Proposed amendments to the Labour Code: Enhancing pay transparency and employee rights

At a glance

• A draft amendment to the Labour Code was published on the Sejm's website which aims to increase pay transparency.
• The draft bill aims to align with the main objective of the EU Pay Transparency Directive (Directive).
• The main provisions of the bill include employers must include proposed salary ranges in job advertisements, employees can request their own pay level and the average pay level for similar work, and employers must provide access to objective, gender-neutral criteria for determining pay levels and progression.
• The draft bill is in early stages and under public consultation until January 2025, with potential changes expected.

A draft amendment to the Labour Code was published on the Sejm's website which aims to increase pay transparency. One of the key elements of the proposed changes is an obligation that employers must include proposed salary ranges (including minimum and maximum amounts) in job advertisements.

Current employees will have the right to request pay information from their employers, including their own pay level and the average pay level of employees doing the same or equivalent work, with the option to break this down by gender. Employers will have 14 days to respond to such requests and must remind employees annually of this right. 

Employers must also provide access to the criteria used for determining pay levels and progression. These criteria must be objective and gender neutral.

The draft amendment introduces a new focus on pay transparency, requiring salaries and their levels to be made public both during and before the employment relationship. Employers are not permitted to prohibit employees from disclosing information about their pay. Currently, such clauses can be found in many internal policies and contracts so this change will require modification of an employer's current approach to salary confidentiality. 

It is however important to note that the draft bill is still in the early stages of the legislative process and is currently under public consultation until early January 2025. The provisions outlined in the bill are likely to undergo many changes as the legislative process continues.

Although the draft bill aims to align with the main objective of the Directive, which focuses on strengthening the principle of equal pay for men and women through pay transparency and enforcement mechanisms, it does not fully implement all of its provisions. Notably, it lacks the reporting requirements for employers outlined in Article 9 of the Directive. Therefore, it is likely that full implementation of the Directive in Poland will take more time. The reporting requirements are expected to be addressed in a separate draft law.