[Czech Republic] Pending gender pay gap disclosure sparks controversy

In the Czech Republic, work is underway to implement an upcoming EU directive that will require companies to disclose employee pay scales to promote gender pay equality. But the proposed changes have provoked a heated debate between businesses, workers and politicians, Expats.cz reports.

A recent report by Czech newspaper Právo, described in Novinky.cz, said the Ministry of Labor and Social Affairs is currently drafting legislation to bring Czechia into compliance with the new EU rule. The nation has until 2025 to implement the law.

Organisations will reportedly, at a minimum, have to provide average earnings broken down by gender for the same or comparable job roles. The Czech Labor Code already prohibits unequal compensation for equal work yet surveys continue to find gaps in what men and women earn.  

Women earn, on average, 13 per cent less for performing the same job title as men.

Proponents of the change argue that wage transparency is necessary to eliminate discrimination and promote fair treatment in the Czech labour market.

Objections

Businesses objecting to the proposed changes claim that performance reviews, seniority, expertise in certain projects and loyalty are contributing factors to an individual's remuneration beyond basic job titles, irrespective of gender.

They have warned that revealing specific salaries could fuel resentment among lower earners who feel entitled to the same pay as top talent, hindering companies' ability to reward some employees and respond flexibly to varying employee contributions. 

Member of parliament for the opposition ANO party Aleš Juchelka reportedly sees the reforms as too reminiscent of past communist-era wage controls, under which people taking on more work wouldn’t be remunerated appropriately.

Executives are divided on the best approach to take if disclosure does become mandatory. Larger multinationals currently analyse their own gender pay gaps but concerns have been expressed that reporting obligations may burden small enterprises. 

Petr Mitura - executive director of the BR Group - reportedly said that publishing average salaries for a position is adequate while revealing the tops and bottoms of pay scales had the potential to cause tension and a lot of administrative work. 

Implementation details remain under discussion and stakeholders are waiting for the Czech unions' formal stance. With the business community pushing for careful calibration, the Ministry of Labor reportedly faces the delicate task of crafting rules that promote equity without hindering team cohesion.

Source: Expats.cz

(Link via original reporting)

In the Czech Republic, work is underway to implement an upcoming EU directive that will require companies to disclose employee pay scales to promote gender pay equality. But the proposed changes have provoked a heated debate between businesses, workers and politicians, Expats.cz reports.

A recent report by Czech newspaper Právo, described in Novinky.cz, said the Ministry of Labor and Social Affairs is currently drafting legislation to bring Czechia into compliance with the new EU rule. The nation has until 2025 to implement the law.

Organisations will reportedly, at a minimum, have to provide average earnings broken down by gender for the same or comparable job roles. The Czech Labor Code already prohibits unequal compensation for equal work yet surveys continue to find gaps in what men and women earn.  

Women earn, on average, 13 per cent less for performing the same job title as men.

Proponents of the change argue that wage transparency is necessary to eliminate discrimination and promote fair treatment in the Czech labour market.

Objections

Businesses objecting to the proposed changes claim that performance reviews, seniority, expertise in certain projects and loyalty are contributing factors to an individual's remuneration beyond basic job titles, irrespective of gender.

They have warned that revealing specific salaries could fuel resentment among lower earners who feel entitled to the same pay as top talent, hindering companies' ability to reward some employees and respond flexibly to varying employee contributions. 

Member of parliament for the opposition ANO party Aleš Juchelka reportedly sees the reforms as too reminiscent of past communist-era wage controls, under which people taking on more work wouldn’t be remunerated appropriately.

Executives are divided on the best approach to take if disclosure does become mandatory. Larger multinationals currently analyse their own gender pay gaps but concerns have been expressed that reporting obligations may burden small enterprises. 

Petr Mitura - executive director of the BR Group - reportedly said that publishing average salaries for a position is adequate while revealing the tops and bottoms of pay scales had the potential to cause tension and a lot of administrative work. 

Implementation details remain under discussion and stakeholders are waiting for the Czech unions' formal stance. With the business community pushing for careful calibration, the Ministry of Labor reportedly faces the delicate task of crafting rules that promote equity without hindering team cohesion.

Source: Expats.cz

(Link via original reporting)