The Pay Equity Act is designed to eliminate any salary gap existing due to systemic gender discrimination suffered by persons holding positions in predominantly female job classes.
It applies to every employer whose business employs ten (10) or more employees, although the conditions of application vary and become more onerous as employers cross the 50 and 100-employee thresholds. Only Québec-based employees need to be considered.
The Pay Equity Act requires every employer whose business employs ten (10) or more but fewer than 50 employees to determine the adjustments in compensation required to afford the same remuneration, for work of equal value, to employees holding positions in predominantly female job classes as to employees holding positions in predominantly male job classes receive.
At the ten (10)-employee threshold, employers must determine the adjustments in compensation required to afford the same remuneration, for work of equal value, to employees holding positions in predominantly female jobs classes as to employees holding positions in predominantly male job classes. Contrary to the situation facing employers with 50 or more or 100 or more employees, the Pay Equity Act does not prescribe a specific process to determine the adjustments.
Employers with 50 or more but fewer than 100 employees must establish, in accordance with the Pay Equity Act, a pay equity plan applicable throughout their business.
Employers with 100 or more employees must also establish a plan, except that they must do so in collaboration with their employees through a pay equity committee.
An employer whose business employs 50 or more employees must also establish a pay equity plan. He must, in addition, at the request of a union representing employees in the business, establish a separate plan applicable to those employees.
An employer whose business employs 100 or more employees is further required, in order to enable his employees to participate in the establishment of the pay equity plan, to set up a pay equity committee which includes employee representatives. Recent legislative changes have impacted on employer's obligation to file a pay equity plan. We recommend obtaining in-depth legal advice to ensure compliance with the Pay Equity Act since the deadline for determination of compensation adjustments or for completion of a pay equity plan will vary depending on the date when the employer started doing business in Québec and/or when it started to employ ten (10) or more employees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
