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


 
 

Nova Scotia unveils changes to financial hardship unlocking – financial institutions to receive applications starting July 1, 2021

June 11, 2021

Dante Manna with the assistance of Kali Robertson (summer student) The Nova Scotia Government recently released regulations reassigning the authority for administering financial hardship unlocking in the province. Effective July 1, 2021, individuals will apply directly…

Read More

Reuniting with family: who can come to Canada despite COVID-19 restrictions?

June 10, 2021

Brittany Trafford The Canadian borders have been restricted for over a year now and many families have struggled with being separated. Throughout 2020 and early 2021 restrictions have fluctuated as the federal government tried to…

Read More

Unifor Local 64 v Corner Brook Pulp and Paper Limited: citing statutory duty to provide safe workplace as justification to demand drug test

June 7, 2021

Harold Smith, QC with the assistance of Matthew Raske (summer student) A recent labour arbitration decision, Unifor Local 64 and Corner Brook Pulp and Paper Limited, shows how the permissibility of drug and alcohol testing continues…

Read More

Planning for re-opening: what might an international border opening look like in Canada?

June 2, 2021

Brittany Trafford Last week the Maritime provinces announced various re-opening plans based on vaccine trajectories, with Newfoundland and Labrador making an announcement today¹. These plans address, among other things, who will be able to enter…

Read More

COVID-19 immigration update

May 31, 2021

*Last updated: May 31, 2021 (Originally published April 1, 2020) Kathleen Leighton Due to the COVID-19 pandemic, there are various implications for the immigration world, including for those already in Canada, as well as those…

Read More

Nova Scotia unveils reopening plan

May 28, 2021

Katharine Mack Premier Ian Rankin and Chief Medical Officer of Health Dr. Robert Strang provided details on Nova Scotia’s reopening plan this afternoon. The Province’s plan has a total of 5 phases. Phase 1, which focuses…

Read More

Khan v. CBC – the expanding role of privacy law in labour arbitrations

May 27, 2021

Chad Sullivan A recent labour arbitration decision (Canadian Broadcasting Corp. and Canadian Media Guild (Khan), Re, 2021 CanLII 761) provides another example of how privacy law continues to evolve and can directly impact the outcome…

Read More

The Retail Payment Activities Act: the federal government’s proposed regulation of retail payments for FinTech

May 27, 2021

Kevin Landry and Annelise Harnanan (summer student) In April 2021, the federal government introduced the draft Retail Payments Activities Act (“RPAA”) as part of Bill C-30, the Act to implement the 2021 federal budget. Under…

Read More

New Brunswick regulator seeks input on revised proposed rule under Unclaimed Property Act

May 25, 2021

Christopher Marr, TEP and Level Chan with the assistance of Annelise Harnanan (summer student) On May 20, 2021, the New Brunswick Financial and Consumer Services Commission (“FCNB”) released a revised version of one of its…

Read More

Nova Scotia Court of Appeal unwilling to affirm Charter right to testamentary freedom

May 21, 2021

Jennifer Taylor and Bhreagh Ross   The Nova Scotia Court of Appeal has overturned a decision that found a Charter right to testamentary freedom. Nova Scotia (Attorney General) v Lawen Estate¹ involved an appeal by…

Read More

Search Archive


Scroll To Top