This is the first instalment in a three-part series examining the EU Pay Transparency Directive (the “Directive”) and its implementation in the Czech Republic. Part 1 introduces the Directive’s key requirements and the proposed Czech transposition. Part 2 will address the amendments to the Labour Code, focusing on employers’ obligations towards employees and candidates, while Part 3 will examine the changes to the Labour Inspection Act and other legislation, covering employers’ obligations towards the authorities.
Adopted on 10 May 2023, the Directive aims to address the persistent gender pay gap. Previous non-binding instruments, including the European Commission’s 2014 Recommendation, have proved insufficient. Enforcement of the equal pay principle was hampered by opaque remuneration systems, an unclear definition of work of equal value, and procedural barriers faced by victims of discrimination.
The Directive introduces binding rules that establish minimum standards applicable to all Member States and must be transposed into national law by 7 June 2026. The Czech Republic is, however, not on track to meet the transposition deadline. While the Ministry of Labour and Social Affairs has prepared a draft amendment to the Labour Code and related legislation, the first changes are not expected to take effect until 1 January 2027, approximately six months after the transposition deadline.
The cornerstone of the Directive is the obligation for...
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