Skip to Content

Increasing pay transparency for federally regulated employers under Employment Equity Regulations

Brian G. Johnston, QCJennifer Thompson and Daniel Roth

The Government of Canada has announced the final Regulations Amending the Employment Equity Regulations (“Regulations”). The Regulations come into force on January 1, 2021 and will bring increased pay transparency to federally regulated workplaces. Federally regulated employers with 100 or more employees will be required to file annual employment equity reports with the Minister of Labour on or before June 1 each year, with the first report due by June 1, 2022 covering the 2021 reporting period. These reports will be used to compile aggregated wage gap information on women, Aboriginal people, persons with disabilities, and members of visible minorities.¹ This information will then be published for the first time in the Employment Equity Act: Annual Report 2022.

The existing version of the Regulations will continue to apply to employment equity reports for the 2020 reporting period. The amended Regulations in force as of January 1, 2021 will only apply to reports for the 2021 reporting period and onward.

The Regulations seek to simplify the definition and calculation of salary, no longer requiring employers to annualize salaries for the purposes of reporting. Rather, employers will be required to report more readily available information, including:

  • salary, not including bonus pay or overtime pay;
  • the period over which the salary was paid;
  • the number of hours worked that can be attributed to the salary earned;
  • the amount of any bonuses paid during the reporting period; and
  • the amount of any overtime paid during the reporting period with the corresponding hours worked giving rise to that overtime pay.

The Regulations also provide definitions for overtime pay, overtime hours, and bonus pay, to help guide employers. Employers will be required to maintain and retain records to support their reporting. Employers must also retain information about each employee’s occupational unit group classifications and code under the North American Industrial Classification System.

The Regulations further prescribe that employers must use the definitions found in the Employment Equity Act (“Act”) for the purposes of self-identification in workplace questionnaires feeding into their reporting. The Act provides definitions of Aboriginal people, persons with disabilities, and members of visible minorities, who along with women, constitute the designated groups. Prior to the amended Regulations coming into force, employers were permitted to use their own definitions of designated groups insofar as they were “consistent” with the definitions in the Act. After the Regulations come into force, employers will all be required to use the prescribed definitions, seeking consistent comparison across the aggregated self-identification data.

Canada will be the first country in the world to make wage gap information with respect to women, Aboriginal people, persons with disabilities and members of visible minorities working in federally regulated workplaces available to the public. In addition to the above pay transparency measures, the related Pay Equity Act is also expected to come into force sometime in 2021 following the conclusion of the federal government’s public consultation on the proposed Pay Equity Regulations. The public consultation on the Pay Equity Regulations will remain open until January 13, 2021.

The federal government will be updating the forms associated with filing the annual reports, and the Workplace Equity Information Management System will be updated in advance of the June 1, 2022 reporting deadline.

All federally regulated employers with more than 100 employees who have employment equity obligations should review their policies and procedures in light of these changes to ensure compliance for the 2021 reporting period.


¹ Note that this is the terminology utilized by the Employment Equity Act itself.


This article is provided for general information only. If you have any questions about the above, please contact a member of our Labour and Employment group.

Click here to subscribe to Stewart McKelvey Thought Leadership articles and updates.

Archive

Overview of labour and employment implications of the proposed Federal Budget 2025 – the “Canada Strong Budget”

BY Marina Luro & Sophie Poulos

By Marina Luro and Sophie Poulos Introduction The Canadian government has recently tabled their “Canada Strong Budget 2025” (Budget 2025)[1] – an ambitious plan to increase efficiency and cut “wasteful spending”. In large part,…

Read More

Lost in the weeds: Drafting clarity, fire losses, and marijuana exclusion clauses

BY Tipper McEwan

By Tipper McEwan The British Columbia Court of Appeal recently dealt with a marijuana exclusion in Busato v. Gore Mutual Insurance Company, 2025 BCCA 79.  Mr. Busato had a license…

Read More

Proceed with caution: Supreme Court confirms framework for assessing “Material Changes” requiring timely disclosure in Lundin Mining Corp. v Markowich

By Andrew V. Burke, Jason W.J. Woycheshyn, David F. Slipp, and Noah Archibald Take note all public companies – not all operational surprises can be quietly managed. The Supreme Court…

Read More

Building Canada Act – An Act respecting national interest projects

BY Kim Walsh & Michael O'Keefe

By Kim Walsh and Michael O’Keefe Overview The Government of Canada introduced Bill C-5, the One Canadian Economy Act, just over one month after the 2025 federal election. With Bill…

Read More

Concurrent jurisdiction: New Brunswick Court clarifies intersection of labour and human rights disputes

BY Sheila Mecking & John Morse

By Sheila Mecking and John Morse Historically, unions and employees in New Brunswick have sought to enforce an employee’s human rights through both grievance arbitration and by filing complaints with…

Read More

Canada’s 2025–2027 Immigration Plan: Initial impacts

BY Chiara Nannucci

By Chiara Nannucci On October 21, 2025, the Government of Canada released a report[1] evaluating the effectiveness of its 2025-2027 Immigration Levels Plan (the “2025 Plan”).[2] The 2025 Plan was…

Read More

Obligations for service providers: New Powers of Attorney and Personal Directives Act

BY Zach Geldert, TEP

By Zach Geldert New legislation, the Powers of Attorney and Personal Directives Act, will come into force in Prince Edward Island on November 1, 2025 (the “New Act”). Along with other…

Read More

New PEI Powers of Attorney and Personal Directives Act

BY Zach Geldert, TEP

By Zach Geldert New legislation will come into force on November 1, 2025, concerning powers of attorney and personal directives in Prince Edward Island. The new act, Powers of Attorney…

Read More

A union’s optional approach to following the law

Chad Sullivan and Meaghan MacMaster, CIPP/C, CPHR The Air Canada flight attendants’ strike, the subsequent back-to-work order, and union’s refusal to comply, have all made headlines. Now that the dust…

Read More

Setting a course: Governments signal possible commercial terms and frameworks for Nova Scotia’s first offshore wind Call for Bids

BY David Randell & James Gamblin

David Randell and James Gamblin On September 18th, the federal and Nova Scotia governments issued a joint Strategic Direction Letter (the “Direction“) to the Canada-Nova Scotia Offshore Energy Regulator (the…

Read More

Search Archive