Italy: The EU Pay Transparency Directive

What is the current implementation status and timing?

The Directive has not yet been implemented in Italy. To date, Italy has only adopted Law no. 15/2024 which establishes the principles and criteria which the government must abide by in implementing the Directive. No legislation proposals have been discussed.

Which workers are in scope?

It is anticipated that national laws will align with the Directive definition of a worker requiring the existence of an employment contract or employment relationship defined by law, collective agreements, or practice in force in that Member State. It will likely include part-time, fixed-term, temporary agency workers, managers; and where criteria are met, atypical workers (e.g. zero hours, trainees, apprentices, platform workers).

Who will be worker representatives?

We are awaiting further details of implementing legislation.

Are there any proposals around the methodology and tools for assessing "equal value"?

It is not mandatory in Italy for employers to have a job evaluation system in place, although in practice many companies do have such systems. National CBAs usually provide for detailed definitions of roles and the relevant levels and minimum salary. However, the Directive may require consideration of new and additional criteria to define categories of workers of equal value.

The Department for Equal Opportunities, the National Committee for the Implementation of the Principles of Equal Treatment and Equal Opportunities between Male and Female Workers, and the Equality Advisors are responsible for promoting governance related to equal treatment and are tasked with drafting guidelines and best practices. Non-statutory guidance is available which identifies a set of best practices and gender-neutral evaluation criteria.

How is pay defined?

Currently, companies with more than 50 employees must provide a report on male and female workers, including, amongst other things, the amount of total remuneration paid which includes supplementary salary components, allowances, payments linked to performance, bonuses and any other benefits in kind or other payments that have been granted to each employee.

There is also government guidance which can help identify the pay components for this report. It is likely that legislation relating to the Directive obligations will follow suit.

How are the requirements for transparency for job applicants being implemented?

We are awaiting further details of measures to be introduced to align with the Directive.

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Currently, all recruitment processes must be conducted in a non-discriminatory manner. There is a general prohibition on unequal treatment when offering a job and handling the filling of a vacancy, employment services and entering and terminating an employment relationship; employers may not therefore discriminate on the basis of certain grounds for discrimination. Acting in violation of this legislation is prohibited and may result in unlawful conduct (damages claim).

Companies can also obtain the so-called Gender Equality Certification, which aims to attest to the policies and concrete measures adopted by employers to reduce the gender gap in relation to opportunities for growth within the company, equal pay for equal work, gender difference management policies, and maternity protection. The Gender Equality Certification can bring some benefits including contributory exemption and preferential treatment in public tenders.

How are the requirements for transparency for workers being implemented?

We are awaiting further details of measures to be introduced to align with the Directive.

It is not yet clear whether national laws implementing the Directive will exempt employers with less than 50 employees from the duty to provide their employees with information on the criteria for pay, pay levels, and pay progression. However, the existing requirement to report on male and female personnel is already optional for employers with less than 50 employees.

How are the gender pay reporting requirements being implemented?

We are awaiting further details of measures to be introduced to align with the Directive and how these sit with existing requirements. The current statutory threshold numbers and reporting deadlines are lower and shorter than those provided for by the Directive. It is likely that the existing thresholds and deadlines in the current legal requirements will be reflected in implementing the Directive.

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Article 46, Legislative Decree 198/2006 establishes an obligation for companies with more than 50 employees to draft a report every two years on male and female personnel in each profession, in relation to:
 

• hiring,
• training,
• promotion, levels, category or qualification changes and other mobility phenomena,
• intervention of the wage guarantee fund,
• dismissals, early retirements, and retirements, and
• the actual remuneration paid.

When counting workers for the purposes of the Directive's pay reporting thresholds, will only workers of a particular "legal entity" be in scope?

Under the current legislation, the trigger for reporting is calculated by looking at each "legal" employer i.e. the employee's direct employer, rather than across the group of companies. Each legal employer meeting the trigger must publish its own report.

However, Italy may see "enterprise network contracts" which establish a form of co-employership. While they are not very common, in such cases, the trigger might consider all the workers of the enterprises who are part of such a contract.

Do we have details on how the requirement for a joint pay assessment will be implemented?

We are awaiting further details.

Do we have details as to how the Directive obligations will be enforced and potential sanctions?

We are awaiting details of measures to align with Directive.

Are there any tools or guidance available to support employers?

Existing non-statutory guidance supporting gender pay reporting is available. No specific updates considering the Directive have been reported.

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