In order to promote wage fairness for women and men performing equal and equivalent work , the German Parliament (Bundestag) passed the Act to Promote Transparency of Pay (Entgelttransparenzgesetz-EntgTranspG) in early 2017 and it came into force on July 6, 2017. The Act, inter alia, provides for review processes and reporting obligations of the employer but also for employee information rights vis-á-vis the employer. The most crucial part of the Act, employee information rights, however, did not come into force until January 6, 2018. Only since that date do employees have the right to know how they are paid in comparison with a group of workers performing equal and equivalent work. In general, the Act favors employers bound by and implementing collective bargaining agreements.
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Originally published in Labor Law Magazine, March 2018
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