Introduction
The EU Pay Transparency Directive (the “Directive”) aims to enhance pay transparency for employees and candidates for employment and to improve access for redress for gender based pay-discrimination claims. Ireland has until 7 June 2026 to transpose the Directive. The Autumn 2025 Legislative Programme suggests that transposition will be by way of the Pay Transparency Bill (the “Bill”). Once implemented, Irish employers will be subject to new obligations which are designed to end pay secrecy, enforce the principle of equal pay between men and women and combat discrepancies in pay between men and women.
In our previous article in our ESG series, we focused on the right of employees to access pay information which is enshrined in the Directive, and considered what this new right will mean for employers
In this article in our ESG series, we outline the concept of Joint Pay Assessments (“JPAs”) and what you can do to prepare within your business.
What is a JPA?
As outlined in our previous article: The Pay Transparency Directive: How Can Employers Prepare?, JPAs are an extensive pay audits which will require an in-depth assessment of pay practices.
Ireland has already enacted comprehensive Gender Pay Gap (“GPG”) Reporting Legislation. However, the Directive will introduce significant additional GPG reporting requirements for employers in Ireland and across Europe. The key changes are outlined our previous article: New Law on the Way – Bringing Pay Transparency into Sharp Focus.
One of those key changes is that in scope organisations will be required to carry out JPAs where as a result of its GPG reporting obligations, it becomes apparent there is
- at least a 5% GPG in any category of workers;
- that has not been justified by objective and gender neutral factors; and
- has not been remedied within six months of the GPG report.
As referenced above, importantly where employers take measures to close the gap within six months, they may avoid the need to carry out a JPA.
What must a JPA include?
An employer will in cooperation with their worker’s representatives have to carry out detailed analysis
of categories of workers, set out measures that are to be taken to address the pay difference, and
report on the effectiveness of measures to reduce this gap.
The Directive provides that such assessment must include:
- an analysis of the proportion of female and male workers in each category of workers;
- information on average female and male workers’ pay levels and complementary or variable components for each category of workers;
- any differences in average pay levels between female and male workers in each category of workers;
- the reasons for such differences in average pay levels, on the basis of objective, gender-neutral criteria, if any, as established jointly by the workers’ representatives and the employer;
- the proportion of female and male workers who benefited from any improvement in pay following their return from maternity or paternity leave, parental leave or carers’ leave, if such improvement occurred in the relevant category of workers during the period in which the leave was taken;
- measures to address differences in pay if they are not justified on the basis of objective, gender-neutral criteria; and
- an evaluation of the effectiveness of measures from previous joint pay assessments.
What happens next?
Once the JPA has been completed, it must be shared with employees and their representatives and must be communicated to the, yet to be confirmed, monitoring body.
Employers must then remedy the unjustified differences in pay within a reasonable period of time in cooperation with the workers’ representatives and the monitoring body.
Given what appears to be a key role of workers representatives here, we await confirmation of whether the Bill will provide a mechanism for the election / appointment of representatives in circumstances where they are not already in place.
The result of the assessment must include an analysis of the existing gender-neutral job evaluation and classification systems or the establishment of such systems, to ensure that any direct or indirect pay discrimination on the grounds of sex is eliminated.
This requirement to take corrective action is crucial if employers wish to avoid potential claims, sanctions and / or penalties. With that said, the exact approach and / or methodology of JPAs remains unclear.
Impact on Employers
A lot remains unclear but it is fair to say that JPAs will have a significant effect on organisations. Importantly,
These assessments will trigger the review and revision of pay structures in organisations that show pay inequities. Employers will be required to disclose pay gaps by category of worker internally and must perform JPAs where appropriate. Thereafter, the JPA is to be made available by the employer to workers, workers’ representatives and the monitoring body.
Where the JPA reveals differences in pay that cannot be justified by objective and gender-neutral criteria, the employer is required to remedy the situation.
There is a lot of preparatory work involved to ensure your business is compliant. Therefore, it is imperative that employers begin preparation for the implementation of the Directive.
How can employers prepare?
- Categorise workers: Identify and define categories of workers within the workplace carefully. This is an essential part of the Directive and is a critical phase of any pay audit. We also recommend keeping records of all employees, job titles, salaries and where there is a GPG, a detailed record of the reason for such, and any objectively justified reasons should be noted.
Under the Directive, employees will need to be included in “work categories” of those who are performing work of equal value. There is currently no specific guidance on how this is defined but employers will be required to ensure they can break down job roles to those performing work of equal value.
- Crunch the GPG numbers for each category of worker in advance: By running the GPG data for each category of workers, you will see if a JPA will be required.
This exercise may help pinpoint disparities and indicate whether policy / practices require modification and / or suggestive of updated classification systems.
- Consider conducting a mock JPA: This can be a helpful exercise in order to seek to identify and proactively remedy any potential pay gaps or issues with pay transparency in the workplace now to ensure ease of compliance in the future.
Contact Us
Matheson’s Employment, Pensions and Benefits Group is available to guide you through the complexities of navigating the new trends and legal developments in this area.
For more information please contact Employment, Pensions and Benefits partner, Alice Duffy, or your usual contact at Matheson.