Skip to content

Client Update: Pay equity legislation announced for federally regulated employers

Julia Parent and Graham Haynes

On October 29, 2018, the federal government tabled national pay equity legislation as part of its second budget implementation bill, Bill C-86. This legislation is targeted at reducing the portion of the gender wage gap which is caused by the undervaluation of work traditionally done by women.

Application

The Act, entitled An Act to Establish a Proactive Pay Equity Regime within the Federal Public and Private Sectors (Pay Equity Act) (the “Act”) applies to all federally regulated employers with 10 or more employees, including the federal public service, the federal private sector (i.e. banks, telecommunication companies, marine shipping companies, interprovincial and international transportation companies and others) and the Prime Minister and ministers’ offices.

It is worth noting that the requirements imposed under the Act are different for small employers (defined as those with 10 to 99 employees) and large employers (defined as those with 100 employees or more).

Obligations for employers

Development of a pay equity plan

The Act requires employers to develop a comprehensive pay equity plan within three years of becoming subject to the Act. The pay equity plan must, among other things, identify job classes and their gender predominance in the workplace, analyze the value of the job classes within the workplace and identify where imbalances exist between female and male predominant job classes of equal value.

Compensation equalization

If an employer’s pay equity plan identifies imbalances in a female-predominant job class when compared to male-predominant job classes of equal value, employers will have to phase-in compensation increases which equalize the compensation paid to the female-predominant job class. This may apply to more than one female-predominant job class. If the total equalization amount is at least one percent of the employer’s annual payroll, the employer will have to implement compensation increases. The number of years the entity will have to equalize payment is based on the size of the employer.

Other obligations

The Act also imposes other responsibilities on employers such as providing information to employees regarding dispute resolution procedures, updating the pay equity plan every five years and submitting a short annual statement regarding oversight of the program.

Enforcement

The Act contemplates the appointment of a Pay Equity Commissioner and the creation of a Pay Equity Unit of the Canadian Human Rights Commission which would administer and enforce the Act through a range of compliance and enforcement tools including monetary penalties.

Further information

This update is intended for general information only. If you have questions about the above information, and how it applies to your specific situation, please contact a member of the Stewart McKelvey Labour and Employment group.

SHARE

Archive

Search Archive


 
 

Land use planning in Prince Edward Island – the year in review

December 21, 2023

By Perlene Morrison, K.C., Hilary Newman & Curtis Doyle Once again, the time has come to review the year that was and to chart the course for the year ahead. For municipalities and planning professionals…

Read More

The Offshore Renewable Energy Area: Navigating offshore commitments in Newfoundland and Labrador

December 18, 2023

By Dave Randell, John Samms & Jayna Green A recent Government of Newfoundland and Labrador (“GNL”) announcement affirms the Province’s swift and ambitious approach to offshore wind development. While it may come as a shock…

Read More

Clean sweep: Federal Government tables legislation for Clean Technology Investment Tax Credit

December 15, 2023

By Sadira Jan, Dave Randell, Graham Haynes & Tyler Callahan On November 30, 2023, the Federal Government tabled Bill C-59, entitled An Act to implement certain provisions of the fall economic statement tabled in Parliament…

Read More

Forward focus: Canada’s ambitious immigration plan

December 14, 2023

By Brendan Sheridan The Government of Canada has continued their whirlwind year of immigration program announcements by revealing their plan to modernize and improve the country’s immigration system. This plan, known as “An Immigration System…

Read More

Preparing for Canada’s “Modern Slavery Act”: considerations and guidance for businesses

November 30, 2023

By Christine Pound, ICD.D, Rebecca Saturley, & Daniel Roth Canada’s anti-modern slavery legislation comes into force on January 1, 2024. To prepare for the first reporting deadline on May 31, 2024, organizations need to determine…

Read More

Replace-me-not: Bill C-58 proposes ban on replacement workers in federal strikes and lockouts

November 29, 2023

By Brian Johnston, K.C. and Richard Jordan On November 9, 2023, Minister of Labour, Seamus O’Regan, introduced Bill C-58 in the House of Commons to amend the Canada Labour Code to prohibit the use of…

Read More

Final retail payment activities regulations released

November 28, 2023

By Kevin Landry & Eryka Gregory The Retail Payment Activities Regulations (“Regulations”) under the Retail Payment Activities Act (“RPAA”) were finalized and published in the Canada Gazette Part II on November 23, 2023. The RPAA was…

Read More

Nova Scotia offers new pension option to private sector employers

November 24, 2023

By Level Chan When proclaimed in force, the Nova Scotia Private Sector Pension Plan Transfer Act (the “Transfer Act”) enacted by Bill 339, Financial Measures (Fall 2023) Act will allow the transfer of private sector…

Read More

Bill C-365 calls for plan for implementation of open banking in Canada

November 17, 2023

By Kevin Landry On November 9 2023, Bill C-365, An Act respecting the implementation of a consumer-led banking system for Canadians (“C-365”), short titled as the ‘Consumer-led Banking Act’ was read in the House of…

Read More

More limits: NSCA tightens the test for disallowing a limitations defence

November 15, 2023

By Jennifer Taylor The Nova Scotia Court of Appeal (“NSCA”) has issued an important decision clarifying the test to disallow a limitations defence. The decision, Halifax (Regional Municipality) v Carvery (“Carvery”), has real implications for personal…

Read More

Search Archive


Scroll To Top