[Czechia] New pay transparency laws

Czechia’s labour market will soon undergo significant changes with two major reforms focused on ending wage secrecy, promoting transparency, and addressing gender pay inequality, Expats.cz reports.

Experts say that the changes will help workers in the fight against wage discrimination.

From June 1, a change to Czechia’s Labor Code will reportedly ban employers from including confidentiality clauses in employment contracts to prevent workers from discussing their wages. Preparations are also underway to implement a sweeping EU directive on pay transparency, with the aim of reducing gender pay disparities and promoting wage equality. 

The second major change comes from an EU directive intended to reduce gender wage inequality. The new law includes several key requirements: job ads must include salary information, employers cannot ask applicants about their previous pay, and workers will gain the right to request information about average pay by gender for similar jobs. 

Under the new legislation, companies with more than 100 employees must report wage data to a central system, and the pay gap between men and women should not exceed 5 per cent. The gender pay gap in the Czech Republic is currently around 17 per cent.

While the EU directive aims to improve pay equality, the majority of Czech companies are reportedly unprepared for these changes. A recent survey by recruitment firm Hays and consulting company EY found that two-thirds of companies do not track pay disparities, and over 80 per cent of employers are not ready for the new requirements.

Many business organisations in the Czech Republic - including the Czech Chamber of Commerce and the Confederation of Industry - have called for a delay in the directive’s implementation. They caution that the new rules could increase costs, create legal issues, and put pressure on small businesses. In a joint letter to the labour minister, they requested a two-year delay to allow companies more time to prepare.

Despite concerns, the Czech government is reportedly committed to making the changes, aiming to bring the country in line with EU standards and ensure fair pay for all workers.

Source: Expats.cz

(Link via original reporting)

Czechia’s labour market will soon undergo significant changes with two major reforms focused on ending wage secrecy, promoting transparency, and addressing gender pay inequality, Expats.cz reports.

Experts say that the changes will help workers in the fight against wage discrimination.

From June 1, a change to Czechia’s Labor Code will reportedly ban employers from including confidentiality clauses in employment contracts to prevent workers from discussing their wages. Preparations are also underway to implement a sweeping EU directive on pay transparency, with the aim of reducing gender pay disparities and promoting wage equality. 

The second major change comes from an EU directive intended to reduce gender wage inequality. The new law includes several key requirements: job ads must include salary information, employers cannot ask applicants about their previous pay, and workers will gain the right to request information about average pay by gender for similar jobs. 

Under the new legislation, companies with more than 100 employees must report wage data to a central system, and the pay gap between men and women should not exceed 5 per cent. The gender pay gap in the Czech Republic is currently around 17 per cent.

While the EU directive aims to improve pay equality, the majority of Czech companies are reportedly unprepared for these changes. A recent survey by recruitment firm Hays and consulting company EY found that two-thirds of companies do not track pay disparities, and over 80 per cent of employers are not ready for the new requirements.

Many business organisations in the Czech Republic - including the Czech Chamber of Commerce and the Confederation of Industry - have called for a delay in the directive’s implementation. They caution that the new rules could increase costs, create legal issues, and put pressure on small businesses. In a joint letter to the labour minister, they requested a two-year delay to allow companies more time to prepare.

Despite concerns, the Czech government is reportedly committed to making the changes, aiming to bring the country in line with EU standards and ensure fair pay for all workers.

Source: Expats.cz

(Link via original reporting)