Directive (EU) 2023/970's Role in Strengthening Italian Legislator's 'Carrot-and-Stick'Transparency Approach to Gender Equality

Summary

The research paper by M. Marotta, published in 2026, analyzes how Directive (EU) 2023/970, commonly known as the Pay Transparency Directive, is set to bolster Italy's existing "carrot-and-stick" framework for achieving gender equality in the workplace. Italy's current legislative foundation, primarily Law No. 162/2021, already emphasizes transparency as a regulatory strategy. This national law employs a two-pronged approach: the "stick" involves mandatory biennial reporting on gender pay differences for companies with over 50 employees, alongside sanctions for non-compliance, while the "carrot" provides incentives such as social security exemptions for firms that attain a Gender Equality Certification. The paper argues that the impending transposition of the EU Directive will critically recalibrate and deepen this established national strategy. The paper's methodology involves a legal and comparative analysis, evaluating the specific provisions of the EU Directive against the backdrop of Italy's existing legislative landscape, particularly Law No. 162/2021. Marotta identifies key innovations within Directive (EU) 2023/970 that are poised to strengthen the Italian framework. The findings indicate that the Directive will significantly enhance workers' direct access to gender pay gap information, surpassing the current system where employees often rely solely on union representatives. Furthermore, it is expected to expand the monitoring and advocacy role of trade unions and streamline access to judicial proceedings for victims of pay discrimination, thereby addressing long-standing procedural and financial barriers. The Directive's robust requirements for transparency in remuneration—including the disclosure of salary ranges in job advertisements and mandatory gender pay gap reporting for companies—are anticipated to elevate transparency from a mere disclosure obligation into an active mechanism for accountability. The implications of this directive for Italian labor law and corporate practices are substantial. The paper suggests that the effective implementation of Directive (EU) 2023/970 will not only contribute to closing the gender pay gap but also exert broader influences on corporate organization and the role of collective actors in enforcing equality rules. By empowering workers with more direct information and strengthening enforcement mechanisms, the Directive aims to cultivate a culture of substantive gender equality, compelling employers to proactively address and rectify pay disparities. This evolution is anticipated to drive Italian companies towards greater accountability and encourage a more genuine commitment to gender equality, ensuring national efforts align more closely with broader European Union objectives.