Canada: Pay Equity: New Time Limits, New Obligations, New Powers

The Act to amend the Pay Equity Act, billed by the Minister of Labour as legislation designed to "strengthen the Pay Equity Act" in response to the concerns expressed during consultations conducted before a parliamentary committee in February 2008, came into force on May 28, 2009. Following that extensive consultation process, it emerged that one out of two businesses subject to the Pay Equity Act had yet to complete or begin work on their pay equity plans and that many were having difficulty implementing the Act's provisions. The resulting amendments made to the Act relate mainly to the timeframe for achieving pay equity and the methods for ensuring that equity is maintained.

Extended Timeframe For Enterprises That Have Not Complied

Enterprises that have not yet taken the steps necessary to implement pay equity or completed their pay equity plans now have until December 31, 2010 to do so and to post the information resulting from the process. Enterprises that had not begun their work on pay equity when the legislation was introduced must use their 2009 data to complete the process. On the other hand, enterprises that had already started the process and had completed the job class identification stage are to complete the pay equity exercise using the same data that was used for the work already in progress, and may also continue to spread the required compensation adjustments over a period not to exceed four years.

However, enterprises that go over the December 31, 2010 deadline and are the subject of a complaint will have to pay the compensation adjustments, if any, that are owed to employees with interest at the legal rate together along with an additional indemnity.

Maintaining Pay Equity

Whereas before, enterprises merely had a general obligation to ensure that pay equity was maintained, and the methods to be used to achieve that result were not specified, enterprises will now be required to conduct a pay equity audit every five years and post the results, including a summary of the audit process, a list of the predominantly female job classes identified in the enterprise, a list of the predominantly male job classes used as comparators, and for each predominantly female job class, the percentage or amount of the compensation adjustments to be paid and the terms and conditions applicable to their payment. The Act also requires enterprises to keep the information used to discharge their obligations to maintain pay equity, along with the content of all postings, for a period of five years after the information was posted. However, the form of posting has been made more flexible, as the Act introduces the possibility of using an electronic or other method of communication capable of reaching and informing employees on a broad basis.

Enterprises that have completed an initial pay equity exercise will have until December 31, 2010 to conduct an audit for the purpose of ensuring that pay equity is being maintained within the enterprise.

Regardless of the size of the enterprise, a pay equity audit may be conducted by the enterprise alone, by a pay equity audit committee, or jointly with a certified association. Where a pay equity audit has been conducted by a committee or jointly with a certified association, a complaint may not be brought against the enterprise. It follows, of course, that a complaint may be made against an enterprise that decides to act alone.

Some New Rules

One important new rule is that all enterprises whose number of employees grows to ten or more during a calendar year will be subject to the Act and will have four years to complete an initial pay equity exercise.

Secondly, whereas the Act formerly did not contain any prescription rules relating to complaints and investigations, some have now been added. Among other things, where a complaint is filed against an enterprise that failed to complete a pay equity exercise within the prescribed time limit, the Commission de l'équité salariale (Pay Equity Commission), in determining the applicable compensation adjustments and amounts to be paid, may not go back more than five years. Where the Commission conducts an investigation on its own initiative regarding a completed pay equity exercise, it may not go back more than one year from the date the investigation was commenced.

A provision has also been added allowing a group of employers to seek recognition as the employer of a single enterprise for purposes of completing a pay equity plan or auditing the maintenance of one. Moreover, all enterprises will be required to submit a report on the implementation of the Act in their enterprise on a yearly basis.

Lastly, the amendments provide for the fines for offences under the Act to be increased, with the maximum fine payable for an employer whose enterprise employs 100 or more employees rising to $45,000 from $25,000.

Additional Power To The Pay Equity Commission

The Act now provides for a voluntary confidential conciliation process. It also provides that the Commission may intervene before the Commission des relations du travail (Labour Relations Board) on matters that call the Commission's jurisdiction into question or pertain to an interpretation of law, and on the request of the said Board, when an employee is not a union member or a complaint is filed against the certified association or a pay equity or audit committee member.

In this connection, it would not be surprising if the Commission were to take a more proactive approach as it will have additional financial means available to assist it in fulfilling its role of informing and accompanying employees and employers through the pay equity process. Its current annual budget of $5.4 million will increase by $1.5 million this year and $2.5 million in 2010-2011.

About Ogilvy Renault

Ogilvy Renault LLP is a full-service law firm with close to 450 lawyers and patent and trade-mark agents practicing in the areas of business, litigation, intellectual property, and employment and labour. Ogilvy Renault has offices in Montréal, Ottawa, Québec, Toronto, and London (England), and serves some of the largest and most successful corporations in Canada and in more than 120 countries worldwide. Find out more at

Voted best law firm in Canada two years in a row.
2008 and 2009 International Legal Alliance Summit & Awards.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.