Pay Equity
A prohibition against pay inequity in the performance of equal or substantially similar work or in the performance of work of equal value has been incorporated by all jurisdictions in Canada through their human rights legislation. These prohibitions are enforced through a complaint mechanism.
In addition to the general prohibition, some jurisdictions have mandated pay equity in the public sector through positive action designed to correct systemic wage discrimination in predominantly female job classes.
Two provinces, Ontario (in 1990) and Quebec (in 1997), have extended the positive obligation to implement pay equity to the private sector. Employers who are subject to this legislation must identify - within their establishments - job classes that are predominantly female, predominantly male, as well as gender neutral. They must then value the work performed by each job class by utilizing a composite of skills, required effort, responsibilities, and the conditions under which the work is normally performed. Once the categories are evaluated, predominantly female job categories must be compared to predominantly male classes of same or proportionate value. In case of inequity, the wages of the predominantly female job categories must be adjusted to that of the comparator group. Once pay equity is achieved, it must be maintained on a continuous basis.
Our Labour, Employment and Human Rights professionals regularly guide employers through the many issues that can arise in determining whether pay equity exists in a given establishment and, where this is not the case, deliver a comprehensive plan to achieve and maintain pay equity.
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