What Federal Employers Need to Know About Pay Equity

In an article published in an HR-related newsletter posted on La Référence, labour and employment lawyers Yanick Gagnon-Carbonneau and Valérie Allard, discuss the recent legislative change introduced by the Pay Equity Act (“the Act”) and its implications for federally regulated employers with ten or more employees.

The Act aims to eliminate the gender pay gap for work of equal value by encouraging employers to assess and amend their pay practices.

In their article, the authors provide a detailed account of the new obligations with which federal employers covered by the Act must comply. According to one such obligation, these employers must prepare and publish a pay equity plan by September 3, 2024. They must also keep the plan up to date by reviewing it every five years.

As a result of this change, the Act establishes a proactive system for achieving pay equity, which includes the creation of pay-equity committees and drafting of pay-equity plans.

Accordingly, applying these changes requires meticulous preparation by employers covered by the Act, particularly with regard to drafting and regularly updating pay-equity plans. Employers must keep track of set deadlines and should consider seeking professional assistance to respond effectively to these new government requirements.

Read the article in full (available in French only)