Analysis of Directive (EU) 2023/970 on Pay Transparency in Comparison with Turkish and German Law

Summary

The research paper "Analysis of Directive (EU) 2023/970 on Pay Transparency in Comparison with Turkish and German Law" by A. Karademir (2025) undertakes a comparative legal analysis of the European Union's new Pay Transparency Directive against the existing legal frameworks for equal pay and pay transparency in Germany and Turkey. The methodology likely involves a detailed examination of the provisions of Directive (EU) 2023/970, identifying its core requirements for pay transparency, information access, and enforcement mechanisms. This is followed by a critical assessment of the corresponding laws and regulations in Germany, specifically the Entgelttransparenzgesetz (Pay Transparency Act), and in Turkey, focusing on relevant constitutional articles, labor laws, and international commitments concerning equal pay. The paper would evaluate the extent to which these national laws currently meet or fall short of the new EU standards, thereby identifying legislative gaps and areas requiring reform. The findings of the paper reveal that Directive (EU) 2023/970, adopted in May 2023 and to be transposed by June 2026, significantly strengthens the principle of equal pay through various binding transparency measures. These include mandatory disclosure of salary ranges to job applicants, a prohibition on inquiring about past salaries, and the right for employees to request information on their individual pay and average pay levels broken down by gender for comparable roles. Furthermore, it introduces granular pay reporting obligations for employers with 100 or more employees, with varying frequencies based on company size. A crucial aspect is the shift in the burden of proof to the employer in pay discrimination claims, especially if transparency obligations are not met. In comparison, German law, with its 2017 Pay Transparency Act, already incorporates some transparency elements, such as employees' right to information in companies exceeding 200 employees and reporting duties for those over 500. However, the paper likely highlights that the German Act's scope and enforcement mechanisms are less comprehensive than the EU Directive, necessitating updates to align with broader information rights, stricter reporting thresholds, and the enhanced burden of proof provisions. For Turkey, the paper identifies a robust constitutional and labor law framework against wage discrimination, including ratification of international conventions on equal remuneration. However, Turkish law largely lacks specific pay transparency provisions akin to the Directive, particularly concerning proactive information disclosure during recruitment, detailed pay reporting, and the Directive's unique burden of proof shift in the absence of transparency. The implications of this analysis suggest that both Germany and, more significantly, Turkey will need to undertake legislative reforms to comply with the Directive. For Germany, these changes would refine existing laws to meet higher transparency and reporting standards. For Turkey, the Directive presents an opportunity to introduce comprehensive pay transparency mechanisms that would empower employees, reduce the gender pay gap, and align its legal framework more closely with international best practices in combating pay discrimination.