AmCham Human Resources Committee session on EU Pay Transparency Directive outlined purpose and recommendations
AmCham Human Resources Committee met to discuss how EU Pay Transparency Directive might reshape company policies. Lenka Simerská of the Ministry of Labor and Social Affairs, Veronika Kinclová of Clifford Chance and Jaroslava Rezlerová of ManpowerGroup Czech Republic outlined basic legislation and recommendations.
Lenka Simerská, Head of Equal Pay project updated us on the current works at the Ministry of Labor and Social Affairs. The Ministry is in the process of preparing the transposition of the Directive. It is important to understand that pay transparency does not mean identical salaries and pay comprises not only salary.
Member states must take necessary measures to ensure that employers have pay structures ensuring equal pay for equal work or work of equal value. By June 2026, all employers need to have pay structures compliant with the principle of equal pay.
Ministry can assist with internal analyses by a tool called Logib. They have developed standardized Equal Pay Audit, companies can take part in the pilot-testing. They develop tools and methodologies, especially for job evaluation, and share good practice. ESF OPZ+ program funded by the EU will offer funding to umbrella employers’ organizations to acquire know-how and support companies in their networks. ’Companies can contact the Ministry of Labor on any kind of consultancy on this,’ said Lenka Simerská. There will be a dedicated team to perform test audits project.
Veronika Kinclová of Clifford Chance guided AmCham member companies through main measures and how to best prepare for the Directive. The Directive sets the minimum standard and will apply to employers in both public and private sectors, all workers who have an employment contract or employment relationship as defined by law, and for certain purposes also to applicants for employment. The issue of gender pay gap has been tackled accross the EU member states with a wide range of approaches and outcomes.
Jaroslava Rezlerová described ManpowerGroup's experience with the Logib assessment tool, sharing key takeaways: The certification process can be done mainly internally (with an external guidance). Project must be prioritised and treated as valuable, with a purpose, assigned capacities and tasks. Internal job/remuneration policy (job grading) is an advantage ("guarantees" the expected outcome and the project can be run faster). The certification process can serve as a key starting point for a systematic and transparent approach to remuneration.
According to World Economic Forum data, the Czech Republic ranks 101st out of 146 countries in gender pay gap. Women in the Czech Republic are on average paid 16.4% less than men, while the EU average is 13%.
Thank you to all participants and AmCham members for an insightful session.
Resources for companies:
https://rovnaodmena.cz/s-logibem-nemusime-praci-na-rovnosti-odmenovani-odkladat/
https://rovnaodmena.cz/logib-pomaha-zamestnavatelum-v-rozvoji-rovneho-odmenovani/
https://rovnaodmena.cz/predani-certifikatu-o-analyze-nastrojem-logib-na-velvyslanectvi-svedska/