Pay transparency across borders: A multijurisdictional Q&A - JD Supra
[co-author: Muhammad Vurney]
Pay transparency has moved rapidly up the global employment law agenda, reshaping how organizations approach hiring, compensation, and workforce equity. From the EU's landmark Pay Transparency Directive to evolving national frameworks in Germany, France, Italy, the Netherlands, the U.S., Mexico City, Spain and the UK, employers are navigating a patchwork of disclosure rules, reporting obligations, and enforcement mechanisms.
In this Q&A article, we unpack how these requirements vary across jurisdictions, exploring what they mean in practice and providing guidance to help employers align with fast-changing expectations around equity, compliance, and workplace culture.
France
Declining the constitutional general principle of equal treatment between all employees, French case law has established the principle ‘equal pay for equal work’, requiring employers to ensure equal remuneration to all employees in the same situation (especially performing the same work or a work of equal value).
A pay gap between employees performing equal work may nevertheless be lawful if the employer justifies it by objective and relevant grounds unrelated to any discrimination (seniority, experience, qualifications, etc.). Where it results from a company bargaining agreement or a company-wide collective agreement, the pay gap may also be presumed to be justified.
More specifically, the French Labor Code (articles L. 3221-2 to L. 3221-6), require all employers to...
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