Prague – A recent survey by the Comp&Ben Association indicates that 60% of companies are at risk of lawsuits and penalties due to their inability to demonstrate fair compensation practices based on objective criteria. Starting June 2026, employers will be required to provide evidence that employees in similar roles receive comparable salaries, including bonuses and other forms of compensation. Additionally, companies with over 100 employees must regularly disclose salary discrepancies between genders, as mandated by the European directive on transparent remuneration.
“Six out of ten companies are unprepared; they either entirely lack a compensation system or need significant redesigning. Nearly 20% of companies do not have any system in place to objectively explain and justify salary differences,” summarized Tomáš Jurčík, director of the Comp&Ben Association. Implementing or revising a compensation system can require several months of dedicated work.
The survey also highlighted that the challenge for employers lies not only in designing the compensation system but also in effectively communicating salary differences to employees. The need for transparency faces internal challenges, such as inadequate employee education, confusion over terminology, distrust, and established habits.
Employers express concerns regarding legal risks, particularly potential disputes with employees. In companies with up to 1,000 employees, 16% perceive the threat of lawsuits as a concern, while in larger companies, this figure rises to 36%. “This is due in part to the larger employee base and the complexity of establishing an equitable compensation structure in larger firms. Moreover, rules must not only be well-designed but also communicated clearly to employees,” noted David Borovec, a member of the association and partner at Borovec Legal.
Sixty-two percent of employers indicate a lack of sufficient information, 56% require more details, and 6% report having no information at all. The changes needed extend beyond minor payroll adjustments. “For many companies, this necessitates a complete overhaul of job descriptions, compensation policies, and communication strategies regarding compensation, especially while the specifics of transposing the EU directive into Czech law remain unclear,” stated Radka Motlová, vice president of the Comp&Ben Association. (November 11)
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