Pay Equity Legislation was enacted to address compensation inequities due to systemic gender discrimination against predominantly female job classes. The legislation’s goal of “equal pay for work of equal value” remains applicable to all public and private sector employers in the province of Ontario with 10 or more employees. In the last 18 months there has been increased effort by the Pay Equity Commission to ensure that all applicable organizations are compliant with the legislation.
For organizations with operations in Ontario
While the purpose of the legislation is to close the pay gap between predominantly female jobs with male comparator jobs of similar value to the organization, the fundamentals of pay equity legislation make for good compensation management, including base salary structures, equitable incentive opportunities (both short- and long-term), and sound salary administration practices.
The best approach is a proactive one, so if a pay equity officer comes knocking, your organization is well positioned to demonstrate compliance.
To ensure that your organization is prepared to respond to a request from the Commission, consider the seven questions below:
1 – Have jobs been grouped into job classes based on the criteria outlined in the Ontario Pay Equity Legislation?
2 – Is there up-to-date job documentation
3 – Has the gender predominance of each job class been determined using the criteria established by the Ontario Pay Equity Commission?
4 – Have jobs been evaluated using a gender neutral job evaluation system?
5 – Is compensation administered in a way that aligns with the outcomes of the job evaluation?
6 – Does the incentive program provide equal earning opportunity for employees in the same job band/grade?
7 – Are all employees eligible for the same or similar benefits and pension?
If you answered No to Any of the above statements, you may not be compliant with pay equity requirements in Ontario.
Quebec Pay Equity Legislation was first introduced in 1996 to address compensation inequities due to systemic gender discrimination against predominantly female job classes. The legislation’s goal of “equal pay for work of equal value” remains applicable to all public and private sector employers in the province of Quebec with 10 or more employees.
More than ten years later and with less than 50% of organizations compliant, the Quebec government enacted some modifications to the law to reinforce compliance – the resulting Bill 25 was adopted in 2009.
For organizations with operations in Quebec
While the purpose of the legislation is to close the pay gap between predominantly female jobs with male comparator jobs of similar value to the organization, the fundamentals of pay equity legislation make for good compensation management, including: base salary structures, equitable incentive opportunities (both short- and long-term) and sound salary administration practices.
The best approach is a proactive one, so if a pay equity officer comes knocking, your organization is well positioned to demonstrate compliance.
To ensure that your organization is prepared to respond to a request from the Commission, consider the six questions below:
1 – Have you identified the changes within the organization since the last pay equity exercise?
2 – Has the gender predominance of each job class been determined using the criteria established by the Quebec Pay Equity Commission?
3 – Have jobs been evaluated using a gender neutral job evaluation system?
4 – Have you tested to see if there are any salary gaps between female and male predominant jobs?
Items to be taken into consideration:
5 – Have you posted the results of the Pay Equity Audit? (see What you need to know section)
6 – Have you completed the annual declaration in terms of pay equity? (see What you need to know section)
If you answered No to Any of the above statements, you may not be compliant with pay equity requirements in Quebec.
From Mercer’s Pay Equity Risk Assessment, a quick and cost-effective solution for understanding current compliance status and potential risks, to Mercer’s Pay Equity Audit, an in-depth analysis of your employee data with respect to achieving and maintaining pay equity, our team of experts offer a continuum of solutions to effectively address your organization’s needs by:
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