On May 14, 2025, the American Chamber of Commerce in Germany e.V. in collaboration with AmCham Germany member Ernst & Young (EY) hosted an Expert Webinar on the Directive (EU) 2023/970 of the European Parliament and of the Council, commonly referred to as the Transparency Directive. This new legislation is set to have significant implications for all companies operating within the European Union, mandating regular reporting on pay disparities between female and male employees.
B盲rbel Kuhlmann, EY Law鈥檚 Regional Lead Partner and Jens Massmann, Germany Rewards & People Transactions Leader, covered key aspects of the Transparency Directive. After starting with an overview of the EU Pay Transparency Directive to establish a foundational understanding, they addressed the new reporting requirements for companies regarding pay gaps and the frequency of disclosures. A significant focus of the webinar was on identifying employee groups that perform equal work or work of equal value and evaluating jobs accurately.
The session also discussed data requirements for calculating the pay gaps, possible ways for identifying underlying causes for pay disparities, and hands-on and practical advice on measures to close these gaps. Furthermore, the speakers highlighted documentation requirements to ensure compliance.
The webinar concluded with a Q&A segment for participant engagement and clarification on challenges in implementing the new requirements. Attendees learned about critical reporting obligations, including the need for corrective actions if a gender pay gap of 5% or more is found, which would potentially require joint assessments with employee representatives. EY experts provided guidance on compliance risks and necessary steps to meet approaching deadlines by 2026.
This informative webinar served as a platform for businesses to prepare for the changes ahead, ensuring they are equipped to navigate the complexities of the Transparency Directive and foster a more equitable workplace.
