish. He provided me with job role applications that were personalised to me based on what I told him I was looking for. If there was any confusion, I was always able to contact him throughout the whole process and ask for clarification which he would then, always happily give. Chris genuinely made me feel that he wanted me to get the role as much as I did and helped me with every step on the way.

subhash d
May 24, 2022

I had a great experience with Ed and Agilis. Found me a job which was the perfect fit and supported me along the way. Thank you so much for the support Ed.

Jessica Stafford
May 10, 2022

Had a great experience with Agilis Recruitment. Ed helped me find the perfect role for me in a great business. He also was very professional, cooperative but most importantly, understood what was important to me and listened to what I was looking for. Thank you Ed!

Arthur Guide
February 25, 2022

Amazing experience with Agilis, a professional company. I have no words to thank Edward. He found a great role for me.

Miles Jarvis
February 5, 2021

I had a great experience with Ed and Agilis. It was great to have a recruiter who understands exactly what his clients are looking for in a candidate. 5 stars!

Damian Marchewka
February 2, 2021

Ed was great, found me a job which was the perfect fit and supported me along the way, solid agency

Nadia Mkinsi
May 27, 2020

Laura is a lovely individual and easily the best recruiter I have ever worked with: proactive without being pushy, professional without lacking sincerity, and most importantly, she genuinely cares about her clients. She was incredibly conscientious in understanding my background and aspirations, and matched me with a role I WAS really excited about. I knew I was in good hands from our very first conversation – and I am happy to say I am a month into my new job and loving it!

Dean Rudge
April 21, 2020

I worked with Ed when securing my role. It was a massive step in the direction I wanted to move my career in and Ed was pivotal in making that happen. I liked that right from the start he was not pushy, he listened to what I had to say and feedback and he kept in regular contact without bombarding me, using the most suitable form of messaging whether it be LinkedIn, Email or a Phone Call. I would highly recommend Ed and the guys at Agilis - keep up the great work guys!

Paul Stonuary
March 30, 2020

A really nice team to do with. Proactive, prompt and supportive - just what you want, but rarely find in a recruitment agency.

Chris Harvey
March 23, 2020

Have found Agilis recruiting fantastic. Cannot rate them highly enough! Give them a go for all recruitment needs!

Harry Ray
March 20, 2020

Laura and Ed at Agilis helped me get placed last year, and Laura was exceptionally accommodating and patient, calling me outside of hours when it was convenient for me and keeping me in the loop about everything that was going on. I'm happy with my role and feel like the guys at Agilis really put time and effort into their work -- thank you!

Tarnea Garvey
March 20, 2020

My experience with Agilis has been great. I found Laura to be incredible helpful and always ensured she remained in contact with me throughout my job search. Thankfully I managed to find a new job through Agilis and the company has turned out to be everything that they told me the it would be! 5 Stars from me!!

Alex Dewey
March 19, 2020

Great experience with Agilis. Following relocating to Bristol I’d found myself having conversations with a couple members of the team. I’d expressed how important it was for me to find the right role but also due to circumstance I needed the process to be accelerated as much as possible. Laura was my main point of contact and managed to find me the best role I’ve ever had in what must be record time. I couldn’t rate their work higher and will definitely be my first point of contact when looking for new opportunities. Thanks again!

Harry Rossiter
March 19, 2020