Implementation of the Remuneration Transparency Directive in the Czech Republic

Posted by: 12. 4. 2026
Update: 17/5/2026

Equality, or rather inequality in remuneration, especially between men and women for the same work or work of equal value, has been a frequent topic and the subject of numerous court cases in the past. However, this should soon change. European Union Remuneration Transparency Directive (hereinafter "guideline"), which The Czech Republic must implement it into national law by 7 June 2026, is intended to strengthen the practical enforceability of the principle of equal pay.

Proposed amendment to the Labor Code and related legal regulations concretizes this goal and introduces a number of institutes that are intended to eliminate the current shortcomings.

Evaluation of the current arrangement

Current Czech legislation is relatively complex from the point of view of substantive law. Labor Code is already anchoring the principle of "equal pay for equal work or work of equal value" and defines the basic criteria for comparability of work. The problem with the current legislation therefore does not lie in the absence of a legal norm, but in its practical application.

It is burdened primarily in the long term lack of transparency and difficult evidentiary situation for employeesAn employee who believes they are being paid unequally typically does not have access to information about the remuneration of other employees or to the criteria by which the employer sets wages. The burden of proof lies mainly with him., which means that even potentially legitimate claims are difficult to prove.

Jurisprudence

This problem is also reflected in case law, for example in disputes concerning Czech Post. In these cases, employees objected to unequal remuneration across regions of the Czech Republic, with courts repeatedly emphasizing that differences in remuneration are permissible only if they are based on objective, transparent and consistently applied criteria. This made the disputes difficult to prove, making it difficult to determine whether work was of equal value and whether the differences were truly justified.

Proposal for a new arrangement

The proposed implementation of the directive responds to these shortcomings primarily through increasing transparency and formalizing remuneration rules.

Transparency in the recruitment phase

The aim of the new regulation is intervene already in the hiring phase. According to the new legislation, the employer should be obliged to demonstrably inform the potential employee about the minimum amount of remunerationwhich he would be entitled to as a job applicant in the case of a given job position, no later than before starting negotiations on concluding an employment contractAt the same time, employers should be It is forbidden to request information about the applicant's salary. or salarywhich he receives from his current or former employment.

This should reduce information asymmetry between the employer and the applicant and enhance the predictability of remuneration.

Remuneration system

Another innovation should be the introduction of a mandatory remuneration system. According to the draft new legislation, the employer should be obliged to create a structured system that would include the method of rewarding employees, individual components of remuneration and their grading.

This system should then include the division of work into groups according to their value, based primarily on the complexity, responsibility and arduousness of the work, with the employer being obliged to establish this system. internal regulations or collective agreement.

This should formalize rules that have often been unwritten until now, and create a framework that can also be used in the event of a judicial review.

The employer's obligation to provide information to employees

Employees should also be granted other rights in the area of information. The employer should be obliged, upon written request from the employee, to provide the employee, within 2 months from the date of its receipt, with: information on the amount of his remuneration for work and its average amount in the relevant group of jobs in which the employee performed work in the previous calendar year, broken down by genderThe request in question should also be possible through a trade union, works council or the public defender.

At the same time, the employer should be obliged to inform all employees at least once per calendar year about their above-mentioned rights, in a manner that is customary for them and accessible to all employees.

Reporting and monitoring of pay gaps

The amendment should also introduce a system for regular monitoring of gender pay gapsEmployers to whom this obligation should apply should prepare and publish reports on differences in remuneration according to job typology.

If this report reveals a difference of at least 5% that is not objectively justified and is not corrected within the specified period, the employer would be obliged to carry out the so-called remuneration assessmentThis assessment should include, in particular, an analysis of the representation of women and men, a comparison of their remuneration, identification of differences and their causes and a proposal for specific corrective measures.

The employer should then implement the above-mentioned corrective measures and eliminate unjustified differences within the specified deadlines. According to the draft amendment, the entire process should be discussed with employee representatives and subsequently published in an appropriate manner.

Procedural impacts and the role of the Ombudsman

The amendment should also strengthen the procedural position of employees. In the event of a breach of the established obligations and the initiation of a judicial review, such proceedings should result in shifting the burden of proof to the employer, who would have to prove that there was no breach of the principle of equal treatment.

The approval of the amendment should also lead to strengthening the role of the Ombudsman, who could provide information, evaluate the employer's actions and, in some cases, represent the employee in legal proceedings.

Efficiency and gradual implementation

The general effectiveness of the amendment to the Labor Code is planned as of January 1, 2027, while in some areas, notably in the area of pay gap reporting, the effectiveness will be determined later and introduced gradually according to the size of the employer.

Summary

The proposed amendment to the Labor Code should not bring about a revolution in the principle of equal pay itself, which has long been enshrined in Czech law, but should strengthen its practical enforceability.

In particular, the amendment should introduce an obligation to structure the remuneration system transparently, to make relevant information available to employees and to systematically monitor the gender pay gap. These elements should be complemented by appropriate redress mechanisms and procedural tools that should facilitate employees' ability to assert their claims in court.

The result should be a shift from a difficult-to-enforce law to a model in which potential differences in remuneration transparent, objectively justifiable and factually reviewable.

In conclusion, it should be emphasized that the final form of the legislation will depend on the further course of the legislative process and decisions of the legislator. It can therefore be expected that some institutions or the scope of obligations may be modified during its course, while The final impacts of the amendment will only be fully assessed after its adoption..

Source: epravo.cz

What does the above amendment to the Labor Code mean for you and your business? Do you need advice on amending internal regulations, reporting, representing an employee in a dispute or solving any other problem related to labor law? Contact us, we will help you with everything.