Employment Law and Labour Law

Forty years ago, the CEO of a Brazilian manufacturer, Semco, opened the company’s books and discovered that, in this case, full financial transparency produced better decisions and higher revenue. What Ricardo Semler did voluntarily at Semco, the EU Pay Transparency Directive now requires — in a considerably narrower form — of every employer in Europe.

The EU Pay Transparency Directive deadline is approaching, yet most Member States have not transposed it into national law. What are employers' obligations right now, and which provisions can be enforced directly even without full national implementation? This analysis examines the legal nuances and provides actionable guidance for multi-jurisdictional employers navigating this uncertain landscape.

On May 21, 2026, an updated draft bill to implement the EU Pay Transparency Directive (“Draft Bill”) was submitted to the House of Representatives.