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

Full Document:  

Act current to 2020-11-02

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

Increases in Compensation (continued)

The following provision is not in force.

Marginal note:Date payable — plan posted under subsection 57(2)

  •  (1) In the case of an employer that posted a pay equity plan in accordance with subsection 57(2), the increase in compensation required to be made under section 60 is payable on the day after the day on which the employer posted the pay equity plan in accordance with subsection 57(2).

  • Marginal note:Lump sum

    (2) In the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post a pay equity plan under section 55, the employer is, on the day on which compensation is required to be increased under subsection (1), also required to pay to each of its employees referred to in section 60, as a lump sum — for the period beginning on the day after the third anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, and ending on the day after the day on which the employer posted the pay equity plan in accordance with subsection 57(2), or for any shorter period within that period during which the employee occupied a position referred to in section 60 — an amount in dollars equal to the increase in compensation that would have been payable to the employee had that increase been made starting on the day after the third anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b).

  • Marginal note:Lump sum — person that carried out or operated provincial business

    (3) In the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post a pay equity plan in accordance with paragraph 94(1)(b), the employer is, on the day on which compensation is required to be increased under subsection (1), also required to pay to each of its employees referred to in section 60, as a lump sum — for the period beginning on the day after the day that is 18 months after the date on which the employer became subject to this Act and ending on the day after the day on which the employer posted the pay equity plan in accordance with subsection 57(2), or for any shorter period within that period during which the employee occupied a position referred to in section 60 — an amount in dollars equal to the increase in compensation that would have been payable to the employee had the increase been made starting on the day after the day that is 18 months after the date on which the employer became subject to this Act.

  • Marginal note:Phase in of increase

    (4) Despite subsection (1), if an employer posted a pay equity plan in accordance with subsection 57(2) — or posted, on the same day, more than one pay equity plan in accordance with that subsection — and if the total amount, in dollars, of the increase in compensation required to be made by the employer under section 60 in respect of all employees to whom the pay equity plan or plans relate is, for the year in which the increase is required to be made under subsection (1), more than 1% of the employer’s payroll for the year that is immediately before that year, the employer may choose to phase in the increase in respect of that plan or those plans, in which case

    • (a) the phase-in period is deemed to have started

      • (i) on the day after the third anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, if the pay equity plan or plans were posted in accordance with section 55, or

      • (ii) on the day after the day that is 18 months after the date on which the employer became subject to this Act, if the pay equity plan or plans were posted in accordance with paragraph 94(1)(b);

    • (b) the employer must establish, in accordance with the following, a schedule of increases for the phase-in period:

      • (i) the increases are to begin on the day on which the phase-in period is deemed to have started under paragraph (a) and end on the day on which the phase-in period ends,

      • (ii) each increase is to be made on the anniversary date of the previous increase, and

      • (iii) for each year in which an increase is to be made, the total amount, in dollars, of the increase in compensation required to be made by the employer in respect of all employees to whom the pay equity plan or plans relate is to be equal to or more than 1% of the employer’s payroll for the year that is immediately before the year in which the increase is required to be made under subsection (1), except for the final increase, which is, in respect of all employees, to be in an amount that is sufficient to eliminate the differences in compensation;

    • (c) on the day after the day on which the employer posts the pay equity plan or plans in accordance with subsection 57(2), the employer must make the increase indicated in the schedule that corresponds to that day, and then make any subsequent increases in accordance with the schedule;

    • (d) the employer must

      • (i) determine, for each employee, for the period beginning on the day on which the phase-in period is deemed to have started under paragraph (a) and ending on the day on which the employer posts the pay equity plan or plans in accordance with subsection 57(2), or for any shorter period within that period during which the employee occupied a position referred to in section 60, an amount in dollars equal to the amount of the increase or increases that would have been payable to the employee had the increase or increases been made, in accordance with the schedule, during that period, and

      • (ii) pay to the employee, as a lump sum, the amount so determined, on the day after the day on which the employer posts the pay equity plan or plans in accordance with subsection 57(2);

    • (e) if the employer is considered to have 100 or more employees for the purpose of section 6 or 7, as the case may be, it must make the final increase no later than

      • (i) subject to subparagraph (ii), the day after the sixth anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, or

      • (ii) in the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post the pay equity plan or plans in accordance with paragraph 94(1)(b), the day after the day that is 54 months after the date on which the employer became subject to this Act; and

    • (f) if the employer is considered to have 10 to 99 employees for the purpose of section 6 or 7, as the case may be, it must make the final increase no later than

      • (i) subject to subparagraph (ii), the day after the eighth anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, or

      • (ii) in the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post the pay equity plan or plans in accordance with paragraph 94(1)(b), the day after the day that is 78 months after the date on which the employer became subject to this Act.

  • Marginal note:Interest

    (5) An employer that is required to pay a lump sum to an employee under subsection (2) or (3) or subparagraph (4)(d)(ii) must also

    • (a) in the case of a lump sum paid under subsection (2) or (3), pay interest on the amount of each increase that the employee would have received at each payday within the period for which the lump sum is payable had the employer posted the pay equity plan in accordance with section 55 or paragraph 94(1)(b), as the case may be, and had not phased in the increase; and

    • (b) in the case of a lump sum paid under subparagraph (4)(d)(ii), pay interest on the amount of each increase that the employee would have received — at each payday within the period for which the lump sum is payable — based on the schedule established in accordance with subsection (4).

    The interest is to be calculated and compounded daily on the amount, at the rate that is prescribed by regulation or calculated in a manner that is prescribed by regulation, for the period beginning on the day on which the amount would have been required to have been paid and ending on the day on which it is paid.

  • Marginal note:Interest rate if none prescribed

    (6) If no regulations are made for the purpose of subsection (5), the rate of interest is the rate per annum that is the aggregate of 2% per annum and the bank rate in effect on the day in respect of which the interest is calculated.

  • Marginal note:Former employees

    (7) The requirement under this section to pay a lump sum and interest to employees also applies to former employees who occupied a position referred to in section 60 during the period described in subsection (2) or (3) or paragraph 4(d), as the case may be.

  • Marginal note:Definition of year

    (8) For the purpose of subsection (4), year means,

    • (a) in the case of an employer referred to in any of paragraphs 3(2)(a) to (d), its fiscal year; and

    • (b) in the case of an employer referred to in any of paragraphs 3(2)(e) to (i), the calendar year.

The following provision is not in force.

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

The following provision is not in force.

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.

 
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