In Canada, determining whether your organization needs to undergo a pay equity process involves considering specific legal requirements and best practices.
Canada has robust pay equity laws, and depending on the sector, your organization may be legally required to comply with them. Here’s how you can assess the need:
Federal Employers:
If your organization is federally regulated and has 10 or more employees, you must comply with the Pay Equity Act (effective since August 2021). The law requires organizations to assess their pay structures and ensure male- and female-dominated job classes are paid equally for work of equal value.
Provincial Employers:
Provinces like Quebec and Ontario have their own Pay Equity Acts.
Quebec: If you have 10 or more employees, you are required to implement and maintain pay equity.
Ontario: The Pay Equity Act applies to organizations with 10 or more employees and mandates achieving and maintaining pay equity.
Other provinces, like British Columbia and Alberta, do not have specific pay equity laws, but they are covered under general employment standards and human rights legislation, requiring non-discriminatory pay practices.
Other flags you may need to review your pay equity:
- Unexplained wage disparities
- You are a unionized workplace
- New or growing organization
- Retention or recruitment issues
- Complaints or audits
- Industry and competitor benchmarking
- Voluntary initiatives
- Demographic analysis of workforce
Even in jurisdictions without mandatory laws, many organizations conduct pay equity audits voluntarily as part of a corporate social responsibility strategy or to improve workplace culture and trust.
Need help understanding the Pay Equity laws or if your organization needs to undergo a Pay Equity review? Book a Meeting to discuss setting up an audit of your policies and processes!
