Italy has published its draft legislation implementing the EU Pay Transparency Directive, with a key national design choice that could significantly affect how equal pay risk is assessed in practice.
Italy has published its draft legislation implementing the EU Pay Transparency Directive, with a key national design choice that could significantly affect how equal pay risk is assessed in practice. We examine the key provisions and what they mean for employers operating in Italy.
The draft makes national collective bargaining agreements the primary reference point for determining “work of equal value” - an approach that may broaden comparator pools, increase equal pay exposure, and shift judicial focus away from methodology towards the pay gaps themselves. The draft was first published on 3 February and then updated on 5 February, with several important changes. While further changes may still be made before it is finalised, employers should be considering the implications now.
The draft applies to all employment contracts, whether fixed-term or indefinite, including part-time and managerial positions. Apprenticeship contracts, domestic work contracts, and intermittent work contracts are excluded. Notably, temporary employees, who were included in the original draft, were removed from the amended version published on 5 February.
Pay is defined broadly as basic salary or wage and all sums and values paid by the employer,...
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