Pay Transparency Isn’t Optional And Here’s What That Means for HR

The EU Pay Transparency Directive will come into effect across member states by June 2026. It’s designed to close the gender pay gap As of June 2026, the EU Pay Transparency Directive will take full effect across all EU member states. Its aim is straightforward – to close gender pay gaps through greater transparency and accountability. But for HR leaders based in the UK, especially those overseeing operations across Europe, its implications are anything but simple.
At Team Wheel, we’ve been supporting HR functions through complex legislative changes for years. And what’s clear is this: this isn’t a directive you can afford to ignore or misunderstand – particularly if you’re operating across borders.
Although the UK is no longer part of the EU, the directive still applies to UK-headquartered businesses employing people in any EU member state. That includes permanent staff, fixed-term contracts, and in some cases, agency or temporary workers.

Key elements of the directive include:

• The right for employees to request information on pay levels and criteria used to determine pay and progression.
• Mandatory pay transparency in job adverts and offers.
  Standardised job classifications to enable fair pay comparisons.
• Annual or biennial reporting obligations for companies with 100+ employees in the EU.
• Requirements to conduct joint pay assessments where unexplained disparities are identified.

In short, if you’re managing a workforce across the EU and don’t have the infrastructure to deliver on these requirements, the risk is no longer hypothetical.

Why This Matters Now

The consequences of non-compliance are real, and not just limited to regulatory penalties. Reputational damage, strained employee relations, and operational disruption are all very real risks, particularly in sectors such as hospitality, where employment contracts, pay bands, and workforce movement can be highly variable.

For hospitality businesses in particular, where managing multiple sites across multiple jurisdictions is the norm – the directive introduces a new layer of complexity to an already demanding HR landscape.

The directive effectively raises the bar. Employers must not only hold the data but they need to understand it, structure it, and present it in ways that stand up to both internal scrutiny and external review.

Day-to-Day Implications for HR Leaders

Meeting the requirements of the directive isn’t a communications challenge. It’s a systems and process challenge. It calls for a step change in how pay information is collected, stored, compared, and shared.

For HR leaders, that means:

• Reviewing or implementing job classification frameworks that are consistent and comparable across borders.
• Ensuring pay bands are documented and aligned with role profiles and performance criteria.
• Setting up internal procedures to respond to employee requests for pay data in a timely and accurate manner.
• Running internal pay audits that can stand up to external challenge – not only in the UK, but in every EU market you operate in.

Without the right systems in place, these requirements quickly become operational burdens – and the risk of non-compliance increases.

The Role of HR Technology in Achieving Compliance

Compliance with the EU Pay Transparency Directive isn’t simply a matter of policy. It requires a level of data integration, visibility and auditability that most organisations cannot achieve through manual effort or fragmented systems.

The right HR technology can support:

• Standardisation of roles and salary structures across multiple countries and business units.
• Centralised tracking of pay data by gender, location, grade and role.
• Audit-ready reporting tools that support equal pay reviews and comparisons.
• Automated workflows for handling employee requests and disclosures.

But that only happens if your system is correctly configured to support it. That’s where Team Wheel comes in.

We work with businesses to assess their current HR systems (whether it’s Dayforce, Workday or another platform) and identify where gaps exist. From there, we support the implementation of new functionality, improve reporting structures, and help teams get the most out of their existing platforms.

Next Steps for HR Leaders

The deadline may still feel some way off, but the preparation required – particularly for businesses operating across multiple legal frameworks – is significant.

Now is the time to:

• Review your HR tech stack. Can it deliver the data you need, in the format the directive demands?
• Map your job roles and pay bands. Are they clearly structured, consistently applied, and accessible?
• Audit your internal processes. Are you confident your team could respond to a pay transparency request tomorrow?

If the answer to any of these is ‘not yet’, that’s where we can help. Our consulting team specialises in supporting HR functions through systems optimisation and regulatory readiness, providing practical, platform-specific advice without overcomplicating the process.

The EU Pay Transparency Directive is a catalyst. It invites organisations to move beyond reactive compliance and take a more proactive, strategic approach to fairness, data management and employee trust.

With the right systems and support in place, compliance becomes more than a requirement – it becomes an opportunity to build stronger, more transparent people practices across every market you operate in.

If you’re unsure whether your current HR technology is fit for purpose (or just want a clearer picture of what’s required) we’re here to help.

Join Our Webinar Series: Preparing for the EU Pay Transparency Directive

To support HR leaders navigating these changes, Team Wheel is hosting a three-part webinar series starting June 2025, specifically designed for UK-based organisations with EU operations.

Each session will explore a key element of the directive, including:

• Legal and compliance readiness – what you need to know, and what actions to take now.
• HR tech capabilities – how to configure your platform to meet the directive’s requirements.
• Operationalising transparency – embedding new processes into existing workflows.

We’ll be joined by legal experts, HR leaders and system specialists, sharing practical insights to help you prepare confidently and compliantly.