News

With the implementation deadline for the EU Pay Transparency Directive fast approaching on 7th of June 2026, one area that Organisations should now be actively focusing on is their recruitment practices. One of the most immediate and practical changes introduced by the Directive is a prohibition on asking job applicants about their current or previous pay. This represents a significant shift for many Organisations and will require careful updates to recruitment processes, documentation, and hiring practices.

What Is Changing?
Under the Directive, Employers will no longer be permitted to ask candidates about their pay history at any stage of the recruitment process. This includes information relating to salary, bonuses, benefits, or any other form of remuneration from current or previous roles. The prohibition applies broadly across all stages of hiring, including application forms, pre
screening, interviews (both formal and informal), engagement with recruitment agencies, and any background checks conducted before an offer is made. Importantly, Organisations should also avoid indirect approaches. Questions designed to infer previous pay levels such as asking candidates to base salary expectations on prior earnings are likely to fall within the scope of the prohibition.

Why This Matters
This requirement is aimed at breaking the cycle of historical pay inequality. Where salaries are based on previous earnings, existing disparities, particularly gender pay gaps
can follow Employees throughout their careers. The Directive seeks to address this by requiring  Employers to base pay decisions on objective, gender-neutral criteria such as the requirements of the role and the candidate’s skills and experience. For Organisations, this represents both a compliance obligation and an opportunity to strengthen fair and transparent pay practices.

A Related Obligation: Providing Pay Information
Alongside the ban on salary history questions, Employers will also be required to provide candidates with clear information on the initial pay level or pay range for a role.
This must be shared before or during the recruitment process and can be included in job advertisements, recruitment materials, or early-stage discussions with candidates.
This requirement reinforces the move towards greater transparency and will require Organisations to be more structured and consistent in how pay is communicated.

Practical Steps Organisations Should Take Now
While the domestic legislation is still in preparation, Organisations should still act early to be best
positioned to implement these changes. Key actions to consider include:

Review recruitment documentation
All application forms, interview guides, scripts, and candidate screening materials should be reviewed and updated to remove any references to pay history.

Assess recruitment agency arrangements
Where external recruitment agencies are used, it is essential to ensure they are aware of the new requirements. Responsibility for compliance will ultimately remain with the hiring organisation.

Train hiring managers
In many Organisations, discussions about previous salary arise informally during interviews. Providing clear guidance to hiring managers is critical to ensure these conversations are handled appropriately and lawfully.

Strengthen pay frameworks
A robust pay structure will be central to compliance. Organisations should ensure they have clearly defined salary bands, objective criteria for determining starting salaries, and documented decision-making processes where discretion is applied.

Risks of Non-Compliance
Failure to comply with the new requirements may expose Organisations to a range of risks, including equal pay claims, compensation awards, reputational damage, and potential
regulatory penalties under the relevant domestic legislation. Taking proactive steps now can significantly reduce these risks.

Key Takeaway
In summary, the ban on asking candidates about their salary history marks a significant step toward fairer and more transparent pay practices. Employers will need to adapt by clearly
communicating salary ranges upfront, updating recruitment materials and interview processes, and ensuring hiring teams are properly trained on these new requirements. Strengthening pay frameworks to support objective and consistent decision-making will also be essential. Organisations that take proactive steps now will not only ensure compliance but also contribute to reducing pay inequality and building greater trust in their recruitment practices.

How Adare Can Help
Preparing for the new legal framework being introduced by the EU Pay Transparency Directive
requires more than a policy update, it requires confidence in your pay structures, your pay data
and your decision-making processes.

We support Irish Organisations by:
• Assessing readiness for Employee pay information requests
• Supporting the development of clear job architecture and role categorisation aligned with ‘work of equal value’ principles
• Reviewing pay structures, pay ranges and progression frameworks to ensure they are objective and defensible
• Conducting pay risk and equal pay assessments ahead of Employee requests
• Advising on practical processes for responding to pay information requests clearly, consistently and compliantly
• Supporting HR and leadership teams with guidance, training and communications as pay transparency obligations evolve

Check out about Shannon Chamber HR Support

Adare is a team of expert-led Employment Law, Industrial Relations and best practice
Human Resource Management consultants. If your Organisation needs advice, support, or
guidance about pay transparency compliance requirements or any HR issues, please
contact Adare by calling (01) 561 3594 or emailing info@adarehrm.ie to learn what services
are available to support your business.