The principle of "equal pay" is the core concept of the Pay Transparency Directive, and rests on equal pay for equal work or work of equal value between men and women. There are also specific provisions that apply to applicants for employment. Under certain conditions, domestic workers, on-demand workers, seasonal workers, voucher-based workers, platform workers, workers in sheltered employment, trainees and apprentices also fall within the scope of the directive. The "workers" must have an employment contract or employment relationship as defined by law, by collective labour agreements and/or practice in force in each member state, taking into account the case law of the Court of Justice such as FNV/Kunsten Informatie en Media (C-413/13) and Betriebsrat der Ruhrlandklinik (C-216/15). "Workers" also includes those in management positions. "Workers" within the meaning of the Pay Transparency Directive is broad, and includes part-time workers, temporary contract workers and persons with an employment contract or employment relationship with a temporary agency. As it lacks a definition of employers, we will likely have to wait for it to be implemented in the Netherlands to find out which enterprises qualify as employers. The Pay Transparency Directive applies to "employers" in public and private sectors. This strategy resulted in the EU Gender Balance Directive in November 2022, meant to improve gender balance among the directors of large listed companies with their corporate seat and listing in an EU member state. The Pay Transparency Directive follows from the EU Gender Equality Strategy 2020-2025, presenting policy objectives and actions needed to make significant progress towards a gender-equal Europe.
This directive was transposed into Dutch legislation on 1 August 2022. The Pay Transparency Directive is in alignment with the rationale behind the directive on transparent and predictable working conditions ( Directive 2019/1152), requiring employers to be more transparent about the essential aspects of employment relationships, among other things. The European Parliament adopted the directive in March 2023.
To address the gender pay gap, the European Council adopted the Pay Transparency Directive on 24 April 2023, introducing measures to ensure that women and men in the EU receive equal pay for equal work.
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