DLA Piper’s 2022 Gender Pay Transparency International Survey has highlighted the recent developments across the globe in regard to laws targeting gender pay gaps. As the focus on workplace pay and gender equality will not be flying off the radar any time soon, it is critical from a risk and talent perspective to stay abreast of the latest developments.
In the UK, the Equalities and Human Rights Commission has not shown any restraint is naming and shaming employers who fail to comply with a 2018 requirement for large businesses to publish their gender pay gap.
Similarly, in the EU, many countries mandate employers to be transparent about gender pay differences. Key jurisdictions including France, Germany, Italy and Spain have sometimes onerous non-compliance laws highlighting a trend towards increased governance in this area. Another piece of legislation that is up for debate in the EU Parliament is a proposal for a directive to strengthen equal pay and principles through pay transparency. This measure aims to establish common minimum requirements with the option for member states to introduce more favourable standards.
Outside of Europe, other countries are too headed towards requiring pay reporting and transparency. In Israel, all private sector companies have been obligated to report their gender pay gap since 2020. While in the US, several states including California and Illinois have strengthened legal requirements including mandating private employers to obtain an ‘equal pay registration certificate’.
Looking ahead, businesses can expect more legal developments to appear across the globe. Though some countries may lag behind other parts of the world, it would be best practice to pay early attention to gender pay issues as part of a business’ overall risk assessment.
Paul Arkwright
Publisher
