How Do You Prepare Workers’ Representation under the EU Pay Transparency Directive?

The EU Pay Transparency Directive, set to transport to national laws in June 2026, introduces a significant role for "workers' representatives" in member states. Unlike other pay transparency laws that primarily focus on publishing pay data, this directive also mandates involving workers' representatives if the pay gap exceeds 5% by category. 

In Tom Haye’s new commentary, Pay Transparency Directive and “Workers’ Representatives”, he discusses the importance of proactive measures to prepare for the directive's impact.  

The million-dollar question: But what happens if I do not have “workers’ representatives” in place?

If a company does not already have "workers' representatives," the directive suggests that such representatives should be appointed by the workers themselves for the purpose of joint pay assessments. 

In Western Europe, systems for employee representation are well established. However, in Central and Eastern Europe, and in countries like Ireland, lacking such structures poses challenges.

Hayes emphasizes the potential creation of new representative structures, such as "Pay Transparency Forums," to address this requirement proactively. By setting up these forums, organizations can prepare representatives to understand and manage pay transparency issues effectively.

The directive's requirement could spur the establishment of new workplace representative bodies, although the practical implementation remains uncertain as we are still waiting for countries to implement specific requirements.