Rights & Remedies

Pay Secrecy Clauses

Contractual provisions that prohibit employees from disclosing or discussing their wages with colleagues or external parties.

Definition

Pay secrecy clauses are contractual terms or employer policies that prevent employees from revealing or discussing their own remuneration or the remuneration of others. The EU Pay Transparency Directive explicitly prohibits employers from including such clauses in employment contracts or otherwise restricting workers from discussing their pay. This prohibition is designed to foster greater transparency and empower workers to identify potential pay discrimination by enabling open dialogue about wages.