[Germany] Potential legal risks from missed EU Pay Transparency Directive deadline

In Germany, the EU Pay Transparency Directive’s June 7 implementation deadline has been missed. Potentially leaving employers exposed to lawsuits and penalties, Ad Hoc News reports.

The directive gives employees the right to request average pay data for comparable roles, broken down by gender. 

Germany’s ruling coalition reportedly remains divided on how to translate the rules into national law. Now a formal infringement procedure from Brussels could follow.

Under the Directive, companies must disclose salary ranges in job postings, ban questions about previous pay during interviews, and (for companies with 100 or more employees) regularly report on their gender pay gap. 

In 2024, Germany's unadjusted gender pay gap was 15.6 per cent. The adjusted figure is approximately 6 per cent.

Legal experts have reportedly warned of an increased litigation risk, citing a 2024 ruling from the Federal Labour Court which, combined with the new directive, could open the door to compensation claims.

Source: Ad Hoc News

In Germany, the EU Pay Transparency Directive’s June 7 implementation deadline has been missed. Potentially leaving employers exposed to lawsuits and penalties, Ad Hoc News reports.

The directive gives employees the right to request average pay data for comparable roles, broken down by gender. 

Germany’s ruling coalition reportedly remains divided on how to translate the rules into national law. Now a formal infringement procedure from Brussels could follow.

Under the Directive, companies must disclose salary ranges in job postings, ban questions about previous pay during interviews, and (for companies with 100 or more employees) regularly report on their gender pay gap. 

In 2024, Germany's unadjusted gender pay gap was 15.6 per cent. The adjusted figure is approximately 6 per cent.

Legal experts have reportedly warned of an increased litigation risk, citing a 2024 ruling from the Federal Labour Court which, combined with the new directive, could open the door to compensation claims.

Source: Ad Hoc News