Equal Pay Act: Employer Obligations

The National Council of the Slovak Republic has passed a new Act aimed at ensuring equal pay for men and women for equal work or work of equal value, introducing, in connection therewith, a number of obligations for employers.

The principal objective of the Act is set forth in the Explanatory Memorandum, according to which: “The primary objective of the draft bill is to transpose into the legal order of the Slovak Republic Directive (EU) 2023/970 of the European Parliament and of the Council…” At the same time, the Act also aims at practical changes in remuneration: “The objective of the draft bill is to introduce a pay transparency system that will enable effective monitoring and assessment of pay gaps between men and women…”

On this basis, it can be stated that the aim of the Act is not merely the formal implementation of European legislation, but in particular the improvement of salary transparency, the strengthening of employees’ rights, and the elimination of unjustified pay disparities.

At the outset, the Act stipulates that it regulates equal pay for men and women for equal work or work of equal value in employment and similar relationships. Concurrently, it emphasizes the fundamental principle that men and women have the right to equal pay and that a violation of this right shall be deemed a breach of the principle of equal treatment.

The core of the Act is established in its introductory provisions. Pursuant to Section 1 of the Act:

and concurrently:

It follows from the above that the Act establishes a clear principle of equal pay. This Section is elaborated upon by the Explanatory Memorandum, according to which the Act covers a broad spectrum of employment relationships – not only standard employment relationships under the Labour Code, but also civil service relationships. The objective is to ensure that the rules of equal pay are applied in all areas where discrimination may occur.

The Explanatory Memorandum further emphasizes that pay disparities do not automatically constitute a breach of the Act. They are deemed permissible provided that they are based on objective criteria, such as:

The introductory provisions are followed by Section 2 of the Act, which defines basic terms. Pursuant to this provision:

“(1) Remuneration shall mean basic wage, minimum wage, or remuneration based on agreements for work performed outside an employment relationship, tariff salary of a civil servant, functional salary of members of the armed forces, as well as other monetary or non-monetary benefits provided by the employer…”

The Act thus clearly broadens the concept of remuneration beyond mere wages. As supplemented by the specific part of the Explanatory Memorandum: “The term ‘remuneration’ represents one of the most important concepts of the entire Act. The right to equal pay should be observed with regard to remuneration, salary, or any other monetary or in-kind benefits that employed persons receive directly or indirectly from their employer in connection with their employment.” Remuneration should comprise not only the basic salary, but also all supplementary and variable components of pay.

Remuneration includes:

An important component of the Act is also the obligation of employers to establish a transparent remuneration system. Pursuant to Section 3 of the Act:

(1) The employer shall establish a remuneration system ensuring compliance with the principle of equal pay. This system shall enable an assessment of whether employees perform equal work or work of equal value, whereby the value of the work shall be determined on the basis of objective criteria that:

a) are not directly or indirectly based on sex,

b) take into account, in particular, the complexity of the work, the level of responsibility, arduousness, working conditions and other relevant factors including soft skills, in particular social and communication skills,

c) are applied objectively and in a non-discriminatory manner.

The Act requires that these criteria be agreed upon with employee representatives, if any operate at the employer.

This provision is elaborated upon in more detail by the Explanatory Memorandum, according to which it constitutes one of the most important obligations of employers. It emphasizes that pay structures represent the foundation for fair and non-discriminatory remuneration and are intended to ensure that unjustified disparities do not arise between employees performing equal or equivalent work. The Explanatory Memorandum further explains that objective criteria, such as skills, effort, responsibility, and working conditions, are to be used when assessing work. These factors represent the minimum standard that the employer must take into account, while their specific weighting may vary depending on the nature of the job position. It is also emphasized that “the pay structure must be transparent and based on facts, rather than prejudices or stereotypes.” The employer may select its own job evaluation methodology; however, it must ensure that it is objective, comparable, and in compliance with the principle of equal pay.

An important element is also the involvement of employee representatives, who participate in the creation and assessment of the remuneration criteria. The objective is to ensure that the remuneration rules are not only transparent, but also accepted by the employees. According to the Explanatory Memorandum, “An agreement with employee representatives may also be concluded within the framework of collective bargaining.”

According to the transitional provisions of the Act, “An employer established prior to 7 June 2026 shall fulfill the obligation under Section 3 by 31 July 2026.“

Pursuant to Section 4 of the Equal Pay for Men and Women Act: “(1) The employer shall ensure that published job vacancies and job titles or job positions are not based on a specific sex, the recruitment process is conducted in a non-discriminatory manner, and the exercise of the right to equal pay is not impaired”

and at the same time:

“(2) A natural person applying for employment shall have the right to receive information from the employer regarding: a) the initial remuneration or the pay range for the initial remuneration for the position applied for, determined on the basis of the criteria under Section 3(1), b) the relevant provisions of the collective agreement, if remuneration is also governed by a collective agreement.” The Act thus introduces a transparency obligation already at the recruitment stage. Applicants have the right to know what remuneration they can expect prior to entering into an employment relationship.

Furthermore, the Act lays down an important obligation: “(3) The employer shall provide the information referred to in paragraph 2 in such a manner and at such time as to ensure informed and transparent negotiations on remuneration, prior to the job interview or prior to entering into a contract with the employee. The obligation under the first sentence shall be deemed fulfilled if the information referred to in paragraph 2 is contained in the published job vacancy.”

This prevents the perpetuation of pay disparities between individual jobs. This provision is further elaborated upon in the Explanatory Memorandum, according to which the goal is to eliminate the so-called information asymmetry between the employer and the job applicant. If the applicant is unaware of the pay conditions, their bargaining position is weaker, which can lead to a widening of pay disparities. The Explanatory Memorandum also emphasizes that transparency must be ensured as early as the publication of the job vacancy. Information on remuneration must be provided in a timely manner, i.e., prior to the job interview or entering into an employment contract, so that the applicant can make an informed decision. Furthermore, attention is drawn to the need for non-discriminatory drafting of job offers. Job titles and conditions of recruitment must not favor or disadvantage a specific sex, thereby aiming to prevent stereotypes and foster equal opportunities in the labor market.

An employer shall not require information from a natural person applying for employment with that employer regarding their remuneration with their current employer or previous employers.

Pursuant to Section 5 of the Equal Pay for Men and Women Act: “(1) The employer shall make available to employees the criteria on the basis of which:”

The Act thus introduces a transparency obligation regarding how wages and changes thereto are determined.

An employer may not determine remuneration based on subjective or discriminatory grounds, such as sex. The Explanatory Memorandum to this provision further clarifies that the objective is to establish a transparent remuneration system that is understandable and accessible to employees. The criteria must be accessible within the organization, for example on an intranet or another accessible location, so that every employee knows the basis on which their remuneration is determined. Furthermore, the Explanatory Memorandum states that the criteria must be based on the actual requirements of the job position and job performance, rather than on the personal characteristics of the employee. Their purpose is to ensure fair remuneration and prevent discrimination.

An employee may request written information from the employer upon request.

An employer may require an employee to maintain confidentiality regarding the average level of remuneration, except in cases where the employee exercises their right to equal pay for equal work or work of equal value. The law also provides that any provisions in a contract between an employer and an employee whereby the employee undertakes to maintain confidentiality regarding their remuneration, or which otherwise prevent the employee from disclosing their remuneration to another person, shall be void.

The Explanatory Memorandum to this provision further clarifies that the objective is to enable employees to objectively assess their position regarding remuneration. The right to information encompasses not only data concerning an employee’s own remuneration, but also a comparison with the average level of remuneration of employees in the same category, taking into account the breakdown by sex. The deadline by which the employer must provide the information is two months from the date of submission of the application.

The Explanatory Memorandum also highlights that employees are entitled to request additional clarification regarding the provided data, enabling them to gain a clearer understanding of the remuneration system.

The Equal Pay Act represents a significant step toward a fairer working environment. It introduces new transparency rules, strengthens employee rights, and places an imperative on employers to ensure equal remuneration without discrimination.

Furthermore, the statutory provisions establish an obligation to ensure the accessibility of information for persons with disabilities, requiring that such information be provided in a suitably adapted format that allows for its full comprehension and exercise (§ 7).

Furthermore, an obligation is introduced for employers to regularly prepare and provide reporting on pay transparency between men and women, thereby enhancing remuneration transparency and establishing a mechanism for the systematic monitoring of gender pay gaps (§ 8).

This obligation applies to employers who:

If employee representatives are active at the employer, the employer shall provide the remuneration report after consulting with them. They shall also have the right of access to the methodologies applied by the employer in preparing the remuneration report.

The remuneration report should contain the following information:

An employer may publish the remuneration report on its website.

The statutory provisions further introduce a mechanism for a joint pay assessment, which serves to identify and eliminate unjustified pay disparities. It sets out the conditions for its application as well as its substantive requirements, with the aim of ensuring equal remuneration for work of equal value (§ 9). The above-mentioned employers (with more than 100 employees) must conduct a joint pay assessment in cooperation with employee representatives in the following cases:

What the joint pay assessment includes is governed by Section 9(3) of the Act.

Furthermore, it regulates the protection of personal data processed in connection with the application of the principle of equal pay, strictly delimiting the purpose of their use and the scope of entities entitled to access them (§ 10).

The statutory regulation further establishes the right to compensation for loss resulting from a breach of the right to equal pay, defining the scope of such compensation to include both material and non-material damage, while also governing the limitation periods for enforcing claims (§ 11).

If a natural person considers that they have suffered harm as a result of a breach of the right to equal pay, they may seek financial compensation within 3 years. Such compensation may consist of, for example, compensation for unpaid remuneration, lost opportunities, compensation for non-material damage, etc.

The burden of proof rests on the employer, who is required to prove in the dispute that discrimination did not occur. Finally, the procedural position of the employee is strengthened by introducing rules on the shift of the burden of proof to the employer in cases of non-compliance with pay transparency obligations, thereby enhancing the effectiveness of protection against pay discrimination (§ 12).

If an employer fails to comply with the obligation under Section 8, Subsections 1 to 3 (i.e. the provision of remuneration reports), the Ministry of Labour shall set a deadline for additional compliance with this obligation, which shall not be shorter than 15 days. If the employer fails to comply with the obligation under Section 8, Subsections 1 to 3 even within the deadline set pursuant to the first sentence, the Ministry of Labour shall impose a fine ranging from EUR 4,000 to EUR 8,000.

The new Act shall enter into force on 7 June 2026.