Flashcards on HRM: RTO, Employee Evaluation, and Sustainability

HRM: RTO, Employee Evaluation, Sustainability – A Student Guide

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What is pay transparency?

The degree to which an organisation openly communicates information about employee compensation, including salary ranges, pay scales, and the criteria

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Pay Transparency

36 cards

Card 1

Question: What is pay transparency?

Answer: The degree to which an organisation openly communicates information about employee compensation, including salary ranges, pay scales, and the criteria

Card 2

Question: Why does pay transparency matter in the EU context?

Answer: Because women in the EU earn significantly less for the same work, lack of transparency lets pay discrimination go undetected, and the EU has legislat

Card 3

Question: What was the average gender pay gap in the EU in 2023 according to Eurostat?

Answer: 13% (women earn ~87 cents for every €1 men earn).

Card 4

Question: What key requirement does Directive 2023/970 impose on job advertisements?

Answer: Employers must include salary ranges in job postings.

Card 5

Question: What change does Directive 2023/970 make regarding candidates' salary history?

Answer: Candidates can no longer be asked about their salary history.

Card 6

Question: What right to information does the Directive give employees?

Answer: Employees can request information on their own pay level and averages for colleagues doing comparable work.

Card 7

Question: Which companies must publish annual gender pay gap reports under the Directive?

Answer: Companies with 100+ employees (phased in from 2031) and 250+ employees (required from 2027).

Card 8

Question: What happens if a company's unexplained pay gap exceeds 5% under the Directive?

Answer: A mandatory joint audit (pay assessment) with worker representatives is required.

Card 9

Question: How does the burden of proof shift in pay discrimination claims under the Directive?

Answer: Employers must prove pay differences are based on objective, neutral criteria.

Card 10

Question: What enforcement measures must Member States provide under the Directive?

Answer: They must set real penalties including fines, and employees can claim full compensation for pay discrimination.