A male employee discovered that he earned less than a female colleague in the same position. His salary increased in the following year, but the gap remained. A year later, he found out that a newly hired female colleague in the same role also earned more.
Upon looking into his complaint, the Norwegian Equality and Anti-Discrimination Tribunal disagreed that the salary gaps were gender-based discrimination. It emphasised that a pay gap does not automatically result in discrimination. It noted that pay gaps only become problematic when linked to non-objective factors.
In the employee’s case, the Tribunal found that the company had objectively justified that the pay gaps resulted from individual salary negotiations that reflected its business needs to secure the necessary talent and qualifications.
IUNO’s opinion
As the new rules on pay transparency are on the way, the case is a good reminder that pay gaps are not automatically unlawful. That said, companies must be ready to defend and document salary differences to limit the risk of compensation claims.
Most companies are already reviewing pay structures and policies to prepare for the coming rules on pay transparency, which we have previously described here. Although the EU directive is not yet part of the EEA Agreement, the Norwegian government has indicated that it will be.
[The Norwegian Anti-Discrimination Tribunal’s decision of 7 March 2025 in case 23/723]