Labour law and HR Amendment to the Labour Code – wage transparency on the horizon

The Pay Transparency Directive: what is its purpose?

The Pay Transparency Directive aims to combat pay discrimination and unequal treatment of women and men in employment. Its introduction is also intended to reduce the gender pay gap.

New obligations for employers – what do we know so far?

According to the current wording of the draft amendment to the Labour Code, employers will be required to inform job applicants about:

• salary, its initial amount or range (salary scale) based on objective, neutral criteria, in particular with regard to gender;

• relevant provisions of a collective agreement or remuneration regulations – if the employer is covered by a collective agreement or has remuneration regulations in place.

The second obligation, which involves informing job applicants about the provisions of the remuneration regulations, may prove particularly important. It should be remembered that one of the main obligations under the Pay Transparency Directive is the obligation to implement a pay structure in every company, regardless of its industry or size. Since in most cases such a structure will be part of the remuneration regulations, it is precisely the provisions of this structure that job applicants will probably have the right to access.

The draft amendment to the Labour Code also specifies how the employer should fulfil this information obligation. The information is to be provided by the employer:

• in paper or electronic form;

• in a timely manner;

• ensuring informed and transparent negotiations.

The employer shall provide information on remuneration and the relevant provisions of the remuneration regulations in:

• the job advertisement;

• before the interview, if the employer has not advertised the position or provided information on remuneration in the advertisement;

• before the employment relationship is established, if the employer has not advertised the position or provided information on remuneration in the advertisement or before the interview.

In addition, employers are required to ensure that job advertisements and job titles are gender-neutral and that the recruitment process is non-discriminatory.

Recruiters will not ask about salary

According to the draft amendment to the Labour Code, employers will no longer be able to ask job candidates about their current or previous salary. However, this only applies to employment relationships.

Penalties for employers who violate the new obligations

If the amendments to the Labour Code come into force in their currently proposed form, the State Labour Inspection will be able to impose fines of up to PLN 30,000 for failure to comply with the new obligations, i.e. in accordance with the general rules set out in the Labour Code.

Pay transparency: this is just the beginning

Although the proposed amendment to the Labour Code in the above-mentioned area may seem groundbreaking, it is still only a step towards full implementation of the Pay Transparency Directive. The provisions of the draft amendment to the Labour Code are essentially identical to those of the Pay Transparency Directive, except that they currently only apply to the recruitment process, whereas, as we know, the Pay Transparency Directive goes much further.

The time for comprehensive implementation will come, as Poland still has over a year to implement the Pay Transparency Directive. However, the draft amendments we are writing about today are a signal from the Polish legislator that changes are beginning. These changes will certainly cover the entire subject of remuneration in Polish companies – large, medium and small. Let us remember that the main obligation of every employer will be to prepare a remuneration structure.

Amendment to the Labour Code – law in the Senate

Currently, the law amending the Labour Code is in the Senate, where we can expect further amendments. At present, the provisions are expected to enter into force in the first quarter of 2026.

Summary

The amendment to the Labour Code is a step in the right direction – it breaks the taboo surrounding salary and introduces greater clarity in job advertisements. However, in practice, the new provisions may only formalise existing procedures, as candidates usually receive information about remuneration before signing an employment contract. On the other hand, the obligation to provide information about the company's remuneration regulations, the prohibition on asking about salary at previous employers and the obligation to use neutral job titles may prove to be a novelty.

Employers are already slowly incorporating these requirements into their procedures and policies, while also starting to work on their pay structures.

It is worth preparing for the upcoming changes now and consulting with labour law experts to adapt to the new recruitment processes. Feel free to contact us!

Authors: Paula Staszak-Urbańska, Karol Kopaczewski