Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Full Document:  

Act current to 2022-11-16 and last amended on 2021-08-31. Previous Versions

PART 2Process for Establishment of Pay Equity Plan (continued)

Increases in Compensation (continued)

Marginal note:Longer phase-in period

  •  (1) An employer may apply to the Pay Equity Commissioner for authorization to phase in increases in compensation that are required to be made under a pay equity plan over a longer phase-in period than the one set out in paragraph 61(2)(c) or (d) or 62(4)(e) or (f).

  • Marginal note:Authorization of Pay Equity Commissioner

    (2) If the Pay Equity Commissioner authorizes a longer phase-in period, the employer must make the increases in compensation in accordance with the authorization.

PART 3Pay Equity Maintenance Review

Updated Pay Equity Plan

Marginal note:Requirement to update plan

 An employer that has established a pay equity plan must update the version of the pay equity plan most recently posted in accordance with section 55, subsection 57(2), section 83, subsection 85(2) or paragraph 94(1)(b), as the case may be, in accordance with this Act.

Marginal note:Notice — employers referred to in subsection 67(1)

  •  (1) An employer referred to in subsection 67(1) must post a notice

    • (a) setting out its obligation

      • (i) to update the most recent version of the pay equity plan identified in the notice, 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 67(2)

    (2) An employer referred to in subsection 67(2) must post a notice

    • (a) setting out its obligation to update the most recent version of the pay equity plan identified in the notice; 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 68(1)

  •  (1) Each employer that is in a group of employers referred to in subsection 68(1) must post a notice

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

    • (b) setting out the group’s obligation

      • (i) to update the most recent version of the pay equity plan identified in the notice, 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 68(2)

    (2) Each employer that is in a group of employers referred to in subsection 68(2) must post a notice

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

    • (b) setting out the group’s obligation to update the most recent version of the pay equity plan identified in the notice; 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:Same-day posting

    (3) Employers that are in a group of employers must all post the notice on the same day.

Marginal note:Requirement to establish pay equity committee

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

    • (a) an employer referred to in any of paragraphs 3(2)(a) to (d) or (2)(e) to (i) that is considered under paragraph 69(a) or 70(a) to have 100 or more employees; or

    • (b) an employer referred to in any of paragraphs 3(2)(a) to (d) or (2)(e) to (i) that is considered under paragraph 69(b) or 70(b) to have less than 100 employees, if some or all of its employees are unionized employees on the day on which the employer posts the notice under subsection 65(1) in respect of the pay equity plan.

  • Marginal note:Voluntary establishment of pay equity committee

    (2) An employer referred to in any of paragraphs 3(2)(a) to (d) or (2)(e) to (i) that is considered under paragraph 69(b) or 70(b) to have less than 100 employees may, on its own initiative or at the request of an employee, decide to establish a pay equity committee if it has all non-unionized employees on the day on which it posts the notice under subsection 65(1) in respect of the pay equity plan that it is required to update.

  • Marginal note:Notice to Pay Equity Commissioner

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

  • Marginal note:Composition of committee

    (4) A pay equity committee must meet the requirements set out in subsection 19(1).

  • Marginal note:Non-unionized employees

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

  • Marginal note:Committee cannot be established

    (6) If an employer is unable to establish a pay equity committee that meets the requirements set out in any of paragraphs 19(1)(a), (b), (d) and (e), it must apply to the Pay Equity Commissioner for authorization to establish a pay equity committee with different requirements than the ones set out in that paragraph.

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

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

    • (a) a group of employers that is considered under section 71 to have 100 or more employees; or

    • (b) a group of employers that is considered under section 71 to have less than 100 employees, if at least one of the employers in the group has unionized employees on the day on which the notice is posted in accordance with subsection 66(1) in respect of the pay equity plan.

  • Marginal note:Voluntary establishment of pay equity committee

    (2) A group of employers that is considered under section 71 to have less than 100 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 all non-unionized employees on the day on which the notice is posted in accordance with subsection 66(1) in respect of the pay equity plan that the group is required to update.

  • 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:Composition of committee

    (4) A pay equity committee must meet the requirements set out in subsection 19(1).

  • Marginal note:Non-unionized employees

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

  • Marginal note:Committee cannot be established

    (6) If a group of employers is unable to establish a pay equity committee that meets the requirements set out in any of paragraphs 19(1)(a), (b), (d) and (e), it must apply to the Pay Equity Commissioner for authorization to establish a pay equity committee with different requirements than the ones set out in that paragraph.

Marginal note:Determination of number of employees — public sector

 For the purpose of section 67,

  • (a) an employer referred to in any of paragraphs 3(2)(a) to (d) is considered to have 100 or more employees if the average of the number of the employer’s employees — in the fiscal year immediately before the fiscal year in which the employer posts the notice in accordance with subsection 65(1) in respect of the pay equity plan that the employer is required to update — is 100 or more; or

  • (b) an employer referred to in any of paragraphs 3(2)(a) to (d) is considered to have less than 100 employees if the average of the number of the employer’s employees — in the fiscal year immediately before the fiscal year in which the employer posts the notice in accordance with subsection 65(1) or (2), as the case may be, in respect of the pay equity plan that the employer is required to update — is less than 100.

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

 For the purpose of section 67,

  • (a) an employer referred to in any of paragraphs 3(2)(e) to (i) is considered to have 100 or more employees if the average of the number of the employer’s employees — in the calendar year immediately before the calendar year in which the employer posts the notice in accordance with subsection 65(1) in respect of the pay equity plan that the employer is required to update — is 100 or more; or

  • (b) an employer referred to in any of paragraphs 3(2)(e) to (i) is considered to have less than 100 employees if the average of the number of the employer’s employees — in the calendar year immediately before the calendar year in which the employer posts the notice in accordance with subsection 65(1) or (2), as the case may be, in respect of the pay equity plan that the employer is required to update — is less than 100.

Marginal note:Determination of number of employees — group of employers

 For the purpose of section 68,

  • (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 — in the calendar year immediately before the calendar year in which the notice is posted in accordance with subsection 66(1) in respect of the pay equity plan that the group is required to update — is 100 or more; or

  • (b) a group of employers is considered to have less than 100 employees if the sum of the average of the number of employees of each of the employers in the group — in the calendar year immediately before the calendar year in which the notice is posted in accordance with subsection 66(1) or (2), as the case may be, in respect of the pay equity plan that the group is required to update — is less than 100.

Marginal note:Application of sections 20 to 24

 Sections 20 to 24 apply in respect of a pay equity committee established under this Part, except that “establishment” is to be read as “updating”.

Marginal note:Notice of update of plan without committee

 If an employer, despite having made all reasonable efforts, is unable to establish a pay equity committee in respect of a pay equity plan that it is required to update, the employer must apply to the Pay Equity Commissioner for authorization to update the pay equity plan without a committee. If that authorization is granted, the employer must post a notice informing the employees to whom the pay equity plan relates that the employer will update the pay equity plan without a committee.

Marginal note:Notice of update of plan without committee — group of employers

 If a group of employers, despite having made all reasonable efforts, is unable to establish a pay equity committee in respect of a pay equity plan that it is required to update, the group must apply to the Pay Equity Commissioner for authorization to update the pay equity plan without a committee. If that authorization is granted, each employer in the group must post a notice informing its employees to whom the pay equity plan relates that the group of employers will update the pay equity plan without a committee.

Marginal note:Committee does not meet requirement after establishment

 If a pay equity committee established by an employer does not, at any time after it has been established, meet the requirements set out in any of paragraphs 19(1)(a), (b), (d) and (e), the employer must apply to the Pay Equity Commissioner for authorization for the continuation of the committee with different requirements than the ones set out in that paragraph.

Marginal note:Committee cannot perform work

 If, at any time after establishing a pay equity committee, an employer is of the opinion that the committee is unable to perform its work, the employer may apply to the Pay Equity Commissioner for authorization to update the pay equity plan without a committee. If that authorization is granted, the employer must post a notice informing the employees to whom the pay equity plan relates that the employer will update the pay equity plan without a committee.

Marginal note:Committee cannot perform work — group of employers

 If, at any time after establishing a pay equity committee, a group of employers is of the opinion that the committee is unable to perform its work, it may apply to the Pay Equity Commissioner for authorization to update the pay equity plan without a committee. If that authorization is granted, each employer in the group must post a notice informing its employees to whom the pay equity plan relates that the group of employers will update the pay equity plan without a committee.

Process for Updating Pay Equity Plan

Marginal note:Identification of new differences in compensation

  •  (1) An employer — or, if a pay equity committee has been established, that committee — must — by applying the rules, criteria and factors, as adapted by regulation, that are set out in sections 32 to 50 and by applying any regulations made under section 181 — identify, as of the times or in the circumstances that are prescribed by the regulations, any differences in compensation between the predominantly female job classes and the predominantly male job classes as a result of any change, since the most recent posting of the pay equity plan, that is likely to have had an impact on pay equity, other than any change excluded by regulation.

  • Marginal note:Multiple plans

    (2) If an employer has established more than one pay equity plan and if, at the time that the employer — or, if a pay equity committee has been established, that committee — is carrying out its obligations under this Act in respect of any one of those plans, the employer or pay equity committee, as the case may be, determines that there are no longer any predominantly male job classes under that plan but that there is at least one such job class under at least one of the other plans, that employer or committee must compare, in accordance with sections 48 to 50, the compensation associated with the predominantly female job classes under that plan with the compensation associated with the predominantly male job classes under the other plans.

Marginal note:Revision of pay equity plan

  •  (1) The employer — or, if a pay equity committee has been established, that committee — must revise the content of the pay equity plan, as set out in section 51, taking into account any differences in compensation identified under section 78.

  • Marginal note:Documentation of changes

    (2) The employer or pay equity committee, as the case may be, must set out in a document any changes made to the pay equity plan.

Posting

Marginal note:Revised pay equity plan and notice

 Once a pay equity plan is revised, the employer must post, close together and all at once, the following documents:

  • (a) the revised pay equity plan;

  • (b) a draft of the document referred to in subsection 79(2); and

  • (c) a notice informing employees to whom the revised pay equity plan relates of their right to provide the employer — or, if a pay equity committee has been established, that committee — with comments on the documents referred to in paragraphs (a) and (b) and the time within which and the manner in which they may exercise that right.

 
Date modified: