Salary-related confidentiality clauses will not need to be removed from individual employment contracts, but they will need to be amended so as not to prevent the exercise of the rights set out in Directive (EU) 2023/970 on pay transparency

The Pay Transparency Directive does not require employers to disclose employees’ individual pay, but it will limit the ability to use confidentiality clauses to prevent employees from discussing their own pay for the purpose of verifying or defending their right to equal pay. However, the directive does not give employees access to their colleagues’ nominal pay. Employers will, nevertheless, have to be able to justify pay differences based on objective criteria, such as experience, skills, performance or level of responsibility, and, once the directive has been transposed into national law, review their internal clauses and policies on pay confidentiality.

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