With a recent shift in case law, Germany’s Federal Labor Court has significantly lowered the threshold for asserting pay discrimination through the newly affirmed “pair comparison” approach. At the same time, the EU Pay Transparency Directive introduces far-reaching obligations that employers must implement by 2026. Together, these developments mark a turning point for compensation structures, compliance strategies, and pay-equity processes across organizations. What does the pair comparison entail, why is the Directive so impactful, and what do these changes mean for employers in practice?

Find out more in the latest HR News blog post by Leonie Herzog.

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