The EU Pay Transparency Directive makes equal pay systematically verifiable for the first time. Austria must transpose this directive into national law by June 7, 2026, meaning companies will face changes they need to be aware of. The ARS Academy has designed a seminar that examines both the HR and labor law aspects and highlights the resulting opportunities. Martina Ernst, FairEqual Pay expert, and Karolin Andréewitch-Wallner, labor law expert at Taylor Wessing Austria, will show participants how to use transparency as a management tool and operate in a legally compliant manner.
EU Directive 2023/970 obliges companies to be more transparent in their remuneration by June 2026. This is not just a legal requirement, but a strategic opportunity for managers and companies.
Transparency builds trust
Martina Ernst, an expert in fair compensation and HR management, sees the three greatest opportunities for managers in employee retention, cost control and planning, and the general competitive advantage gained through transparency. "Transparent criteria and processes—including in compensation—increase employee trust, reduce costs associated with unwanted turnover, and strengthen everyone's engagement, ultimately leading to increased productivity. Clear compensation processes prevent uncontrolled cost increases and create planning certainty. Managers who act in accordance with guidelines can provide comprehensible justifications for salary decisions and minimize budget risks," says Ernst.
The implementation of the directive thus creates a new level of salary clarity, which brings objectivity to both sides during the recruitment process. In general, this transparency fosters trust, and this trust pays off. "Transparent compensation positions companies as attractive employers. This strengthens the employer brand and secures competitive advantages – especially in times of skills shortages," Ernst continued.
Pitfalls in gender pay gap reporting
There are several challenges to consider when reporting on gender pay gaps. Employment law expert Karolin Andréewitch-Wallner identifies these challenges, among others, in reporting on gender pay gaps.
„The EU Pay Transparency Directive presents companies with several challenges regarding reporting. The complex requirements for calculating any potential pay gap can easily lead to misleading results, and even an average gender pay gap of five percent triggers additional obligations. At the same time, the detailed publication requirements entail data protection and reputational risks. Therefore, it is more important than ever for companies to carefully prepare their data, clearly document their methodology, and communicate the results transparently,“ said Andréewitch-Wallner.
The path to correct implementation
By June 2026, companies must not only create transparency but also implement fair and non-discriminatory pay systems. To support this implementation, Ms. Ernst and Ms. Andréewitch-Wallner are working with the participants of the seminar „Implementing the EU Pay Transparency Directive“The necessary strategies for this. „By June 2026, companies must not only create transparency but also ensure equality in communication. The seminar combines legal requirements with leadership know-how – for fair compensation, strong employee retention, and a convincing employer brand,“ said Ernst.
„Confront the current situation in your company now and evaluate the potential need for action in order to avoid any legal consequences and sanctions for non-compliance,“ adds Andréewitch-Wallner.
More information and registration for the seminar at: https://ars.at/seminar/333000
About the ARS Academy The ARS Academy is Austria's largest private provider of professional seminars and has locations in all federal states. Around 800 selected top experts from business, practice, and law share their knowledge in approximately 1,200 different events with around 18,500 participants annually. Whether it's the latest legal changes, the newest trends, or fundamental knowledge for career advancement – with 15 specialist areas, the ARS Academy offers a broad spectrum of seminar content and industry topics, thus covering every professional development need. Seminars can be attended in person and often also as online seminars in a virtual classroom. Upon request, training courses can also be booked as in-house seminars.
