Poland became the second European Union member state (third EU jurisdiction) to propose amendments to its Labour Code to transpose the requirements of the EU Pay Transparency Directive. Poland, which does not currently have pay transparency or pay reporting requirements, introduced the amendments in December.
Poland’s proposed transposition of the EU Pay Transparency directive therefore differs from Sweden and the French Community of Belgium. With that in mind, Poland’s amendments largely adopt the pay transparency (allowing visibility into salary ranges for employees and job postings) provisions of the EU Directive. The proposed amendments do not include the pay reporting (submitting gender pay gap metrics) provisions of the EU Pay Transparency Directive.
Overview of the Proposed Amendments
Poland’s proposed amendments mainly address the pay transparency elements of the EU Pay Transparency Directive. The key changes for employers in Poland to be cognizant of are below.
- Right to information requests: Employees have the right to ask the employer for information about their individual salary level and average salary levels, broken down by gender of other employees who are performing equal work or work of equal value. Employers would have 14 days to provide this information.
- Salary range information on job postings: Employers would need to provide a minimum and maximum levels of pay on job postings of any kind. Employers would also be allowed to indicate that the pay is negotiable. Additionally, job applicants have the right to be informed by their prospective employer of:
- the initial remuneration or its range based on objective, gender neutral criteria provided for a given position.
- the provisions of the collective agreement applied by the employer in relation to a given position.
- Employee right to disclosure: Employers would be prohibited from preventing employees from disclosing pay information with other employees.
- Pay progression transparency: Employers with 50 or more employees would be required to provide an employee access to how pay levels are determined and their pay level progression.
On-Demand Webinar: Understanding Poland’s Proposed Amendments to the Labour Code
Polish employers that fail to comply with the above transparency requirements or fail to pay an employee at or above the minimum pay level in the job posting are subject to monetary sanctions. Violations can result in fines between 1,000 zlotys and 30,000 zlotys.
Similarities and Differences to the EU Pay Transparency Directive
The pay transparency provisions from the EU Pay Transparency Directive will be implemented almost exactly based on Poland’s proposed amendments. Employers would be required to provide salary ranges in job postings and comply with employees’ right to information about pay upon request.
Access Our EU Pay Transparency Directive Guide
However, there are some notable differences. There would be a more aggressive timeline (14 days) for complying with right to information requests. And, as noted above, there is no detail concerning pay reporting requirements in the current draft proposal. Lastly, Poland has specified monetary fines for non-compliance, which was only a suggestion in the EU Pay Transparency Directive.
Based on the three jurisdictions that have proposed amendments or transposed the directive into law, the pay transparency provisions appear to be the easiest to adopt. The reporting provision could be phased in later in the process, which organizations will need to remain cognizant of.
Complying with Poland’s Proposed EU Directive Legislation
Organizations with operations in Poland now have the pay transparency framework of what will be required. Some initial steps to prepare for compliance include:
- Pay explainability. Prepare to explain how you differentiate and define performance in setting base salaries. Pay transparency legislation means workers must be given access to criteria used to define salary and pay raises.
- Analyze pay gaps. Identify the causes where pay disparities exceed 5%. If there is no objective justification, we recommend addressing any anomalies to remove those unexplained gaps.
- Intersectional pay equity analysis. Intersectionality is essential to close the gender pay gap. It recognizes that individuals can experience discrimination and inequality based on the intersection of multiple identities, such as race, gender, disabilities, age, and more. Intersectional discrimination is defined in the EU Transparency Directive.
Trusaic can help you comply with Poland’s proposed requirements under the EU Pay Transparency Directive. Our three-pronged approach is a cut above other solutions:
- Leverage PayParity® to understand, explain, and resolve pay inequities across gender, race, age, and more. Conduct proactive or compliance-driven analyses to pinpoint disparities, reduce legal risk, and build trust by ensuring fair, transparent pay practices across your workforce. And now, with R.O.S.A., you can remediate pay inequities with precision. This innovative tool enables you to run hundreds of simulations quickly to find the most impactful pay adjustments, ensuring your budget is spent where it matters most.
- Leverage the Regulatory Pay Transparency Reporting™ solution to confidently report and comply with global pay transparency requirements like Poland’s.
- Leverage our Workplace Equity® product suite to communicate narratives and share salary ranges with confidence. Communicate the sources of your pay gaps, progress objectives, and corrective measures to employees and internal stakeholders. Show data-backed progress in your pay gaps over time.
Trusaic is GDPR compliant and can assist any organization in any EU state in meeting its obligations under both the EU Corporate Sustainability Reporting Directive and the EU Pay Transparency Directive.
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