The Latest in Employment Law: A Stewart McKelvey Newsletter – Changes to the federal pay equity scheme expected in 2018
Brian Johnston, QC and Julia Parent
In response to the report of the House of Commons committee on pay equity, the federal Liberal government announced its intention to bring in legislation to better ensure that all employers in federally regulated sectors have men and women get equal pay for work of equal value (otherwise known as “pay equity”). Pay Equity is significantly different from equal pay for equal work, which is already required throughout Canada. Although New Brunswick, Nova Scotia and Prince Edward Island have enacted pay equity legislation, that legislation applies only to government bodies/agencies. It is noteworthy that members in the House of Assembly in Newfoundland and Labrador unanimously voted to start the process of enacting pay equity legislation in the province on International Women’s Day 2017.
The big expected change in federal law is to change the current, complaint-based pay equity scheme as set out in the Canadian Human Rights Act, and the Equal Wage Guidelines to a proactive model. Under the current model, while employers must ensure their compensation schemes are compliant so as to avoid a complaint, there are no additional proactive steps that must be taken.
What you need to know.
According to the federal government, the forthcoming legislation “will take a ‘proactive’ approach that’s aimed at helping employers comply with the law rather than forcing employees to lodge complaints about discriminatory wages”.
While there have not been many indications regarding the content of the forthcoming legislation, it will likely resemble the models currently in place in Ontario and Quebec and, if the recommendations in the report of the House of Commons Committee on pay equality are followed, will apply to all federal employers with 15 or more employees.
The proactive pay equity models in Ontario and Quebec require that employers establish and maintain compensation practices that provide for pay equity. The onus is on employers to design a comparison system and compare jobs to ensure that pay equity exists. Once pay equity has been achieved, it must be maintained. There are also posting and reporting requirements that may apply.
Planning for the future.
In light of the forthcoming legislation, which is expected to be tabled in 2018, federal sector employers should familiarize themselves with the “proactive” portions of the Ontario and Quebec pay equity legislation, including the process of comparing jobs, posting, the role of unions and implications for collective bargaining, and the sort of reporting obligations which have created such a stir with the UK’s approach to pay equity.
This update is intended for general information only. If you have questions about how the information or tips above may affect you, please contact any member of our labour and employment group.
Archive
Perlene Morrison and Hilary Newman Municipalities in Prince Edward Island entered a new era when the Municipal Government Act (the “MGA”) was proclaimed into force on December 23, 2017. The MGA modernized the Province’s municipal…
Read MoreVasu Sivapalan and Meg Collins On May 5, 2017, An Act Respecting the Opening of Sealed Adoption Records (“Act”) received royal assent, leading to significant changes for birth parents and adoptees across the province. As…
Read MoreJennifer Taylor Recent amendments to the Nova Scotia Insurance Act are designed “to protect the financial interests of an innocent person when the person’s property is damaged by another person with whom that person shares…
Read MoreBrian G. Johnston, QC Cannabis legalization is coming. The legislation is expected to pass by July with legalization becoming effective by September. Employers should take notice because: 1. There is already a lot of cannabis…
Read MoreJanet Clark and Sean Seviour A recent decision from the Supreme Court of Canada clarifies determination of what is “reasonably foreseeable”: Rankin (Rankin’s Garage & Sales) v J.J., 2018 SCC 19. The case involved two…
Read MoreJennifer Taylor & Michelle Chai A recent Supreme Court decision tackled two issues that have proven complex in Nova Scotia law: summary judgment and limitation periods. The Plaintiff in Cameron v Nova Scotia Association of…
Read MoreBrian G. Johnston, QC The Arbitrator in Lower Churchill Transmission Construction Employers’ Association and IBEW, Local 1620 dismissed a grievance on April 30, 2018 concluding: The Employer did not place the Grievor in employment at…
Read MoreRick Dunlop and Richard Jordan Employers, and benefit providers on their behalf, make policy decisions as to what drugs or benefits (including monetary limits) will be covered by benefit plans. The Board of Trustees in…
Read MoreErin Best The decision of Justice Handrigan in Ryan v. Curlew is the first motor vehicle accident personal injury decision to come out of the Newfoundland and Labrador courts in quite some time. The case…
Read MoreRob Aske The arrival of spring should bring thoughts of renewal… to your privacy practices. Breach reporting under PIPEDA Canada’s federal privacy law known by the acronym PIPEDA (Personal Information Protection and Electronic Documents Act)…
Read More