British businesses with operations across Europe are encountering difficulties with the European Union's pay transparency laws due to a fragmented and delayed rollout. The EU directive mandates member states to require companies to disclose starting salaries and pay ranges in job advertisements, with some businesses also needing to report gender pay gaps. These rules are designed to ensure equal pay for equal work between men and women in all 27 EU countries.
While the UK is not subject to this directive, many British companies operate multinationally. EU member states were given until 7 June 2026 to incorporate the directive into their national laws, but only a limited number, such as Italy, Lithuania, Malta, and Slovakia, met this deadline. Amy Bird, a top partner at Clifford Chance, noted that the “patchwork” implementation across the bloc creates compliance challenges for businesses.
Separately, the UK is also developing its own pay transparency plans. Following a call for evidence on equality law reform in April 2025, the Labour government launched a 15-week consultation in July to reform the equal pay framework, which is set to conclude on 27 October. This UK consultation explores options like publishing pay information in job advertisements, mirroring some provisions of the EU directive.