Pay Equity Act (S.C. 2018, c. 27, s. 416)

Application

Marginal note:Employers subject to Act on coming into force

6 The following employers become subject to this Act on the date on which this section comes into force:

• (a) an employer referred to in any of paragraphs 3(2)(a) to (d) that

  • (i) is considered under subparagraph 8(a)(i) to have 10 to 99 employees, or

  • (ii) is considered under subparagraph 8(b)(i) to have 100 or more employees; and

• (b) an employer referred to in any of paragraphs 3(2)(e) to (i) that

  • (i) is considered under subparagraph 9(a)(i) to have 10 to 99 employees, or

  • (ii) is considered under subparagraph 9(b)(i) to have 100 or more employees.

Marginal note:Later date in public sector — 10 to 99 employees

• 7 (1) An employer referred to in any of paragraphs 3(2)(a) to (d) that is considered under subparagraph 8(a)(ii) to have 10 to 99 employees becomes subject to this Act on the first day of the fiscal year immediately after the fiscal year in which the average of the number of the employer’s employees was at least 10 but less than 100.

• Marginal note:Public sector — 100 or more employees

  (2) An employer referred to in any of paragraphs 3(2)(a) to (d) that is considered under subparagraph 8(b)(ii) to have 100 or more employees becomes subject to this Act on the first day of the fiscal year immediately after the fiscal year in which the average of the number of the employer’s employees was 100 or more.

• Marginal note:Private sector and territorial governments — 10 to 99 employees

  (3) An employer referred to in any of paragraphs 3(2)(e) to (i) that is considered under subparagraph 9(a)(ii) to have 10 to 99 employees becomes subject to this Act on January 1 of the calendar year immediately after the calendar year in which the average of the number of the employer’s employees was at least 10 but less than 100.

• Marginal note:Private sector and territorial governments — 100 or more employees

  (4) An employer referred to in any of paragraphs 3(2)(e) to (i) that is considered under subparagraph 9(b)(ii) to have 100 or more employees becomes subject to this Act on January 1 of the calendar year immediately after the calendar year in which the average of the number of the employer’s employees was more than 100.

Marginal note:Determination of number of employees — public sector

8 For the purpose of sections 6 and 7

• (a) an employer referred to in any of paragraphs 3(2)(a) to (d) is considered to have 10 to 99 employees if

  • (i) the average of the number of the employer’s employees in the fiscal year immediately before the fiscal year in which this section comes into force is at least 10 but less than 100, or

  • (ii) the average of the number of the employer’s employees in the fiscal year in which this section comes into force or in any subsequent fiscal year is at least 10 but less than 100; and

• (b) an employer referred to in any of paragraphs 3(2)(a) to (d) is considered to have 100 or more employees if

  • (i) the average of the number of the employer’s employees in the fiscal year immediately before the fiscal year in which this section comes into force is 100 or more, or

  • (ii) the average of the number of the employer’s employees in the fiscal year in which this section comes into force or in any subsequent fiscal year is 100 or more.

Marginal note:Determination of number of employees — private sector and territorial governments

9 For the purpose of sections 6 and 7

• (a) an employer referred to in any of paragraphs 3(2)(e) to (i) is considered to have 10 to 99 employees if

  • (i) the average of the number of the employer’s employees in the calendar year immediately before the calendar year in which this section comes into force is at least 10 but less than 100, or

  • (ii) the average of the number of the employer’s employees in the calendar year in which this section comes into force or in any subsequent calendar year is at least 10 but less than 100; and

• (b) an employer referred to in any of paragraphs 3(2)(e) to (i) is considered to have 100 or more employees if

  • (i) the average of the number of the employer’s employees in the calendar year immediately before the calendar year in which this section comes into force is 100 or more, or

  • (ii) the average of the number of the employer’s employees in the calendar year in which this section comes into force or in any subsequent calendar year is 100 or more.

Marginal note:Exemption

10 The governments of Yukon, the Northwest Territories and Nunavut are exempt from the application of this Act until the date that the Governor in Council may, by order, specify in respect of that government.

Marginal note:Exemption

• 11 (1) Indigenous governing bodies that are employers are exempt from the application of this Act until the date that the Governor in Council may, by order, specify.

• Marginal note:Definition of Indigenous governing body

  (2) In this section, Indigenous governing body means a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982.

PART 1Pay Equity Plan

Marginal note:Requirement to establish plan

12 Every employer must establish a pay equity plan in accordance with this Act in respect of its employees.

Marginal note:Requirement to establish plan — group of employers

13 Every group of employers must establish a pay equity plan in accordance with this Act in respect of the employees of the employers in the group.

Marginal note:Notice — employers referred to in subsection 16(1)

• 14 (1) An employer referred to in subsection 16(1) must post a notice

  • (a) setting out its obligation

    • (i) to establish a pay equity plan, and

    • (ii) to make all reasonable efforts to establish a pay equity committee for that purpose;

  • (b) setting out the requirements for the committee’s membership;

  • (c) informing its non-unionized employees, if any, of their right to designate the committee members who will represent them; and

  • (d) informing its unionized employees, if any, that their bargaining agent will select the committee members who will represent the employees who are members of any bargaining unit represented by that bargaining agent.

• Marginal note:Notice — employers referred to in subsection 16(2)

  (2) An employer referred to in subsection 16(2) must post a notice

  • (a) setting out its obligation to establish a pay equity plan; and

  • (b) if it has decided to establish a pay equity committee,

    • (i) setting out the requirements for the committee’s membership, and

    • (ii) informing its employees of their right to designate the committee members who will represent them.

Marginal note:Notice — group of employers referred to in subsection 17(1)

• 15 (1) Each employer that is in a group of employers referred to in subsection 17(1) must post a notice

  • (a) indicating that it is in a group of employers;

  • (b) setting out the group’s obligation

    • (i) to establish a pay equity plan, and

    • (ii) to make all reasonable efforts to establish a pay equity committee for that purpose;

  • (c) setting out the requirements for the committee’s membership;

  • (d) informing the employer’s non-unionized employees, if any, of their right to designate the committee members who will represent the non-unionized employees of all of the employers in the group of employers; and

  • (e) informing the employer’s unionized employees, if any, that their bargaining agent will select the committee members who will represent the employees — of all of the employers in the group of employers — who are members of any bargaining unit represented by that bargaining agent.

• Marginal note:Notice — group of employers referred to in subsection 17(2)

  (2) Each employer that is in a group of employers referred to in subsection 17(2) must post a notice

  • (a) indicating that it is in a group of employers;

  • (b) setting out the group’s obligation to establish a pay equity plan; and

  • (c) if the group has decided to establish a pay equity committee,

    • (i) setting out the requirements for the committee’s membership, and

    • (ii) informing the employer’s employees of their right to designate the committee members who will represent the employees of all of the employers in the group of employers.

Marginal note:Requirement to establish pay equity committee

• 16 (1) The following employers must, in respect of the pay equity plan that the employer is required to establish, make all reasonable efforts to establish a pay equity committee:

  • (a) an employer that is considered to have 100 or more employees for the purpose of section 6 or 7, as the case may be; or

  • (b) an employer that is considered to have 10 to 99 employees for the purpose of section 6 or 7, as the case may be, if some or all of its employees were unionized employees on the date on which the employer became subject to this Act.

• Marginal note:Voluntary establishment of pay equity committee

  (2) An employer that is considered to have 10 to 99 employees for the purpose of section 6 or 7, as the case may be, may, on its own initiative or at the request of an employee, decide to establish a pay equity committee if all of its employees were non-unionized employees on the date on which the employer became subject to this Act.

• Marginal note:Notice to Pay Equity Commissioner

  (3) An employer referred to in subsection (2) that establishes a pay equity committee must notify the Pay Equity Commissioner that it has done so.

Marginal note:Requirement to establish pay equity committee — group of employers

• 17 (1) The following groups of employers must, in respect of the pay equity plan that the group is required to establish, make all reasonable efforts to establish a pay equity committee:

  • (a) a group of employers that is considered under section 18 to have 100 or more employees; or

  • (b) a group of employers that is considered under section 18 to have 10 to 99 employees, if at least one of the employers in the group had unionized employees on the date on which it became subject to this Act.

• Marginal note:Voluntary establishment of pay equity committee

  (2) A group of employers that is considered under section 18 to have 10 to 99 employees, may, on its own initiative or at the request of an employee, decide to establish a pay equity committee if each of the employers in the group had only non-unionized employees on the date on which it became subject to this Act.

• Marginal note:Notice to Pay Equity Commissioner

  (3) A group of employers referred to in subsection (2) that establishes a pay equity committee must notify the Pay Equity Commissioner that it has done so.

Marginal note:Number of employees — group of employers

18 For the purpose of section 17,

• (a) a group of employers is considered to have 100 or more employees if the sum of the average of the number of employees of each of the employers in the group — that average, for each of those employers, being the average of the number described in paragraph 9(a) or (b) that determined the date on which the employer became subject to this Act — is 100 or more; and

• (b) a group of employers is considered to have 10 to 99 employees if the sum of the average of the number of employees of each of the employers in the group — that average, for each of those employers, being the average of the number described in paragraph 9(a) that determined the date on which the employer became subject to this Act — is at least 10 but less than 100.

Marginal note:Composition of committee

• 19 (1) A pay equity committee is to be composed of at least three members and must also meet the following requirements:

  • (a) at least two-thirds of the members must represent the employees to whom the pay equity plan relates;

  • (b) at least 50% of the members must be women;

  • (c) at least one member must be a person selected by the employer to represent it;

  • (d) if some or all of the employees to whom the pay equity plan relates are unionized employees, there must be at least the same number of members to represent those employees as there are bargaining agents, with each bargaining agent selecting at least one person to be a member and to represent employees who are members of any bargaining unit represented by that bargaining agent; and

  • (e) if some or all of the employees to whom the pay equity plan relates are non-unionized employees, at least one member must be a person selected by those employees to represent them.

• Marginal note:Non-unionized employees

  (2) Non-unionized employees must select members to represent them by a majority of votes.

• Marginal note:Committee cannot be established

  (3) If the employer is unable to establish a pay equity committee that meets the requirements set out in any of paragraphs (1)(a), (b), (d) and (e), it must apply to the Pay Equity Commissioner for authorization to establish a committee with different requirements than the ones set out in that paragraph.