Although the transposition of the EU Pay Transparency Directive into Hungarian law was not completed by the June 7, 2026 deadline, the issue remains on the agenda, and the process is expected to be finalized by the end of the year. The domestic regulation will most likely be similar to the provisions of the EU directive, so businesses can begin reviewing and reshaping their pay systems. Familiarizing themselves with the case law of the Court of Justice of the European Union and national courts can support this preparation.
One of the landmark rulings was delivered in the case of the fashion company Next. The lawsuit was initiated by 3,500 retail sales assistants who felt they were unjustifiably paid less than warehouse employees.
In its decision, the court presented an evaluation
of the sales and warehouse positions. It examined what knowledge is required to
perform the jobs, how much planning and organizational work employees
undertake, whether they assume responsibility for equipment and safety, whether
they have communication, customer service, or training duties, the level of
mental and physical strain they face, and the working conditions under which
they operate. Expectation levels and point values were assigned to these criteria,
and it was concluded that the two roles are essentially of equal value. Next
was required to revise its pay policy and pay approximately £30 million in back
wages (around HUF 13 billion) to the 3,500 retail employees who brought the
claim.
“To avoid similar situations, the solution may lie
in developing a competency framework that defines the required skills and
abilities for each position, and on which an objectively based and legally
robust pay structure can be built,” emphasized Dr. Adrienn Orosz, Head of the
Labour Law Practice Group at LeitnerLaw.
LeitnerLaw and LeitnerLeitner, together with their World of Work business division, have created an integrated system that examines employment issues in a unified and coherent manner and provides clients with full employment expertise through a single point of contact. In practice, this means less coordination, lower risk, and greater focus for clients. Request our offer for the development of your competency framework and pay structure, and feel free to contact us with your labour law questions.
In a classification system that guarantees equal
pay for equal work, jobs of equal value are placed into the same category
(grade), although different roles and positions may exist within a single
category. Pay bands are linked to categories rather than to individual
positions or roles. The pay structure must be objective and gender-neutral.
General, industry-independent factors should be
used to evaluate jobs. At least four criteria should be considered: the skills
required, the effort involved, the level of responsibility, and the working
conditions, although additional factors may also be included. The more detailed
the criteria system, the more objective the comparison will be. It is also
essential that the evaluation be unbiased.
Unjustified discrimination can have serious
consequences: in addition to compensation payable to employees retroactively
for up to three years with no upper limit, fines may also be imposed on the
infringing company. The exact amount is not yet known, but sanctions must be
proportionate, effective, and dissuasive.
Further details: Pay
transparency in practice: a useful method for comparing the value of different
jobs
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