Right to Information
The European Directive of May 10, 2023, will give employees the right to learn more about the compensation practices within their company. Please note: this does not mean you can demand that the CEO immediately disclose the amount of his or her salary! First, this applies to your colleagues “performing the same work” or “of equal value”—that is, those in the same position. It will also require your employer to provide information on the pay gaps between women and men within the company.
Progression and Criteria
Companies with more than 50 employees will be required to disclose “in an easily accessible manner” the criteria used to determine compensation and salary increases, in order to set out in writing the rules governing salary increases so that they are the same for everyone.
A small revolution in job postings
The European directive condemns “information asymmetry.” It will establish a right to transparency regarding compensation—even before hiring. If you’re applying for a position, the company must inform you of the expected compensation or, failing that, a salary range. The salary must be disclosed up front and can no longer be set arbitrarily after thethe interview. It will also be prohibited for the recruiter to ask the candidate about their salary history. This new legislation should therefore put you in a much better position to negotiate your salary during the job interview.
Penalties
: The directive refers to a right to compensation that would cover the full recovery of back wages and bonuses, “compensation for lost opportunities,” and even non-economic damages. Member states responsible for enforcing this law may not impose a cap on such compensation.
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