In this first blog post for Fairness & Friends, I’ll be focusing on the shifting paradigm of employer responsibility with the upcoming implementation of the Pay Transparency Directive, set to take effect by the summer of 2026.
This Directive is fascinating and complex, and I’ll be exploring it over a series of posts (please note that these posts are written from a Finnish perspective).
As I see it, one of the key goals of the Directive is to redefine employer responsibility in a way that could disrupt long-standing workplace practices and mindsets. The following quote captures the Directive’s objective:
“While the burden of proof in pay discrimination cases has traditionally fallen on the employee, it will now be up to the employer to prove that they have not violated EU rules on equal pay and pay transparency.” (Council of the EU, tiedote, 24.4.2023).
In essence, the Directive shifts responsibility from the individual to the employer. Employers will now be required to demonstrate compliance in pay discrimination cases, with the burden of proof falling on them, not the employee.
Even without any act of discrimination, employers must now be proactive in managing their responsibilities. Let me illustrate this shift with a practical example that highlights the potential impact of this change:
The case of recruitment and salary ranges
As is widely discussed, the Directive extends this new understanding of responsibility to recruitment. Employers will need to disclose salary ranges in job postings (or, at the very latest, when a candidate is interviewed). Public debate on salary ranges has been divided; for some, this is seen as a challenging issue, while for others, it’s simply a given.
In Finland, one possible explanation for this divide may be our highly individualistic culture, where we tend to assume that determining fair pay is the individual’s responsibility. In job searches, this mindset often means that applicants are expected to research a company’s ability to pay and negotiate accordingly. In these cases, the practice has traditionally been on the job seeker to determine their fair market value within that specific company. Many have been taught that success in this task relies on personal networks, and individual assertiveness.
There’s nothing inherently wrong with this approach, which emphasizes taking initiative. However, it overlooks the employer’s responsibility in setting fair pay and ensuring transparency—areas the Directive now addresses. For some organizations, this shift in mindset may require a significant overhaul of their recruitment processes. It’s no longer acceptable to justify pay gaps by saying an employee didn’t negotiate well (and it wasn’t before either), but the Directive is pushing for faster change.
Organizations will need to start rethinking their practices to ensure they can justify any pay gaps in a way that aligns with the Directive’s requirements.
As I write this, summer 2026 may seem far off, but as we all know, time flies. Now is the perfect time to start familiarizing your organization with the Pay Transparency Directive and assess what changes in policy may be needed. There’s still time to create a plan, set a timeline for implementation, and get ahead of the changes.
At Fairness & Friends, we’re here to help. We specialize in working with organizations to create fairer, more equitable practices—with a human and positive touch, of course.
