SPÖ Labour Minister Schumann presents pay transparency draft: Business groups criticise fast-track procedure

Specifically, the reports must show the number of men and women per employee category as well as the average pay of the genders in each category for the respective calendar year. According to the Federal Ministry of Labour, the content is not to change compared with the existing reports. Companies that already pay according to a collective agreement may use that agreement's pay system and are not required to develop their own remuneration structure. "Betriebe, die bereits nach Kollektivvertrag entlohnen, müssen keine eigene Vergütungsstruktur entwickeln, sondern können das Entgeltsystem des Kollektivvertrags verwenden," the ministry said.

Individual right of access and open pay information

Beyond the reporting obligation, the draft provides for an individual right of access for employees: workers should be able to request information about their own pay as well as about the average remuneration of employees performing equivalent or similar work. In addition, job advertisements – or, in the case of unsolicited applications, before the job interview – must include the entry-level salary or a salary range. The Federal Ministry of Labour justifies this by saying that applicants can thus prepare for salary negotiations.

The draft also brings sweeping changes to labour law: "Verbote, über das eigene Gehalt zu reden, werden unwirksam." As a result, existing confidentiality clauses in employment contracts that prohibit staff from discussing pay with colleagues would lose their effect. The EU directive also provides for sanctions, which are to be implemented in Austria as administrative penalties. However, these penalties are to enter into force one year later, in order to give companies a preparation phase.

Easier litigation in pay discrimination cases

Another focus of the draft is on the burden of proof in discrimination proceedings. "Erleichtert werden soll der Zugang zu Verfahren. Bei Diskriminierung hätten bisher nämlich oft die Beweismittel gefehlt, um Entgeltdifferenz einklagen zu können," the ministry said. In doing so, the ministry is responding to a central weakness of previous proceedings, in which those affected frequently failed due to a lack of data.

Criticism from business and NEOS position

The Chamber of Commerce, the Federation of Austrian Industries and the ÖVP Business Association view the draft critically. They "befürchten zusätzliche Bürokratie und Kosten". Markus Hofer, NEOS spokesperson for economic affairs, also spoke out against the plan, warning: "Eine Umsetzung in letzter Minute im Schnellverfahren wäre ein 'Pfusch mit Ansage'." NEOS had likewise recently called for a revision of the directive.

Supporters and political context

In contrast, SPÖ, the Greens, the Austrian Trade Union Federation (ÖGB) and the Chamber of Labour are pushing for swift implementation. The full implementation of the EU directive is also enshrined in the black-red-pink government programme of the current federal government. The deadline for national implementation had already expired on Sunday, as the Federal Ministry of Labour stressed: "Eigentlich sollte die Richtlinie schon mit dem heutigen Sonntag umgesetzt werden."

Marathon of negotiations and open questions

The length of the negotiations looms behind the controversy. The Federal Ministry of Labour emphasises that it has been negotiating the directive for more than two years and that numerous talks have fed into the draft. "Die zahlreichen Gespräche seien aber in den Entwurf eingeflossen, dieser sei also nicht provokant, hieß es aus dem Arbeitsministerium." Among other things, a compromise was reached with the social partners on income reports, setting the threshold only at 100 employees – in line with the minimum standard of the EU directive.

For practical implementation, the availability of data plays an important role: the Federal Ministry of Labour explained that the data required was already available in large, modern companies for personnel administration purposes. The ministry thereby rejects the business representatives' accusation that the draft would impose a disproportionate additional burden. For companies with 250 or more employees, annual submission of income reports is envisaged in future.

This points to a political struggle over the concrete design of pay transparency, pitting deregulation on one side against equality on the other. Observers expect further negotiations in the coming weeks, particularly as the EU deadline has already been missed and Austria is under pressure to implement. Consideration of the draft in political coordination is seen as the first formal step on the way to parliamentary adoption.