Polish Employers Receive the Gift of EU Pay Transparency Obligations in Recruitment

Just in time for the holiday rush, Poland is the first major economy in the region to carry out any portion of the European Directive (EU) 2023/970 on pay transparency (hereafter referred to as the “PTD”). Poland’s partial implementation of the PTD (officially titled Ustawa z dnia 4 czerwca 2025 r. o zmianie ustawy - Kodeks pracy, hereafter referred to as the “Act”) takes effect on December 24 and is focused solely on ensuring that Article 5 of the PTD is integrated into Polish national law. This article will unwrap the new obligations so there are no surprises for Polish employers. 

What is Article 5 of the PTD? 

Article 5 of the PTD specifically addresses the obligations of employers towards job applicants. Unlike other aspects of the PTD, Article 5 does not have a threshold limitation; it applies to all employers, regardless of employee headcount. 

Pursuant to Article 5:

• Job applicants have a new right to receive information about (i) the job’s “initial pay or its range”—information that must be based on objective, gender-neutral criteria, and (ii) relevant provisions of the collective agreement (if applicable);
• Employers must provide the applicants with the above information in a manner to “ensure an informed and transparent negotiation on pay, such as in a published job vacancy notice, prior to the job interview or otherwise”;
• Job vacancy notices and job titles must be gender neutral and recruitment processes must be led in a non-discriminatory manner; and
• Employers are prohibited from asking applicants about their pay history. 

How Has Poland Transposed Article 5?

When the EU Commission passes a directive, member states are responsible for transposing it into local law within a certain period. In general, directives set out a minimum level of compliance. Member states are left with figuring out implementation details and have the option of setting higher standards. In the case of Article 5 of the PTD, Poland has adopted the language and obligations straight from the Directive with a few specific nuances. 

Scope: 

The new rules, including the right to information, are applicable to all job applicants regardless of the size of their prospective employer. However, the Act applies only to prospective employees and thus new obligations do not concern individuals planning to enter into non-employment civil law contracts, such as contracts of mandate or business-to-business contracts. 

Definition of “Pay”: 

For purposes of informing the applicant about the job’s “initial pay or its range,” all components of remuneration for work, irrespective of their name or nature, as well as other work-related monetary or non-monetary benefits granted to employees must be included in the information provided to the applicant. Note the text of the law does not indicate that employers must be consistent in their choice to disclose either the starting salary or a salary range.

Informing the Applicant: 

Information about the proposed remuneration 

According to the Act, the employer will be required to provide applicants with information about the proposed initial pay (or its range) “in advance to allow the employee to familiarize themselves with the information.”  In practice, the information must be provided at one of the following stages:

• in the job posting for the position;
• prior to the interview – if the employer did not post the job or did not provide pay information in the job posting;
• at the latest, before the employment relationship is established – if the employer did not post the position, did not provide pay information in the job posting or prior to the interview.

Information about the collective bargaining agreement or remuneration regulations

Along with information about the proposed remuneration, the employer will have to provide the applicant with the relevant provisions of the collective bargaining agreement or remuneration regulations, if applicable.

The employer must provide all of the above information in paper or electronic form, allowing the applicant sufficient time to familiarize themselves with them.

Gender-neutral Job Titles and Postings: 

The Act requires the job titles to be “gender neutral.” According to the position recently published by the Ministry of Labour, the obligation to use neutral job titles will apply only at the job-posting stage. However, the wording of the Act may be interpreted as an obligation to use gender-neutral language to other documents used within the organization (e.g., employment contracts or internal regulations).

Additionally, job postings must be formulated in a gender-neutral manner and thus both titles and other expressions that may indicate gender should be adjusted to the principle of gender neutrality. 

Although the Act does not provide for any specific enforcement mechanisms, the risk of non-compliance may result in the employer’s facing an inspection by the labour inspectorate as well as discrimination claims.

What Steps Should Employers Take for Compliance?

Because many employers are only now starting to prepare for the PTD,¹ the Act may be the perfect opportunity for Polish employers to focus not only on the new recruitment obligations but also to overall PTD compliance. We recommend taking the following steps to prepare the organization for the upcoming regulations: 

1. Take the opportunity to initially audit pay data: Although there is no reporting on the starting salaries / pay ranges that must be provided to the applicant, we recommend auditing the Polish compensation scheme to ensure the posted salaries are not contributing to a pay gap, as well as internal regulations to confirm that they comply with non-discrimination principles. An audit also allows employers an opportunity to test the objective criteria used to establish the starting salary / salary ranges. We recommend conducting the audit under the direction of legal counsel to guarantee that remuneration systems and internal regulations are compliant with Polish law and adjusted, as far as possible, to the upcoming pay transparency requirements.
2. Document objective criteria: As a recommended practice, document the use of objective and gender-neutral criteria. We recommend describing the method for determining initial pay or pay ranges in the form of an internal memo (e.g., with reference to job descriptions and external market data). For now, standardized job descriptions and external market data (compiled by reputable sources) are likely considered sufficient to demonstrate objectivity. However, as a result of the full implementation of the PTD, the Polish provisions may soon get more specific as to the acceptable criteria and ways of job value evaluation / pay setting. It should be noted that the Ministry of Labour and the Central Institute for Labour Protection are currently developing a free analytical tool for job evaluation, together with a corresponding guide (at present, only the initial draft versions of this tool and guide are available).
3. Audit and adjust the hiring process: Employers should adjust their recruitment processes by:
   1. revising job postings templates to ensure that job titles as well as other expressions used within the documents are gender neutral²;
   2. implementing standard notice language for starting salary / salary ranges that can be used in template job postings and/or pre-interview communications;
   3. reviewing and revising job postings that will be active from December 24 onward;
   4. reviewing and revising recruitment interviews scenarios;
   5. training talent acquisition teams and interviewers on the new requirements.
4. Audit and adjust additional documentation: It is also recommended to revise other internal documents (such as work regulations or organizational charts) to ensure that the job titles used are gender neutral.

What is the Status of the Full PTD Implementation in Poland?

Even though Poland has implemented a small portion of the PTD, it is still working to implement its remaining obligations. Generally, in Poland, draft laws transposing EU law (including directives) are prepared by the government. The relevant ministry or ministries prepare a draft, which is then submitted to the parliamentary legislative procedure. The adopted bill becomes law when it is signed by the President and published in the official journal.

On December 16 a draft act implementing the PTD in its entirety was published. It will be subject to further stages of the legislative process (including public consultations) and thus may be amended. Below are the key points of this draft:

• Unlike the implementation of Article 5 discussed above, the government plans to implement the rest of the PTD through a separate act (and slightly amend other acts, including the Labour Code).
• Job evaluation will be mandatory for all employers (with the four core evaluation criteria required to be used: skills, effort, responsibility and working conditions).
• Reporting obligations will apply to employers with at least 100 employees.
• Penalties for non-compliance may result in fines, as a rule, of up to PLN 50,000 (approx. USD 14,000), which is a relatively high penalty by Polish labour law standards.
• The draft act is expected to enter into force on June 7, 2026.

Conclusion

Although pay transparency obligations in recruitment are an important development, they constitute only the first step towards full pay transparency implementation. With the transposition deadline under the PTD set for June 7, 2026, employers should expect a considerable portion of new regulations in this area to enter into force in the coming months. It is thus necessary to continue to monitor the developments and actively engage in preparations for the upcoming requirements. Employers that have concerns about the alignment or defensibility of their current pay structures, salary bands, or ranges should consult with legal team.

*Natalia Bigdowska is an attorney at Wardynski & Partners in Poznań, Poland.

**Joanna Dudek is an attorney at Wardynski & Partners in Kraków, Poland.