However, despite the lack of the final details of the legislation, it is generally considered that the core principles and requirements of the Directive are clearly set out, it is still recommended that employers continue (or start) their preparations, as there are a number of obligations that are going to arise for all employers under the Directive, with significant penalties and consequences for lack of compliance.

With the overall objective of eliminating the pay gender gap and pay secrecy, through promoting transparency on pay rates and progression, and the provision of information rights for employees, the following are the main areas that employers need to pay attention to immediately:

Recruitment Practices

• Salary ranges/starting salary must be available for advertised jobs
• Applicants cannot be asked about current salary in interviews

Information Rights

• Employees will have the right to request information on the average rate of pay, by gender, for work of equal value in their pay category, (which extends beyond the principle of equal pay for same work).

Pay Structures & Progression Principles

• Related to the broad information rights that will apply, employers will be required to have a clear pay policy in place that outlines how salaries are set and how pay progression happens.

Reporting

• Reporting requirements will be implemented on a phased basis with employees with over 250 employees reporting annually, starting in 2027, whereas those with 100 – 249 will report every three years, and this will be phased in.

(It also remains open to Ireland to require reporting from employers who had less than 100 employees.)

• All differences must be explained by gender neutral criteria that are based on the skills, responsibilities, effort and conditions that apply to each role.

• Reporting that identifies an unexplained pay gap above 5%, must be reviewed and remedied within 6 months or else employers will be required to conduct a joint pay assessment with workers representatives.

Actions

So, notwithstanding the final details of how Ireland will transpose the Directive are not yet known nor are the related tools that the government are due to issue to support implementation available, there are a number of practical steps that can be taken now:

Audit and internal benchmarking of current pay levels and identification of any potential issues

Definition of job families and levels

Evaluation of roles to determine work of equal value and creation of job categories

Documentation of salary bands and pay policy, also ensuring those responsible for communicating information are trained