News/Pay transparency in companies: When do the new obligations come into force, and what penalties apply for a lack of transparency?

Pay transparency in companies: When do the new obligations come into force, and what penalties apply for a lack of transparency?

For years, the issue of salary levels in Polish companies was shrouded in strict secrecy. It was standard practice in the labour market to include phrases such as ‘salary commensurate with experience’ in job advertisements or to incorporate strict salary confidentiality clauses into employment contracts.

This phase in the history of labour law has now definitively come to an end. The EU Directive on strengthening the application of the principle of equal pay (the so-called Pay Transparency Directive) has forced employers to revolutionise their pay policies.

For management boards and HR and personnel departments, this means one thing: pay transparency is no longer just a trend in employer branding, but has become a binding legal obligation.

Key dates – when did pay transparency come into effect?

The deadline for transposing EU legislation into the Polish Labour Code expired on 7 June 2026. From that date onwards, organisations must apply the new rules in their day-to-day recruitment and HR practices.

This means that companies should already have a transparency framework in place:

  1. Equal pay for work of equal value: The obligation to have objective and gender-neutral job evaluation criteria.
  2. Transparency in recruitment: A ban on asking candidates about their previous earnings and an obligation to state a salary range in job advertisements or prior to the interview.
  3. Legal presumption of non-confidentiality: Employees have the right to know the average pay levels for comparable roles, and clauses prohibiting the disclosure of one’s own earnings have been rendered invalid by law.
  4. Reporting on the gender pay gap: Depending on the size of their workforce, companies must prepare regular reports on the state of pay equality.

Penalties and financial consequences – how much does a lack of transparency cost?

The new regulations have completely reversed the previous burden of proof in court disputes and introduced a severe system of sanctions for companies that fail to comply with the principles of transparency and equality.

1. Reversed burden of proof
If an employee accuses a company of pay discrimination (e.g. by demonstrating that they earn less than someone in an equivalent role with similar qualifications), the employer must prove in court that the difference stems from objective, neutral criteria, rather than discrimination. Having an imprecise or outdated job classification system makes it impossible to win such a dispute.

2. Compensation and damages without an upper limit

An employee against whom the principle of equal pay has been breached is entitled to:

  • Compensation and damages comprising full reimbursement of outstanding wages (including interest),
  • Payment of any bonuses and related benefits of which he was deprived. Importantly, the regulations do not specify an upper limit on the amount of such compensation.

3. Fines imposed by the National Labour Inspectorate (PIP)

Failure to comply with disclosure obligations in job advertisements, asking about previous earnings during the recruitment process, or preventing employees from accessing information on the pay scale are classified as breaches of employees’ rights.

A labour inspector may issue a fine, and if the case is referred to court, fines can range from several to tens of thousands of zlotys for individual breaches.

4. Reputational damage and exclusion from tenders

The implementation of the directive is also linked to ESG requirements. The publication of data revealing a significant pay gap or the loss of court cases is not only a blow to an employer’s reputation (Employer Branding), but is increasingly becoming a formal obstacle to bidding for public contracts and securing bank financing.

A checklist for the Board and HR: Is your company secure?

To avoid substantial compensation claims and inspections by the National Labour Inspectorate (PIP), it is worth checking your organisation’s readiness in relation to the following points:

  • Job grading and job evaluation: Does the company have clear, written criteria for promotion and pay rises?
  • Review of employment contracts: Have unlawful non-disclosure clauses regarding remuneration (NDI) been removed from them?
  • Review of the recruitment process: Do job advertisements specify a salary range, and are recruiters aware of the ban on asking candidates about their previous salary?
  • Pay gap analysis: Has a pay audit been carried out to identify unjustified differences in pay between women and men in equivalent roles?

Implementation of pay transparency with Vinci & Vinci

Adapting an organisation to pay transparency requirements is a project that combines a legal audit, a financial and payroll analysis, and the reorganisation of HR processes.

How do we support our clients?

  • We carry out legal and pay audits: We identify risks of pay discrimination and gaps in current pay structures.
  • We develop pay scales and regulations: We draw up objective job evaluation criteria in line with labour law requirements.
  • We adapt documentation: We update staff regulations, contract templates and recruitment procedures.
  • We train staff and managers: We provide practical guidance on how to conduct pay rise discussions and recruitment processes safely.

Protect your business against claims

Ensure that your remuneration policy complies with current legal requirements and does not expose the board to liability.