Employers are facing significant changes in the area of equal pay. The EU Pay Transparency Directive requires employers to disclose their remuneration practices and to justify any pay gap. Where an employer fails to comply with its obligations under the Directive, the burden of proof in remuneration claims is reversed.
The Pay Transparency Directive is expected to be implemented into Dutch law no later than 1 January 2027. In this context, the Dutch government has published a legislative proposal setting out the framework for implementing the Directive in the Netherlands. The proposal clarifies how the Directive's requirements will be embedded in Dutch law and what specific obligations will apply to employers. Employers must take action now to prevent equal pay claims being brought against them. Those that fail to act in time risk facing claims and administrative enforcement measures, such as penalties.
A complex and cross-cutting piece of legislation
The Pay Transparency Directive and the Dutch legislative proposal are highly technical in nature and cut across multiple areas of law. They touch on the current legal framework regarding equal pay, job evaluation, reporting obligations, privacy law, enforcement and collective actions. New reporting obligations will automatically raise questions under the GDPR, and various standards set out in the Directive and the Dutch legislative proposal will be enforced through administrative law. It is therefore essential that in-house lawyers and legal counsel maintain a clear and comprehensive overview of the full scope and implications of the new requirements.
Prepare now
Employers will need to ensure that their classification and remuneration systems, as well as their job grading structures, are brought into line with the new legislation before the implementation deadline. This requires a thorough understanding of the legislation and a practical approach to ensuring compliance within the employer's organisation.
How can we help?
We advise employers on the full spectrum of equal pay issues. Our work includes advising on pay structures and transparency requirements, providing practical guidance on preparing for upcoming obligations under the Pay Transparency Directive and the Dutch legislative proposal, handling individual and collective equal pay claims, and advising on employee participation and consultation aspects.
We also regularly publish content on this topic, including short reads, e-books, podcasts, and articles, providing an up-to-date overview of these developments. Through these publications, we offer practical legal guidance to help employers meet their statutory obligations in the area of equal pay. We will organise masterclasses and seminars in the run-up to the implementation of the Pay Transparency Directive. These will cover the latest developments, allowing participants to explore the topic in more depth and discuss practical challenges in an interactive setting.
Key contacts
Astrid Helstone
Phinney Disseldorp
Fiona Stewart
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The current remuneration policy within the judiciary has resulted in a gender pay gap.
Publications & Insights
Team
Astrid Helstone
Phinney Disseldorp
Wouter den Hollander
Maartje Herweijer
Loes van Dijk
Minke Reijneveld