Gender pay gap rules in detail

    Under the Pay Transparency Act, employers with over 500 employees must produce a management report in accordance with Sections 264 and 289 of the German Commercial Code (HGB) on equality and equal pay, in which they describe:

    • the measures they are taking to promote equality between women and men and the effect of these, and
    • the measures they are taking to establish equal pay for women and men.

    Employers that are not implementing measures must state their reasons in the report.

    The report is published in the Federal Gazette. Employers should also regularly review their pay rules under the Pay Transparency Act, but this is not a legal obligation. 

    There is also a general right for individual employees to ask for information about on the pay of other comparable employees if the employer has more than 200 employees at the establishment.

    There are no civil or criminal penalties for breaches of the reporting rules. 

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    Author: Kliemt.HR Lawyers

    Date: January 2020