Many managers and even HR professionals are left scratching their heads when it comes to determining their pay equity obligations. Here are some answers and observations on the subject.

What companies are covered by the law?

The Pay Equity Act applies to businesses under provincial jurisdiction with an average of 10 or more employees during a calendar year.

When does the work need to be done?

The deadline for completing the first pay equity exercise is generally determined by the following two criteria:

  • The date the company commenced operations
  • The calendar year in which the average number of employees reaches 10 or more.

Une fois l’exercice initial réalisé, le maintien doit se faire à date fixe tous les 5 ans. Il est possible d’utiliser le calculateur d’échéances de la CNESST afin de valider les dates de ces obligations.

Once the initial exercise is completed, maintenance must be performed on a fixed date every 5 years. You can use the CNESST deadline calculator to check the dates of these obligations.

Beyond compliance..

Basically, the goal of the Pay Equity Act is to ensure that female-dominated jobs are paid the same as male-dominated jobs. A pay equity audit therefore examines the pay offered between different positions within the company.

In this sense, employers with a pay structure have much of the work done for them. For those who don’t have such a management tool, the pay equity process can be an opportunity to develop one, thereby complying with the law while positioning themselves advantageously to meet the HR challenges of attracting and retaining talent.

In the context of labor shortages, this means turning a compliance approach into a management tool that adds value to your business strategy.