{"id":576311,"date":"2023-05-27T11:30:15","date_gmt":"2023-05-27T08:30:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/"},"modified":"2023-05-27T11:30:15","modified_gmt":"2023-05-27T08:30:15","slug":"want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/","title":{"rendered":"#Want do the EU&#8217;s new gender pay gap rules mean for your startup?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d821b5b15c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d821b5b15c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/#1_No_more_pay_discrimination\" >1. No more pay discrimination<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/#2_Full-on_pay_transparency\" >2. Full-on pay transparency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/#3_More_justice_for_the_employees\" >3. More justice for the employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/#4_Report_report_report\" >4. Report, report, report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/#5_Beware_of_the_penalties\" >5. Beware of the penalties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-your-startup\/#What_are_the_next_steps\" >What are the next steps?<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/img-cdn.tnwcdn.com\/image?fit=796%2C417&amp;url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2023%2F05%2FUntitled-design-3-15.jpg&amp;signature=347f9dab26571a0da9a1d7d43144713c\" \/><\/p>\n<div id=\"article-main-content\">\n                            It\u2019s been 66 years since the EU first introduced the principle of equal pay for male and female employees conducting work of equal value. Yet, the gender pay gap stubbornly persists in the bloc. Women earn, on average, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20230327IPR78545\/gender-pay-gap-parliament-adopts-new-rules-on-binding-pay-transparency-measures\">around 13%<\/a> less than men, with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/eurostat\/statistics-explained\/index.php?title=Gender_pay_gap_statistics#Gender_pay_gap_levels_vary_significantly_across_EU\">significant variations among member states<\/a>.<\/p>\n<p>To narrow this gap, the European Parliament and Council recently <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20230327IPR78545\/gender-pay-gap-parliament-adopts-new-rules-on-binding-pay-transparency-measures\">a set of new rules<\/a> that establish binding pay transparency measures. For the first time in the union\u2019s history, this legislation also tackles intersectional discrimination (on the combined basis of ethnicity, race, religion, etc.) and addresses the rights of non-binary individuals.<\/p>\n<p>\u201cThis legislation makes it crystal clear that we do not accept any kind of gender pay discrimination in the EU,\u201d said Kira Marie Peter-Hansen, rapporteur of the Employment and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Affairs Committee.<\/p>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/doceo\/document\/TA-9-2023-0091_EN.html#def_2_11\">directive<\/a> will apply to all workers with a legal employment contract, collective agreement, and practice in force, as well as to all employers in the public and private sector.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/fast.wistia.net\/embed\/iframe\/3yishpx6ry?videoFoam=true&amp;autoPlay=true\" title=\"\" allowtransparency=\"true\" frameborder=\"0\" scrolling=\"no\" class=\"wistia_embed\" name=\"wistia_embed\" allowfullscreen=\"\" msallowfullscreen=\"\" width=\"100%\" height=\"100%\"><\/iframe><\/p>\n<p>For some companies, this landmark law might simply (and hopefully) mean the normalisation of existing practices; for others, it might require a systematic change. But what exactly does it entail?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_No_more_pay_discrimination\"><\/span>1. No more pay discrimination<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Employers must ensure that their pay structures don\u2019t reflect gender-based differences between employees who perform the same work or work of equal value. This concerns not only salaries, but also any type of benefit, such as bonuses and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> expenses.<\/p>\n<p>To help companies (and especially startups and SMEs), member states should provide employers with training and tools to assess the value of work based on four objective criteria: skills, efforts, responsibilities, and working conditions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Full-on_pay_transparency\"><\/span>2. Full-on pay transparency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The new rules require companies to inform job seekers about the starting salary or pay range of open positions, either in the job description or ahead of the interview. Employers, however, won\u2019t have the right to ask about the candidates\u2019 pay history.<\/p>\n<p>Workers will also be entitled to information about their individual and the average pay levels \u2014 broken down by sex \u2014 for work of equal value. In addition, they\u2019ll have access to the criteria used to determine pay and career progression, which must be objective and gender-neutral.<\/p>\n<p>Member states can exempt employers with fewer than 50 employees from this obligation and allow them to make these criteria available only upon request. But in any case, they should provide ready-made templates to reduce administration hurdles for micro-enterprises and SMEs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_More_justice_for_the_employees\"><\/span>3. More justice for the employees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The burden of proof for pay-related disputes will no longer fall on the employee.<\/p>\n<p>\u201cIt is particularly important that [this] has shifted from the employee to the employer when a charge of gender pay discrimination is brought,\u201d Yoko Spirig, co-founder and CEO of Swiss startup <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ledgy.com\/\">Ledgy<\/a>, told TNW.<\/p>\n<p>\u201cCompanies now have to prove that there is no discrimination when challenged, rather than the employee having to prove the presence of discriminatory practices. This step is welcome and sends a clear signal to companies to get their pay data and processes in order now.\u201d<\/p>\n<p>Employees who\u2019ve suffered gender pay discrimination can also claim and receive compensation, including full recovery of back pay, related bonuses, and payments in kind.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Report_report_report\"><\/span>4. Report, report, report<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the directive, companies with more than 250 employees will have to report annually on their gender pay gap. This falls to every three years for a headcount between 150 and 249, and to every eight years for an employee number between 100 and and 149.<\/p>\n<p>Member states can exempt companies with fewer than 100 workers, or choose to oblige them as well.<\/p>\n<p>If the reporting reveals a gap of more than 5% that can\u2019t be justified by objective, gender-neutral criteria, then they\u2019ll need to do a joint pay assessment in cooperation with the employees\u2019 representatives.<\/p>\n<p>The assessment\u2019s aim is to identify problems and implement solutions that will eliminate gender pay discrimination.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Beware_of_the_penalties\"><\/span>5. Beware of the penalties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Employers who break the rules will face \u201ceffective, proportionate, and dissuasive penalties,\u201d such as fines and even revocation of public benefits.<\/p>\n<p>\u201cI particularly welcome the proposal to penalise firms which fail to act on their gender pay gap as it\u2019s imperative that companies stop resting on their laurels \u2014 complacency will get us nowhere,\u201d Jenny Keisu, CEO of Swedish eboat maker <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/xshore.com\/\">X Shore<\/a>, told TNW.<\/p>\n<p>Keisu emphasised that all companies should be tracking the gender pay gap \u201cas any other important KPI\u201d even more regularly than the legislation proposes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_next_steps\"><\/span>What are the next steps?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The rules will come into effect 20 days after their publication in the EU\u2019s Official Journal \u2014 which is still pending. They\u2019ll apply to all employers in the union, even though smaller ones (micro enterprises, startups, and SMEs) will initially have fewer obligations and more help from member states.<\/p>\n<p>As this is a directive, EU countries get some freedom around how they\u2019ll choose to apply the rules and they have three years to put them in place.<\/p>\n<p>\u201cIt\u2019s heartening that the European Parliament is taking a stand and cementing that change needs to happen sooner rather than later,\u201d said Marta Sis\u00ed Jim\u00e9nez, Head of HR at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.freepikcompany.com\/\">Freepik Company<\/a>, a Malaga-based scaleup.<\/p>\n<p>\u201c[Especially] for Europe\u2019s proliferating startups looking to expand, these new rules establish clear guidelines around an issue that previously lacked clarity,\u201d she told TNW.<\/p>\n<p>But this historic \u2014 and imperative \u2014 change might not come without challenges. Jim\u00e9nez noted the potential resistance from founders who are already navigating a difficult landscape, with shrinking investment and increasing regulations.<\/p>\n<p>David Perez, VP of Stakeholder Relations at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cabify.com\/en\/\">Cabify<\/a>, pointed to another possible challenge: the validity of the required data.<\/p>\n<p>\u201cIt must be taken into account that in the analysis of the gender gap, many factors can distort the data, such as the number of women and men in one department versus another,\u201d Perez told TNW. \u201cThus, we believe that it is vitally important to perform an ad hoc analysis of each job, so that a person is not sought for their gender but for what they can contribute to the job.\u201d<\/p>\n<p>But regardless of any challenges, the benefits of securing equal pay are large and far- reaching: from establishing equality and social justice, to bolstering business performance and strengthening the economy.<\/p>\n<p>From the point of view of the startup ecosystem in Europe, the new rules also promote a level playing field.<\/p>\n<p>\u201cThis regulation will begin to shape a labour market in which large companies and SMEs will compete on the same terms for talent, with the same rules,\u201d Perez noted. \u201cA labour market in which this data will begin to be reported in a unified and common way among all companies.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/want-do-the-eus-new-gender-pay-gap-rules-mean-for-startups\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s been 66 years since the EU first introduced the principle of equal pay for male and female employees conducting work of equal value. Yet, the gender pay gap stubbornly persists in the bloc. Women earn, on average, around 13% less than men, with significant variations among member states. To narrow this gap, the European&#8230;<\/p>\n","protected":false},"author":1,"featured_media":576312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw-blurple?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2023\/05\/Untitled-design-3-15.jpg&signature=a2e9c3fa56be821f4b5fa4f0d16600d4","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-576311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/576311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=576311"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/576311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/576312"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=576311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=576311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=576311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}