Equal remuneration in capital group companies?

Additionally, the CJEU pointed out that if the pay conditions of workers of different sex performing equal work or work of equal value can be attributed to a “single source”, then the work and the pay of those workers can be compared on the basis of Article 157 TFEU, which states that “Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value is applied.”, even if they perform their work in different establishments that constitute a single source.

Thus, this ruling may open discussions over differences in pay conditions in organisations with wide geographical spread, e.g. stores in different locations, and over the extent to which the regionalisation of work conditions is acceptable

Local courts, legislators and employers will also need to consider whether the ruling will require changes to be made in local regulations or practices. The most interesting issue is how to interpret what “single source” means, including whether different employers in the same capital group constitute a single source and whether group companies will therefore have to adjust pay rates between group companies. 

This ruling fits into a larger discussion concerning the requirement of transparency of remuneration conditions and equal treatment of employees.