Pay-secrecy clauses cannot be used to prevent workers from disclosing their own pay for the purpose of enforcing equal pay under Article 7(5) of Directive (EU) 2023/970. Member States must put measures in place to prohibit contractual terms that restrict workers from disclosing information about their own pay for that purpose. That does not mean every form of compensation information is unrestricted. Comparative information obtained through an Article 7 request can be subject to purpose limitations under Article 7(6), and employers still need to respect data-protection and confidentiality rules relating to other people's information.
Jurisdiction: European Union
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Article 7 Directly Addresses Pay-Secrecy Restrictions
Article 7(5) of Directive (EU) 2023/970 states that workers must not be prevented from disclosing their pay for the purpose of enforcing the principle of equal pay. It then requires Member States to put measures in place to prohibit contractual terms that restrict workers from disclosing information about their pay. This means an employer cannot rely on a broad confidentiality clause to block a worker from using their own pay information when asserting or investigating an equal-pay concern. The legal focus is not simply transparency as a workplace value. It is the ability to enforce the right to equal pay.
A Contract Cannot Override the Worker Protection
Employment contracts, handbooks and bonus agreements sometimes contain broad wording that treats compensation information as confidential. After national implementation of Article 7(5), employers need to check whether such language could be read as prohibiting a worker from disclosing their own pay for equal-pay purposes. A clause does not become valid simply because the worker signed it. If national law implements the Directive as required, contractual language must operate within that legal framework. Employers should therefore review confidentiality terms and carve out protected pay disclosures rather than relying on general wording that could discourage lawful equal-pay activity.
The EU Rule Is Framed Around Equal-Pay Enforcement
The Directive uses purposeful wording. Article 7(5) protects disclosure of pay for the enforcement of equal pay. Employers should therefore avoid oversimplifying the rule into a statement that every compensation-related disclosure is always unrestricted in every context. National law may create broader employee protections, and other legal rules may apply to whistleblowing, collective rights or workplace communications. The safest EU-level statement is that workers cannot be prevented from disclosing their own pay when doing so serves equal-pay enforcement. Country-specific implementation should be checked before defining the boundaries of broader salary-discussion rights.
Own Pay Is Different From Comparative Pay Information
Article 7 also allows workers to obtain comparative information, including average pay levels broken down by sex for relevant categories of workers. That information is not treated identically to the worker's own pay. Article 7(6) allows employers to require workers not to use information obtained under Article 7, other than information concerning their own pay or pay level, for purposes unrelated to exercising the right to equal pay. This distinction is important when drafting policies. Employers should not label a worker's own pay as confidential in a way that defeats Article 7(5), but they can still implement proportionate rules around the use of comparative information.
Employers Should Review More Than the Employment Contract
Pay-secrecy language can appear outside the signed employment contract. It may be found in staff handbooks, bonus-plan documents, disciplinary policies, codes of conduct, manager scripts or internal confidentiality guidance. A compliance review should therefore search for any wording that could deter workers from discussing or disclosing their own pay for equal-pay purposes. HR teams should also train managers not to issue informal warnings that recreate the same restriction in practice. Removing one clause is not enough if workers continue to be told verbally that salary discussions are prohibited under all circumstances.
National Implementation Still Matters
Directive (EU) 2023/970 sets minimum EU requirements, but Member States implement those requirements through national law. A country can provide protections that are broader than the Directive's minimum formulation or connect pay-discussion rights with existing employment, collective-bargaining or anti-retaliation rules. Multi-country employers should therefore map local restrictions before standardising confidentiality language across the EU. A central policy can establish a protective baseline, but legal teams should confirm whether local legislation requires broader wording, specific notices or additional safeguards against retaliation.
Frequently Asked Questions
Can an employer ban a worker from disclosing their own salary?
Not where the disclosure is for enforcing equal pay. Article 7(5) requires Member States to prohibit contractual terms that restrict workers from disclosing their own pay for that purpose.
Does this mean all salary information can be shared freely?
No. The Directive distinguishes a worker's own pay from comparative information obtained under Article 7, which can be subject to purpose restrictions under Article 7(6).
Should employers remove salary-confidentiality clauses?
Employers should review and revise any clause that could unlawfully prevent workers from using or disclosing their own pay for equal-pay enforcement, while checking national implementation for broader requirements.
Related Guides
Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.