Directive (EU) 2023/970 · Enforcement
Penalties and enforcement
A shifted burden of proof, uncapped compensation, and penalties member states must make dissuasive.
The burden of proof shifts to the employer
Where an employer has not met its pay-transparency obligations (for example, by failing to report or to provide requested information) it falls to the employer to prove there was no pay discrimination, unless the breach was manifestly unintentional and minor.
Compensation is uncapped
A worker who suffers gender pay discrimination is entitled to full compensation with no fixed ceiling — including back pay and related bonuses or benefits in kind, compensation for lost opportunities and non-material damage, plus interest.
Penalties must be dissuasive
Member states must lay down effective, proportionate and dissuasive penalties. These can include fines linked to an employer's turnover or total payroll — so the exact exposure depends on the national transposition.
Frequently asked
What is the penalty for non-compliance?
National penalties that must be effective, proportionate and dissuasive — fines can be tied to turnover or payroll, with the specifics set by each member state.
What does the 'reversed burden of proof' mean?
If you breach transparency duties, you must prove there was no discrimination — the claimant doesn't have to prove there was.
Is compensation for pay discrimination capped?
No. It is full compensation with no upper limit, including back pay, lost opportunity, non-material damage and interest.
Based on Directive (EU) 2023/970 (enforcement, burden of proof and penalties) via EUR-Lex, and practitioner summaries. Penalty levels are national — confirm locally.