Legal Alerts
Directive (EU) 2023/970 on strengthening the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms represents a new regulatory framework requiring greater transparency from employers in determining and explaining pay. It applies to employers in the public and private sector and to workers who have an employment contract or are in an employment relationship in accordance with national law, collective agreements and the practices of Member States.In practice, the Directive requires employers to be able to explain how they determine pay, why pay differences exist and whether those differences are based on objective, measurable and gender-neutral criteria. Member States were required to implement it by 7 June 2026, but the Republic of Croatia has not yet done so. Based on announcements made to date, the Directive is expected to be transposed into Croatian legislation through amendments to the Labour Act only towards the end of 2026.