Pay Equity Regulations (SOR/2021-161)

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Pay Equity Act. (Loi)

band

band has the same meaning as in subsection 49(2) of the Act. (bande)

frozen

frozen, in respect of compensation associated with a job class, means that the compensation includes

• (a) salary at a rate that is continued in force under section 107 of the Federal Public Sector Labour Relations Act;

• (b) salary at a rate set out in a collective agreement applicable to a bargaining unit for which a strike may be declared or authorized without contravening subsection 194(1) of that Act or for which the conditions in paragraphs 89(1)(a) to (d) of the Canada Labour Code are met; or

• (c) salary at a rate that

  • (i) under section 56 of the Federal Public Sector Labour Relations Act, cannot be altered except under a collective agreement or with the consent of the Federal Public Sector Labour Relations and Employment Board,

  • (ii) under subsection 24(4) of the Canada Labour Code, cannot be altered except pursuant to a collective agreement or with the consent of the Canada Industrial Relations Board, or

  • (iii) under paragraph 50(b) of the Canada Labour Code, cannot be altered without the consent of the bargaining agent. (gelée)

Marginal note:References to employers

2 If a group of employers is recognized by the Pay Equity Commissioner as a single employer under section 106 of the Act, every reference in sections 10, 14 and 15, subsection 16(1), sections 18 to 20 and 22, subsections 23(1) to (6) and sections 24 to 26, 28 to 31, 38.1, 39 and 41 to 46.1 to an employer is, in respect of the group of employers, to be read as a reference to that group of employers unless the context otherwise requires.

Postings — General Rules

Marginal note:Format and place

3 A document that is required under the Act to be posted must be posted in printed or electronic form and in such a way as to be readily available to all employees to whom the document relates. A document in printed format must be posted in a conspicuous place.

Marginal note:Accessibility

4 If an employee to whom a document that is required to be posted under the Act relates has a disability as defined in section 2 of the Accessible Canada Act, that document must be posted in a form that is accessible to that employee.

Marginal note:Information to be provided

5 An employer that posts in electronic form a document that it is required to post under the Act must provide the employees to whom the document relates with any information necessary to enable them to access the document.

Marginal note:Date of posting

6 An employer that makes any posting under the Act must indicate in the posting the date on which the posting is made.

Pay Equity Plan

Marginal note:Notice — employer’s obligation

• 7 (1) An employer that is required to post a notice under subsection 14(1) or (2) of the Act must do so within 60 days after the day on which it becomes subject to the Act.

• Marginal note:Duration of posting

  (2) The employer must keep the notice posted until it posts the final version of the pay equity plan in accordance with subsection 55(1) or paragraph 57(2)(b) or 94(1)(b) of the Act, until it posts a notice under subsection 15(1) or (2) of the Act or until it becomes required under subsection 30(6) of the Act to establish more than one pay equity plan.

Marginal note:Notice — group of employers’ obligation

• 8 (1) An employer that is in a group of employers and that is required to post a notice under subsection 15(1) or (2) of the Act must do so

  • (a) within 60 days after the day on which the Pay Equity Commissioner recognizes the group as a single employer under section 106 of the Act if the group of employers becomes subject to the Act, for the purposes of subsection 55(1) and paragraphs 61(1)(b) and 89(2)(b) of the Act, less than 60 days after the day on which they are recognized; and

  • (b) by the date on which the group of employers becomes subject to the Act, for the purposes referred to in paragraph (a), if that date is 60 days or more after the day on which the Pay Equity Commissioner recognizes the group as a single employer under section 106 of the Act.

• Marginal note:Duration of posting

  (2) The employer must keep the notice posted until each employer in the group of employers posts the final version of the pay equity plan in accordance with subsection 55(1) or paragraph 57(2)(b) of the Act, until the employer posts a notice under subsection 14(1) or (2) of the Act or until the group of employers becomes required under subsection 30(6) of the Act to establish more than one pay equity plan.

Marginal note:Notice — establishment of plan without committee

• 9 (1) An employer that is required, under section 25, 26, 28 or 29 of the Act, to post a notice of the establishment of a pay equity plan without a pay equity committee must do so within 60 days after the day on which the Pay Equity Commissioner approves the establishment of the plan without a committee.

• Marginal note:Duration of posting

  (2) The employer must keep the notice posted until it posts the final version of the pay equity plan in accordance with subsection 55(1) or paragraph 57(2)(b) or 94(1)(b) of the Act.

Process for Establishment of Pay Equity Plan

Frozen Compensation

Marginal note:Prohibited comparison — frozen compensation

10 In carrying out the comparison of compensation under sections 47 to 50 of the Act, an employer — or, if a pay equity committee has been established, that committee — must ensure that no comparison is made between frozen compensation associated with a predominantly female or predominantly male job class and compensation that is not frozen and that is associated with a predominantly female or predominantly male job class in which unionized employees occupy positions, unless the salary rate that is used to determine salary in the calculation of the frozen compensation associated with a job class is

• (a) the salary rate obtained by adding, to the highest salary rate in the range of salary rates for positions in the job class, the product obtained by multiplying

  • (i) the salary at the highest rate in the range of salary rates for positions in the job class

  by

  • (ii) the average percentage by which, since the compensation associated with the job class became frozen, the salary for positions in job classes that contain positions occupied by unionized employees in respect of whom the pay equity plan applies and who are governed by a collective agreement that is not expired has increased; or

• (b) if a pay equity committee has been established, the salary rate determined using a method other than the one set out in paragraph (a) that minimizes, to the extent possible, the differences in compensation that result only from the compensation associated with a job class being frozen.

Factors

Marginal note:Calculation — equal average method

• 11 (1) The factor referred to in paragraph 49(1)(d) of the Act and the factor referred to in paragraph 28(d) are determined by the formula

  ((A × B) − C) ÷ D

  where

  A

  is the number of predominantly female job classes within the band;

  B

  is,

  • (a) if there is more than one predominantly male job class within the band, the average compensation associated with the predominantly male job classes within the band,

  • (b) if there is only one predominantly male job class within the band, the compensation associated with that job class, or

  • (c) if there are no predominantly male job classes within the band, the compensation calculated under paragraph 49(1)(b) of the Act or paragraph 28(b), as the case may be;

  C

  is the sum of the compensation associated with the predominantly female job classes within the band; and

  D

  is the sum of the differences, for each predominantly female job class within the band whose compensation is less than the value determined for B, between the value of B and the compensation associated with the job class.

• Marginal note:Clarification

  (2) In the calculation of the factor referred to in paragraph 28(d), references in subsection (1) to a predominantly male job class are to be read as references to a predominantly male job class chosen or created, as the case may be, under subsection 19(1).

Marginal note:Calculation — equal line method

• 12 (1) With respect to a predominantly female job class, the factor referred to in paragraph 50(1)(c) of the Act and the factor referred to in paragraph 29(1)(c) are determined by the formula

  ((A × B) ÷ C) + (D – (E × B))

  where

  A

  is determined by the formula

  F ÷ G

  where

  F

  is the absolute value of the difference between the compensation associated with the predominantly female job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class, and

  G

  is the compensation associated with such a predominantly male job class;

  B

  is determined by the formula

  ((H − I) − (J × K)) ÷ (L − (M × K))

  where

  H

  is the sum of the products obtained by multiplying, for each predominantly female job class, the value of work performed in the job class by the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class,

  I

  is the sum of the products obtained by multiplying, for each predominantly female job class, the value of work performed in the job class by the compensation associated with that job class,

  J

  is determined by the formula

  (P – Q) ÷ R

  where

  P

  is the sum of the compensation associated with predominantly male job classes, were such job classes located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job classes,

  Q

  is the sum of the compensation associated with the predominantly female job classes, and

  R

  is the sum of the absolute values of the differences, for each predominantly female job class that is located below the male regression line, between the compensation associated with the job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class;

  K

  is the sum of the products obtained by multiplying, for each predominantly female job class that is located below the male regression line, the value of the work performed in the job class by the absolute value of the difference between the compensation associated with the job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class,

  L

  is the sum of the products obtained by multiplying, for each predominantly female job class that is located below the male regression line, the value of the work performed in that job class by the quotient calculated for the job class using the formula set out in A in this subsection,

  M

  is determined by the formula

  (N ÷ O)

  where

  N

  is the sum of the quotients calculated using the formula set out in A in this subsection, for each predominantly female job class that is located below the male regression line, and

  O

  is the sum of the absolute values of the differences between the compensation associated with each predominantly female job class that is located below the male regression line and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class;

  C

  is an amount equal to the difference referred to in paragraph 50(1)(c) of the Act or paragraph 29(1)(c), as the case may be;

  D

  is the value determined for J in this subsection; and

  E

  is the value determined for M in this subsection.

• Marginal note:Job class chosen or created

  (2) In the calculation of the factor referred to in paragraph 29(1)(c), a reference in subsection (1) to a predominantly male job class is to be read as a reference to a predominantly male job class chosen or created, as the case may be, under subsection 19(1).

Marginal note:Clarification

13 The factors referred to in sections 11 and 12 must be calculated without regard either to the number of employees or to the number of positions in a job class.

Rules if Regression Lines Cross

Marginal note:Choice of method

14 For the purposes of subsection 50(2) of the Act, the following rules apply:

• (a) an employer — or, if a pay equity committee has been established, that committee — must apply the rules set out in paragraphs 50(1)(b) to (d) of the Act, without taking into account subparagraph 50(1)(b)(i); and

• (b) if the application of the rules in paragraph (a) does not cause the regression lines to coincide without reducing the compensation associated with any job class, the employer or pay equity committee, as the case may be, must instead compare the compensation using

  • (i) the equal average method set out in section 49 of the Act,

  • (ii) the segmented line method set out in section 15, or

  • (iii) the sum of differences method set out in section 16.

Marginal note:Segmented line method

15 An employer or pay equity committee, as the case may be, that uses the segmented line method must apply the following rules:

• (a) the employer or pay equity committee must divide the predominantly female job classes and the predominantly male job classes into the following two segments:

  • (i) one segment that includes the job classes in which the value of work performed is less than the value at which the regression lines established under paragraph 50(1)(a) of the Act intersect, and

  • (ii) one segment that includes the job classes in which the value of work performed is equal to or greater than the value at which the regression lines established under that paragraph intersect;

• (b) for each segment, the employer or pay equity committee must establish a female regression line for the predominantly female job classes in the segment and a male regression line for the predominantly male job classes in the segment;

• (c) in a segment in which the female regression line is entirely below the male regression line, the employer or pay equity committee must apply the rules set out in paragraphs 50(1)(b) to (d) of the Act, and if the application of those rules does not cause the male and female regression lines to coincide without reducing the compensation associated with any job class, the employer or committee must use the equal average method set out in section 49 of the Act or the sum of differences method set out in section 16 to compare the compensation associated with all predominantly female job classes and predominantly male job classes; and

• (d) in a segment in which the female regression line crosses the male regression line, the employer or committee must apply the rules set out in paragraphs 50(1)(b) to (d) of the Act, without taking into account subparagraph 50(1)(b)(i), and if the application of those rules does not cause the male and female regression lines to coincide without reducing the compensation associated with any job class, the employer or committee must use the equal average method set out in section 49 of the Act or the sum of differences method set out in section 16 to compare the compensation associated with all predominantly female job classes and predominantly male job classes.

Marginal note:Sum of differences method

• 16 (1) The employer or pay equity committee, as the case may be, that uses the sum of differences method must multiply, for each predominantly female job class that is located below the male regression line established under paragraph 50(1)(a) of the Act, the factor calculated in accordance with subsection (2) by the absolute value of the difference between the compensation associated with the predominantly female job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class.

• Marginal note:Factor

  (2) For the purposes of subsection (1), the factor is the result of the formula

  (A − B) ÷ C

  where

  A

  is the sum of the compensation associated with predominantly male job classes, were such job classes located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job classes;

  B

  is the sum of the compensation associated with the predominantly female job classes or the value determined for A, whichever is less; and

  C

  is the sum of the absolute values of the differences, for each predominantly female job class that is located below the male regression line, between the compensation associated with the job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class.

• Marginal note:Increase in compensation

  (3) The increase in compensation associated with a predominantly female job class located below the male regression line is the product calculated in accordance with subsection (1) in respect of that job class.

Marginal note:Clarification

17 The segmented line method set out in section 15 and the sum of differences method set out in section 16 are to be applied without regard either to the number of employees or to the number of positions in a job class.

Obligations — No Predominantly Male Job Classes

Marginal note:Application

18 Sections 19 to 29 apply with respect to an employer — or, if a pay equity committee has been established, to that committee — for the determination of differences in compensation for the purposes of section 60 of the Act, if the employer or committee, as the case may be, has determined that there are no predominantly male job classes.

Marginal note:Choice of method

• 19 (1) An employer — or, if a pay equity committee has been established, that committee — must use, to determine differences in compensation for the purposes of section 60 of the Act

  • (a) at least three predominantly male job classes of its choice from another employer that meets the conditions set out in subsection (2); or

  • (b) three fictional predominantly male job classes, each of which is created by the employer or committee based on a different typical job class set out in Schedule 1.

• Marginal note:Other employer

  (2) For the purposes of paragraph (1)(a), the other employer must meet the following conditions:

  • (a) it must have at least three job classes that it — or, if a pay equity committee has been established by the other employer, that committee — has determined under section 35 of the Act to be predominantly male and for which the compensation has been calculated in accordance with sections 44 to 46 of the Act; and

  • (b) it must agree to provide the employer — or, if a pay equity committee has been established by that employer, that committee — that has chosen to use those job classes with the data in its possession that is necessary to determine the value of work performed in those job classes and, for each job class chosen, with the salary at the highest rate in the range of salary rates for positions in the job class.

• Marginal note:Criteria

  (3) An employer — or, if a pay equity committee has been established, that committee — choosing job classes provided by another employer under paragraph (1)(a) must, to the extent possible, ensure that those job classes

  • (a) come from an employer with characteristics similar to its own — or, in the case of a pay equity committee choosing job classes, those of the relevant employer — such as the following:

    • (i) the two employers are part of the same industry,

    • (ii) they operate in regions where the cost of living is similar,

    • (iii) they have a similar number of employees,

    • (iv) they have a similar proportion of unionized employees, and

    • (v) they have similar compensation practices; and

  • (b) are representative of the range of values of work performed in the job classes of that other employer, as determined by the other employer or the pay equity committee established by that employer, as the case may be, under section 41 of the Act.

Marginal note:Determination of value of work

• 20 (1) An employer — or, if a pay equity committee has been established, that committee — must determine the value of the work performed in each predominantly female job class determined under section 35 of the Act and in each predominantly male job class chosen or created under subsection 19(1). The value of the work performed in those predominantly male job classes is to be determined as if the work were performed in the course of the operations of the employer.

• Marginal note:Value already determined

  (2) For greater certainty, an employer or a pay equity committee, as the case may be, may determine that the value of the work performed in each of the predominantly female job classes determined under section 35 of the Act is the value that has already been determined by means of a method that complies with the requirements set out in sections 21 and 22.

• Marginal note:Group of job classes

  (3) If an employer or a pay equity committee, as the case may be, treats a group of job classes as a predominantly female job class in accordance with section 38 of the Act, the value of the work performed in that job class is considered to be the value of the work performed in the individual predominantly female job class within the group that has the greatest number of employees.

Marginal note:Criterion

21 The criterion to be applied in determining the value of the work performed is the composite of the skill required to perform the work, the effort required to perform the work, the responsibility required in the performance of the work and the conditions under which the work is performed.

Marginal note:Method

22 In addition, an employer — or, if a pay equity committee has been established, that committee — must, to determine the value of the work performed, use a method that

• (a) does not discriminate on the basis of gender; and

• (b) makes it possible to determine the relative value of the work performed in all of the predominantly female job classes determined under section 35 of the Act and in all of the predominantly male job classes chosen or created under subsection 19(1).

Marginal note:Calculation of compensation

• 23 (1) The employer — or, if a pay equity committee has been established, that committee — must calculate the compensation, expressed in dollars per hour, associated with each job class for which it has determined, under section 20, the value of the work performed.

• Marginal note:Compensation plan — job classes chosen

  (2) If the employer or pay equity committee, as the case may be, uses predominantly male job classes chosen under paragraph 19(1)(a), it must make any adaptations necessary in the calculation of any form of compensation other than salary so that the compensation associated with those predominantly male job classes is in accordance with the compensation plan that applies to the employees of the employer.

• Marginal note:Compensation — job classes created

  (3) If the employer or pay equity committee, as the case may be, uses predominantly male job classes created under paragraph 19(1)(b), it must calculate the compensation for full-time work, expressed in dollars per hour, associated with each of those job classes

  • (a) taking into account

    • (i) the elements set out in columns 2 to 5 of Schedule 1 for the typical job class on which the job class that was created is based, and

    • (ii) salaries that are generally accepted as current for positions that have duties and responsibilities similar to those set out in Schedule 1 for the typical job class on which the job class that was created is based, that require experience, education and training similar to those set out in Schedule 1 for that typical job class and that are under employers that, to the extent possible, have similar numbers of employees as the employer and are in the same industry and geographic area as the employer or a geographic area where the cost of living is similar;

  • (b) ensuring that the hourly rate of pay for the job class is not less than

    • (i) in the case of a job class that was created based on the maintenance worker typical job class described in item 1 of Schedule 1, a wage at the minimum hourly rate referred to in section 178 of the Canada Labour Code, without taking into account subsections 178(4) and (5) of that Act, as if the employees in positions in that job class are usually employed in the province in which the employer’s employees are usually employed or, if the employer’s employees are usually employed in more than one province, as if the employees are employed in the province with the highest minimum hourly rate, amongst the provinces in which the employees are usually employed, referred to in subsection 178(2) of that Act,

    • (ii) in the case of a job class that was created based on the technician typical job class described in item 2 of Schedule 1, 1.2 times the minimum hourly rate referred to in subparagraph (i), and

    • (iii) in the case of a job class that was created based on the manager typical job class described in item 3 of Schedule 1, 1.75 times the minimum hourly rate referred to in subparagraph (i); and

  • (c) including all forms of compensation other than salary that the employer would pay for the work performed in the job class if the work were performed in the course of the operations of the employer.

• Marginal note:Group of job classes

  (4) If an employer or a pay equity committee, as the case may be, treats a group of job classes as a predominantly female job class in accordance with section 38 of the Act, the compensation associated with that job class is considered to be the compensation associated with the individual predominantly female job class within the group that has the greatest number of employees.

• Marginal note:Salary — job classes chosen

  (5) If an employer or pay equity committee, as the case may be, uses predominantly male job classes chosen under paragraph 19(1)(a),

  • (a) for the purpose of determining salary in the calculation of the compensation associated with a predominantly female job class, the salary at the highest rate in the range of salary rates for positions in the job class is to be used; and

  • (b) for the purpose of determining salary in the calculation of the compensation associated with a predominantly male job class, the salary at the highest rate in the range of salary rates for positions in the job class, provided by the employer from which the job class was chosen, is to be used.

• Marginal note:Salary — job classes created

  (6) If an employer or pay equity committee, as the case may be, uses predominantly male job classes created under paragraph 19(1)(b), for the purposes of determining salary in the calculation of the compensation associated with a predominantly female job class, the salary at the highest rate in the range of salary rates for positions in the job class is to be used.

• Marginal note:Definition of full-time work

  (7) For the purposes of subsection (3), full-time work means 30 or more hours of work over a period of one week.

Marginal note:Exclusions from compensation

24 An employer — or, if a pay equity committee has been established, that committee — may exclude from the calculation of compensation, with respect to each job class in respect of which compensation is required to be calculated, any form of compensation that is equally available, and provided without discrimination on the basis of gender, in respect of all of those job classes.

Marginal note:Differences in compensation excluded

25 An employer — or, if a pay equity committee has been established, that committee — must exclude from the calculation of compensation associated with a predominantly female job class any differences in compensation that either increase or decrease compensation in any or all positions in that job class as compared with the compensation that would otherwise be associated with the position, if the differences are based on any one or more of the following factors and those factors have been designed and are applied so as not to discriminate on the basis of gender:

• (a) the existence of a system of compensation that is based on seniority or length of service;

• (b) the practice of temporarily maintaining an employee’s compensation following their reclassification or demotion to a position that has a lower rate of compensation until the rate of compensation for the position is equivalent to or greater than the rate of compensation payable to the employee immediately before the reclassification or demotion;

• (c) a shortage of skilled workers that causes an employer to temporarily increase compensation due to its difficulty in recruiting or retaining employees with the requisite skills for positions in a job class;

• (d) the geographic area in which an employee works;

• (e) the fact that an employee is in an employee development or training program and receives compensation at a rate different than that of an employee doing the same work in a position outside the program;

• (f) the non-receipt of compensation — in the form of benefits that have a monetary value — due to the temporary, casual or seasonal nature of a position;

• (g) the existence of a merit-based compensation plan that is based on a system of formal performance ratings and that has been brought to the attention of the employees; or

• (h) the provision of compensation for extra-duty services, including compensation for overtime, shift work, being on call, being called back to work and working or travelling on a day that is not a working day.

Marginal note:Comparison of compensation

26 An employer — or, if a pay equity committee has been established, that committee — that has calculated under section 23 the compensation associated with each job class must, using the compensation so calculated, compare, in accordance with sections 27 to 29, the compensation associated with the predominantly female job classes with the compensation associated with the predominantly male job classes chosen or created under subsection 19(1), for the purpose of determining whether there is any difference in compensation between those job classes.

Marginal note:Compensation comparison methods

27 The comparison of compensation must be made in accordance with the equal average method set out in section 28 or the equal line method set out in section 29.

Marginal note:Equal average method

28 An employer or pay equity committee, as the case may be, that uses the equal average method of comparison of compensation must apply the following rules:

• (a) the average compensation associated with the predominantly female job classes within a band — or, if there is only one such job class within a band, the compensation associated with that job class — is to be compared to

  • (i) if there is more than one predominantly male job class chosen or created under subsection 19(1) within the band, the average compensation associated with those predominantly male job classes within the band,

  • (ii) if there is only one predominantly male job class chosen or created under subsection 19(1) within the band, the compensation associated with that job class, or

  • (iii) if there are no predominantly male job classes chosen or created under subsection 19(1) within the band, the compensation calculated under paragraph (b);

• (b) the compensation for the purpose of subparagraph (a)(iii) is

  • (i) the amount determined by the formula

    (A × B) ÷ C

    where

    A

    is the average compensation associated with the predominantly male job classes chosen or created under subsection 19(1) — or, if there is only one such job class, the compensation associated with that job class — that are within the band that is closest to the band within which the predominantly female job class or classes are located,

    B

    is the average value of the work performed in the predominantly female job classes within the band or, if there is only one such job class, the value of the work performed in that job class, and

    C

    is the average value of the work performed in the predominantly male job classes within the band referred to in the description of A or, if there is only one such job class, the value of the work performed in that job class, or

  • (ii) despite subparagraph (i), if there is at least one predominantly male job class chosen or created under subsection 19(1) within each of two bands that are equidistant from the band within which the predominantly female job class or classes are located and there is no other band containing at least one predominantly male job class that is closer to that band, the amount determined by the formula

    (A + B) ÷ 2

    where

    A

    is the average compensation associated with the predominantly male job classes chosen or created under subsection 19(1) within one of the two bands or, if there is only one such job class, the compensation associated with that job class, and

    B

    is the average compensation associated with the predominantly male job classes chosen or created under subsection 19(1) within the other band or, if there is only one such job class, the compensation associated with that job class;

• (c) the compensation associated with a predominantly female job class within a band is to be increased only if

  • (i) that compensation is lower than the compensation or average compensation referred to in subparagraph (a)(i), (ii) or (iii), as the case may be, and

  • (ii) the average compensation associated with the predominantly female job classes within the band — or, if there is only one such job class, the compensation associated with that job class — is lower than the compensation or average compensation referred to in subparagraph (a)(i), (ii) or (iii), as the case may be;

• (d) if the compensation associated with a predominantly female job class within a band is to be increased, the increase is to be determined by multiplying the factor calculated in accordance with section 11 by an amount equal to the difference between the compensation associated with the job class and the compensation or average compensation referred to in subparagraph (a)(i), (ii) or (iii), as the case may be; and

• (e) an increase in compensation associated with the predominantly female job class or classes within a band is to be made in such a way that, after the increase, the average compensation associated with the predominantly female job classes within the band — or, if there is only one such job class, the compensation associated with that job class — is equal to the compensation or average compensation referred to in subparagraph (a)(i), (ii) or (iii), as the case may be.

Marginal note:Equal line method

• 29 (1) An employer or pay equity committee, as the case may be, that uses the equal line method of comparison of compensation must apply the following rules:

  • (a) a female regression line must be established for the predominantly female job classes and a male regression line must be established for the predominantly male job classes chosen or created under subsection 19(1);

  • (b) the compensation associated with a predominantly female job class is to be increased only if

    • (i) the female regression line is entirely below the male regression line, and

    • (ii) the predominantly female job class is located below the male regression line;

  • (c) if the compensation associated with a predominantly female job class is to be increased, the increase is to be determined by multiplying the factor calculated in accordance with section 12 by an amount equal to the difference between the compensation associated with the predominantly female job class and the compensation associated with a predominantly male job class chosen or created under subsection 19(1), were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class; and

  • (d) an increase in compensation associated with the predominantly female job classes is to be made in such a way that, after the increase, the female regression line coincides with the male regression line.

• Marginal note:Crossed regression lines

  (2) Despite paragraphs (1)(b) to (d), if the female regression line crosses the male regression line, an employer or pay equity committee, as the case may be, must apply the equal average method set out in section 28 for the comparison of compensation.

Additional Information in Pay Equity Plan

Marginal note:Job classes chosen or created

30 If an employer — or, if a pay equity committee has been established, that committee — has determined under section 35 of the Act that there is no predominantly male job class, the pay equity plan must

• (a) indicate whether the predominantly male job classes used to determine differences in compensation were from another employer or were created by the employer based on a typical job class set out in Schedule 1 and, if job classes were chosen from another employer, indicate the job classes that were chosen and the other employer that provided the data;

• (b) if a group of job classes has been treated as a single predominantly female job class, identify the individual predominantly female job class within the group that was used for the purpose of subsections 20(3) and 23(4);

• (c) indicate any job classes in which differences in compensation have been excluded from the calculation of compensation under section 25 and give the reasons why; and

• (d) if a comparison of compensation was made to determine differences in compensation, indicate the method used to make the comparison.

Marginal note:Determination — value already determined

31 If an employer — or, if a pay equity committee has been established, that committee — makes the determination referred to in subsection 41(2) of the Act or subsection 20(2), the pay equity plan must include an indication to this effect.

32 [Repealed, SOR/2024-101, s. 6]

Posting

Marginal note:Draft pay equity plan

33 An employer that is required under section 52 or 53 of the Act to post a draft pay equity plan and a notice must post those documents on the same day and keep them posted for at least 60 days and, if they are posted in paper form, post them close together.

Marginal note:Final version of pay equity plan

34 An employer that is required, in accordance with subsection 55(1) or paragraph 57(2)(b) of the Act, to post the final version of the pay equity plan must keep that plan posted until it posts, in accordance with section 83 or paragraph 85(2)(b) of the Act, the final version of the revised pay equity plan as first updated.

Marginal note:Notice — increases and phase-in period

35 An employer that is required to post a notice under subsection 56(1) of the Act relating to increases or a notice under subsection 56(2) of the Act for a longer phase-in period must keep that notice posted until the later of the 60th day after the day on which it is posted and the day on which the increases to which the notice relates are paid in full.

Pay Equity Maintenance Review

Updated Pay Equity Plan

Marginal note:Notice — employer’s obligation

• 36 (1) An employer that is required to post a notice under subsection 65(1) or (2) of the Act must do so before the first day with respect to which workplace information must be collected under subsection 39(1) in respect of the update referred to in the notice.

• Marginal note:Duration of posting

  (2) The employer must keep the notice posted until it posts the final version of the revised pay equity plan in accordance with section 83 or paragraph 85(2)(b) of the Act or until it posts a notice under subsection 66(1) or (2) of the Act.

Marginal note:Notice — group of employers’ obligation

• 37 (1) An employer that is required to post a notice under subsection 66(1) or (2) of the Act must do so before the first day with respect to which workplace information must be collected under subsection 39(1) in respect of the update referred to in the notice.

• Marginal note:Duration of posting

  (2) The employer must keep the notice posted until it posts the final version of the revised pay equity plan in accordance with section 83 or paragraph 85(2)(b) of the Act or it posts a notice under subsection 65(1) or (2) of the Act.

Marginal note:Notice — update of plan without committee

• 38 (1) An employer that is required under section 73, 74, 76 or 77 of the Act to post a notice that the pay equity plan will be updated without a pay equity committee must do so within 60 days after the day on which the Pay Equity Commissioner authorizes the updating of the plan without a committee.

• Marginal note:Duration of posting

  (2) The employer must keep the notice posted until it posts the final version of the revised pay equity plan in accordance with section 83 or paragraph 85(2)(b) of the Act.

Process for Updating Pay Equity Plan

Marginal note:Choice of method — no predominantly male job classes

• 38.1 (1) An employer — or, if a pay equity committee has been established, that committee —, other than an employer or pay equity committee referred to in subsection 78(2) of the Act, that has determined that either there are no longer any predominantly male job classes or there continues to not be any predominantly male job classes, must use, to determine differences in compensation for the purposes of subsection 78(1) of the Act,

  • (a) at least three predominantly male job classes of its choice from another employer that meets the conditions set out in subsection 19(2); or

  • (b) three fictional predominantly male job classes, each of which is created by the employer or committee based on a different typical job class set out in Schedule 1.

• Marginal note:Criteria

  (2) An employer or pay equity committee, as the case may be, choosing job classes provided by another employer under paragraph (1)(a) must, to the extent possible, ensure that those job classes meet the criteria set out in paragraphs 19(3)(a) and (b).

• Marginal note:Clarification

  (3) For greater certainty, under subsection (1), an employer or pay equity committee, as the case may be, may use job classes other than those used to establish a pay equity plan and may use different job classes with respect to each date for which it must, under section 39, collect information to update that pay equity plan.

Marginal note:Workplace information

• 39 (1) For the purpose of identifying any differences in compensation under subsection 78(1) of the Act, an employer — or, if a pay equity committee has been established, that committee — must collect the following information:

  • (a) in the case of an employer referred to in any of paragraphs 3(2)(a) to (d) of the Act, for each March 31 during the period beginning on the day after the day on which the most recent pay equity plan was posted and ending on the day before the day on which the revised pay equity plan is posted under section 80 or 81 of the Act, information that represents its workplace as it was on that March 31 and that is necessary to identify changes — other than changes excluded in accordance with section 40 — that are likely to have had an impact on pay equity since the day on which the most recent pay equity plan was posted or the previous March 31 with respect to which information must be collected under this subsection, if that day is more recent; and

  • (b) in the case of an employer referred to in any of paragraphs 3(2)(e) to (i) of the Act, for each day on which the employer’s fiscal year ends during the period beginning on the day after the day on which the most recent pay equity plan was posted and ending on the day before the day on which the revised pay equity plan is posted under section 80 or 81 of the Act, information that represents its workplace as it was on the day on which the employer’s fiscal year ends and that is necessary to identify changes — other than changes excluded in accordance with section 40 — that are likely to have had an impact on pay equity since the day on which the most recent pay equity plan was posted or the previous day with respect to which information must be collected under this subsection, if that day is more recent.

• Marginal note:Other workplace information

  (1.1) If, for the purposes of updating a pay equity plan, an employer or pay equity committee referred to in subsection 38.1(1), as the case may be, is using job classes from another employer chosen under paragraph 38.1(1)(a), it must also collect the following information:

  • (a) in the case of an employer referred to in any of paragraphs 3(2)(a) to (d) of the Act, for each March 31 during the period beginning on the day after the day on which the most recent pay equity plan was posted and ending on the day before the day on which the revised pay equity plan is posted under section 80 or 81 of the Act, the information that represents the other employer’s workplace as it was on that March 31 and that is necessary to identify changes — other than changes excluded in accordance with section 40 — that are likely to have had an impact on pay equity since the day on which the most recent pay equity plan was posted or the previous March 31 with respect to which information must be collected under this subsection, if that day is more recent; and

  • (b) in the case of an employer referred to in any of paragraphs 3(2)(e) to (i) of the Act, for each day on which the employer’s fiscal year ends during the period beginning on the day after the day on which the most recent pay equity plan was posted and ending on the day before the day on which the revised pay equity plan is posted under section 80 or 81 of the Act, the information that represents the other employer’s workplace as it was on that day and that is necessary to identify changes — other than changes excluded in accordance with section 40 — that are likely to have had an impact on pay equity since the day on which the most recent pay equity plan was posted or the previous day with respect to which information must be collected under this subsection, if that day is more recent.

• Marginal note:Other last day

  (2) However, the last day with respect to which information must be collected before the posting of the final version of the revised pay equity plan in accordance with section 83 or paragraph 85(2)(b) of the Act may be a day selected by the employer or the pay equity committee, as the case may be, if the day that is selected is not more than one year before that version is posted and is before the day on which the revised pay equity plan must be posted under section 80 or 81 of the Act.

Marginal note:Excluded changes

40 For the purposes of subsection 78(1) of the Act, the following changes are excluded:

• (a) all changes that are likely to have an impact on the identification of job classes in accordance with sections 32 to 34 of the Act, other than changes that are likely to result in

  • (i) the creation or elimination of a job class that is predominantly female or predominantly male, or

  • (ii) the merger of a predominantly female or predominantly male job class with another job class;

• (b) all changes that are likely to impact the determination, in accordance with sections 35 to 38 of the Act, of whether a job class is predominantly female or predominantly male — or neither — other than

  • (i) the change of a predominantly male job class to a predominantly female job class,

  • (ii) the change of a predominantly female job class to a predominantly male job class,

  • (iii) the change of a job class that was neither predominantly female nor predominantly male to a job class that is either predominantly female or predominantly male, and

  • (iv) the change of a predominantly female or predominantly male job class to a job class that is neither predominantly male nor predominantly female;

• (c) in the case of a job class in the core public administration, all changes that are likely to have an impact on the value of work performed in the job class as that value is determined in accordance with sections 41 to 43 of the Act, other than any changes in the skill required to perform the work, in the effort required to perform the work, in the responsibility required in the performance of the work or in the conditions under which the work is performed

  • (i) that are significant,

  • (ii) that impact a substantial portion of the positions in the job class, and

  • (iii) whose impact on the job class is not temporary; and

• (d) any change in the compensation associated with a predominantly female or predominantly male job class if, on a percentage basis, the change equally affects the compensation associated with each of the predominantly female or predominantly male job classes.

Marginal note:Use of workplace information — first period

• 41 (1) Subject to subsection (3), the employer — or, if a pay equity committee has been established, that committee — must use the workplace information collected under section 39 with respect to the first day referred to in that section in respect of the pay equity plan being updated to identify, for the purposes of subsection 78(1) of the Act, any differences in compensation for the period beginning on the day on which the most recent pay equity plan was posted and ending on that first day.

• Marginal note:Use of workplace information — subsequent periods

  (2) Subject to subsection (3), for each subsequent day referred to in section 39 in respect of the pay equity plan being updated, the employer or pay equity committee, as the case may be, must use the workplace information collected under that section with respect to that subsequent day to identify, for the purposes of subsection 78(1) of the Act, any differences in compensation for the period beginning on the day after the previous day with respect to which information must be collected under section 39 and ending on that subsequent day.

• Marginal note:Retroactive salary rate change

  (3) If workplace information that is collected with respect to a day referred to in section 39 contains a salary rate that, after that day but before the posting of the final version of the revised pay equity plan, is changed with retroactive effect starting from that day or earlier, the employer or pay equity committee, as the case may be, must use the retroactive salary rate applicable to that day rather than the salary rate in the information that was collected or a salary rate calculated under section 45.

Marginal note:No predominantly male job classes

• 41.1 (1) For the purposes of subsection 78(1) of the Act, the rules, criteria and factors set out in sections 41 to 50 of the Act, as adapted by sections 20 to 29, must be used by the employer or pay equity committee referred to in subsection 38.1(1), with the following modifications:

  • (a) the reference to “subsection 19(1)” in subsection 20(1), paragraph 22(b), section 26, subparagraphs 28(a)(i) to (iii) and (b)(i) and (ii) and paragraphs 29(1)(a) and (c) is to be read as a reference to “subsection 38.1(1)”;

  • (b) the reference to “paragraph 19(1)(a)” in subsections 23(2) and (5) is to be read as a reference to “paragraph 38.1(1)(a)”;

  • (c) the reference to “paragraph 19(1)(b)” in subsections 23(3) and (6) is to be be read as a reference to “paragraph 38.1(1)(b)”; and

  • (d) the reference to “the individual predominantly female job class within the group that has the greatest number of employees” in subsections 20(3) and 23(4) is to be read, with respect to a period referred to in subsection 41(1) or (2), as the individual predominantly female job class within the group that has the greatest number of employees on the day with respect to which the workplace information that is used, for that period was collected under section 39 if, when the employer or pay equity committee, as the case may be, is using that information, it treats the group of job classes as a predominantly female job class in accordance with section 38 of the Act.

• Marginal note:Factor referred to in paragraph 28(d)

  (2) Despite subsection 11(2), in the calculation of the factor referred to in paragraph 28(d), for the purposes of updating a pay equity plan, references in subsection 11(1) to a predominantly male job class are to be read as references to a predominantly male job class chosen or created, as the case may be, under subsection 38.1(1).

• Marginal note:Factor referred to in paragraph 29(1)(c)

  (3) Despite subsection 12(2), in the calculation of the factor referred to in paragraph 29(1)(c), for the purposes of updating a pay equity plan, a reference in subsection 12(1) to a predominantly male job class is to be read as a reference to a predominantly male job class chosen or created, as the case may be, under subsection 38.1(1).

Marginal note:Job classes not treated as part of group

42 If an employer — or, if a pay equity committee has been established, that committee — treated a group of job classes as a single predominantly female job class in its most recent pay equity plan and if workplace information collected under section 39 indicates that any of the following has occurred in a period set out in subsection 41(1) or (2), then for the purposes of subsection 78(1) of the Act, that employer or committee, as the case may be, may not continue to treat those job classes as a group in accordance with section 38 of the Act for that period or for any subsequent period until the posting of the final version of the updated pay equity plan:

• (a) less than 60% of the positions in the group are occupied by women;

• (b) a job class has been created since the most recent posting of the pay equity plan and added to the group; or

• (c) a job class within the group has been combined with another job class within or outside the group.

Marginal note:Group of job classes — number of employees

43 For the purposes of subsection 78(1) of the Act, with respect to a period referred to in subsection 41(1) or (2) of these Regulations, the rules under subsections 41(3) and 44(2) of the Act apply as if the reference in those subsections to “the individual predominantly female job class within the group that has the greatest number of employees” were a reference to the predominantly female job class within the group of job classes that had the greatest number of employees on the day with respect to which the workplace information that is used for that period was collected under section 39 if, when the employer — or, if a pay equity committee has been established, that committee — is using this information, it treats the group of job classes as a single predominantly female job class in accordance with section 38 of the Act.

Marginal note:Calculation of compensation

• 44 (1) For the purpose of identifying any differences in compensation under subsection 78(1) of the Act, the employer — or, if a pay equity committee has been established, that committee — must calculate compensation associated with predominantly female job classes and predominantly male job classes in accordance with the rules set out in sections 44 to 46 of the Act for each period for which the workplace information that has been collected must be used under section 41.

• Marginal note:Exception

  (1.1) Despite subsection (1), for the purposes of identifying any differences in compensation under subsection 78(1) of the Act, an employer or pay equity committee, as the case may be, referred to in subsection 38.1(1) of the Regulations, must calculate compensation associated with predominantly male job classes in accordance with the rules set out in sections 23 to 25 for each period for which the workplace information that has been collected must be used under section 41, except that the reference to “paragraph 19(1)(a)” in subsections 23(2) and (5) is to be read as a reference to “paragraph 38.1(1)(a)” and the reference to “paragraph 19(1)(b)” in subsections 23(3) and (6) is to be read as a reference to “paragraph 38.1(1)(b)”.

• Marginal note:Phase-in of increases

  (2) If an increase in compensation associated with a predominantly female job class is being phased in under subsection 61(2), 62(4) or 63(2) of the Act, then for the purposes of subsection 78(1) of the Act, the employer or pay equity committee, as the case may be, must calculate the compensation associated with the job class for each period set out in subsection 41(1) or (2) as if the increase had been made without being phased in.

Marginal note:Prohibited comparison — frozen compensation

• 45 (1) For the purposes of subsection 78(1) of the Act, in carrying out the comparison of compensation using the rules and factors set out in sections 47 to 50 of the Act, an employer — or, if a pay equity committee has been established, that committee — must ensure that, for each period set out in subsection 41(1) or (2), no comparison is made between frozen compensation associated with a predominantly female or predominantly male job class and compensation that is not frozen and that is associated with a predominantly female or predominantly male job class in which unionized employees occupy positions, unless the salary rate that is used to determine salary in the calculation of the frozen compensation associated with a job class is

  • (a) the salary rate obtained by adding, to the highest salary rate in the range of salary rates for positions in the job class, the product obtained by multiplying

    • (i) the salary at the highest rate in the range of salary rates for positions in the job class

    by

    • (ii) the average percentage by which, since the compensation associated with the job class became frozen, the salary for positions in job classes that contain positions occupied by unionized employees to whom the pay equity plan applies and who are governed by a collective agreement that is not expired has increased; or

  • (b) if a pay equity committee has been established, the salary rate determined using a method other than the one set out in paragraph (a) that minimizes, to the extent possible, the differences in compensation that result only from the compensation associated with a job class being frozen.

• Marginal note:Exception

  (2) Subsection (1) does not apply with respect to an employer or pay equity committee referred to in subsection 38.1(1).

Marginal note:Difference in compensation during last period

46 For the period beginning on the day after the last day with respect to which workplace information must be collected under section 39 before the posting of the final version of a revised pay equity plan in accordance with section 83 or paragraph 85(2)(b) of the Act and ending on the day before the day of that posting, any difference in compensation is the same as the difference that the employer or pay equity committee, as the case may be, identified for the preceding period.

Supplementary Information to Include in Pay Equity Plan

Marginal note:No predominantly male job class

46.1 If, in carrying out the update of the pay equity plan, the employer — or, if a pay equity committee has been established, that committee — has determined in accordance with section 35 of the Act that there is no predominantly male job class, it must revise the information included in the plan under sections 30 and 31 of these Regulations or, if the plan to be revised does not include that information, add it to the plan.

Posting

Marginal note:Postings regarding updating

47 An employer that is required to post documents under section 80 or 81 of the Act must keep those documents posted for at least 60 days.

Marginal note:Final version of revised pay equity plan

48 An employer that is required, in accordance with section 83 or paragraph 85(2)(b) of the Act, to post the final version of the revised pay equity plan and of the document referred to in subsection 79(2) of the Act must keep them posted until it posts the final version of the subsequent revised pay equity plan under that section or paragraph.

Marginal note:Notice — increases

49 An employer that is required under section 84 of the Act to post a notice relating to increases must keep the notice posted until the later of the 60th day after the day it is posted and the day on which the increases to which the notice relates are paid in full.

Marginal note:Determination by member or panel

50 If the member or panel conducting an inquiry into a question of law or jurisdiction that has been referred to the Chairperson of the Tribunal under section 162 of the Act requires, under subsection 167(2) of the Act, an employer to post the determination issued at the conclusion of the inquiry into the question, the employer must keep the determination posted for the period specified by the member or panel, as the case may be.

Marginal note:Decision or document issued by Pay Equity Commissioner

51 If the Pay Equity Commissioner requires, under section 176 of the Act, an employer to post any decision, order, notice of violation or other document issued by that Commissioner, the employer must keep that decision, order, notice of violation or other document, as the case may be, posted for the period specified by the Commissioner.

Lump Sum

Marginal note:Entitlement

• 52 (1) For the purposes of subsection 88(2) of the Act, an employee referred to in subsection 88(1) of the Act is entitled to a lump sum in respect of each period set out in subsection 41(1) or (2) or section 46 in which a difference in compensation is identified between the predominantly female job classes and the predominantly male job classes and that falls within the maximum period described in subsection 88(2) of the Act.

• Marginal note:Amount

  (2) The amount of the lump sum to which the employee is entitled in respect of a period set out in subsection 41(1) or (2) or section 46 is the product obtained by multiplying the amount of the increase in compensation that was calculated with respect to the period for the job class in which the employee occupied a position by the number of hours the employee worked in the period.

Confidentiality

Marginal note:Data received from another employer

• 52.1 (1) Except to identify differences in compensation for the purposes of sections 60 or 78 of the Act and to comply with sections 30 or 46.1 of these Regulations, an employer and each member of a pay equity committee that is, directly or indirectly, provided with data from another employer for the purpose of the identification of those differences must keep that data confidential.

• Marginal note:Bargaining agent

  (2) A bargaining agent that receives from a member of a pay equity committee data that the member is required under subsection (1) to keep confidential must also keep the data confidential.

Annual Statement

Marginal note:Employer

• 53 (1) For the purposes of paragraph 89(1)(h) of the Act, the following information is prescribed:

  • (a) if the employer — or, if a pay equity committee has been established, that committee — has made the determination referred to in subsection 41(2) of the Act, an indication to that effect;

  • (b) if the employer — or, if a pay equity committee has been established, that committee — has made the determination referred to in subsection 20(2), an indication to that effect; and

  • (c) for each job class referred to in paragraph 89(1)(f) of the Act, if that paragraph applies,

    • (i) the amount, in dollars per hour, of the increase in the hourly rate of pay and the date on which that increase is payable or, if the employer has chosen to phase in that increase, the amount of each increase, in dollars per hour, and the dates on which each increase will be made,

    • (ii) the number of women who occupy a position in that job class and who are entitled to the increase referred to in subparagraph (i), and

    • (iii) the total number of employees who occupy a position in that job class;

  • (d) the employer’s legal name, if different than the name submitted under paragraph 89(1)(a) of the Act;

  • (e) if the employer has a business number, as defined in subsection 248(1) of the Income Tax Act, that number; and

  • (f) the name, telephone number and email address of a senior official of the employer to whom questions may be directed respecting the pay equity plans the employer must establish.

• Marginal note:Group of employers

  (2) For the purposes of paragraph 89(2)(h) of the Act, the other information that is prescribed is the following:

  • (a) if the group of employers — or, if a pay equity committee has been established, that committee — has made the determination referred to in subsection 41(2) of the Act, an indication to that effect;

  • (b) if the group of employers — or, if a pay equity committee has been established, that committee — has made the determination referred to in subsection 20(2), an indication to that effect; and

  • (c) for each job class referred to in paragraph 89(2)(f) of the Act, if that paragraph applies,

    • (i) the amount, in dollars per hour, of the increase in the hourly rate of pay and the date on which that increase is payable, or if the employer has chosen to phase in that increase, the amount of each increase, in dollars per hour, and the dates on which each increase will be made,

    • (ii) the number of women who occupy a position in that job class and who are entitled to the increase referred to in subparagraph (i), and

    • (iii) the total number of employees who occupy a position in that job class;

  • (d) the legal name of each employer in the group whose legal name is different than the name submitted under paragraph 89(2)(a) of the Act;

  • (e) for each employer in the group that has a business number, as defined in subsection 248(1) of the Income Tax Act, that number; and

  • (f) for each employer in the group, the name, telephone number and email address of a senior official of the employer to whom questions may be directed respecting the pay equity plans the group must establish.

Transfers

Marginal note:Final version of pay equity plan

54 An employer that is required, in accordance with paragraph 94(1)(b) of the Act, to post the final version of the pay equity plan must keep it posted until it posts the final version of the revised pay equity plan in accordance with section 83 or paragraph 85(2)(b) of the Act.

Administrative Monetary Penalties

Violations

Marginal note:Designations

55 The following are designated as violations that may be proceeded with in accordance with Part 7 of the Act:

• (a) the contravention of any provision of the Act that is specified in column 1 of Part 1 of Schedule 2;

• (b) the contravention of any order made or issued under any provision of the Act that is specified in column 1 of Part 2 of Schedule 2; and

• (c) the contravention of any provision of these Regulations that is specified in column 1 of Part 3 of Schedule 2.

Marginal note:Classification

56 A violation related to a provision set out in column 1 of Part 1 or 3 of Schedule 2 or an order made or issued under a provision set out in column 1 of Part 2 of Schedule 2 is classified as a minor, serious or very serious violation as set out in column 2 of that Part.

Marginal note:Range — 10 to 99 employees

• 57 (1) The range of penalties in respect of a violation within a classification set out in column 1 of Part 1 of Schedule 3 is set out in column 2 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation, with respect to a violation committed by

  • (a) an employer referred to in subparagraph 127(2)(a)(i) of the Act;

  • (b) an employer referred to in subparagraph 127(2)(a)(ii) of the Act that has 10 or more employees at the time the notice of violation is served;

  • (c) a group of employers for which the sum of the average of the number of employees of each of the employers in the group is at least 10 but less than 100; or

  • (d) a bargaining agent representing some or all of the unionized employees of an employer referred to in paragraph (a) or (b) or of an employer that is in a group of employers referred to in paragraph (c).

• Marginal note:Sum of the averages

  (2) For the purposes of paragraph (1)(c)

  • (a) if the employers in the group have posted one or more notices under subsection 66(1) or 66(2) of the Act at the time the notice of violation is served, the sum of the average is the one described in paragraph 71(b) of the Act; or

  • (b) in any other case, the average is the one described in paragraph 9(a) or (b) of the Act that was used to determine the date on which the employer became subject to the Act, for each employer in the group of employers.

• Marginal note:Range — 100 to 499 employees

  (3) The range of penalties in respect of a violation within a classification set out in column 1 of Part 2 of Schedule 3 is set out in column 2 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation, with respect to a violation committed by

  • (a) an employer referred to in paragraph 127(2)(c) of the Act whose average number of employees is at least 100 but less than 500;

  • (b) a group of employers for which the sum of the average of the number of employees of each of the employers in the group is at least 100 but less than 500; or

  • (c) a bargaining agent representing some or all of the unionized employees of an employer referred to in paragraph (a) or of an employer that is in a group of employers referred to in paragraph (b).

• Marginal note:Range — 500 employees or more

  (4) The range of penalties in respect of a violation within a classification set out in column 1 of Part 3 of Schedule 3 is set out in column 2 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation with, respect to a violation committed by

  • (a) an employer referred to in paragraph 127(2)(c) of the Act whose average number of employees is 500 or more;

  • (b) a group of employers for which the sum of the average of the number of employees of each of the employers in the group is 500 or more; or

  • (c) a bargaining agent representing some or all of the unionized employees of an employer referred to in paragraph (a) or of an employer that is in a group of employers referred to in paragraph (b).

• Marginal note:Average

  (5) For the purposes of paragraphs (3)(a) and (4)(a) the average is

  • (a) if the employer has posted one or more notices under subsection 65(1) of the Act at the time the notice of violation is served, the average described in paragraph 69(a) or 70(a) of the Act, as the case may be, in respect of the most recently posted notice; or

  • (b) in any other case, the average described in paragraph 8(b) or 9(b) of the Act that was used to determine the date on which the employer became subject to the Act.

• Marginal note:Sum of the averages

  (6) For the purposes of paragraphs (3)(b) and (4)(b)

  • (a) if the employers in a group of employers have posted one or more notices under subsection 66(1) of the Act at the time the notice of violation is served, the sum of the average is the one described in paragraph 71(a) of the Act; or

  • (b) in any other case, the average is the one described in paragraph 9(a) or (b) of the Act that was used to determine the date on which the employer became subject to the Act, for each employer in the group of employers.

• Marginal note:Prior violations

  (7) For the purposes of subsections (1), (3) and (4), only prior violations that the employer, group of employers or bargaining agent, as the case may be, is deemed or determined to have committed during the 10 years before the day on which the notice of violation is served and that are of the same classification are taken into account.

Marginal note:Range — person referred to in section 130 of the Act

• 58 (1) The range of penalties in respect of a violation referred to in section 130 of the Act within a classification set out in column 1 of Part 1 of Schedule 3 that is committed by a person referred to in any of the paragraphs of that section is set out in column 2 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation.

• Marginal note:Range — employee, agent or mandatary

  (2) The range of penalties in respect of a violation of subsection 23(2) or 24(1) or section 99, 100, 101, 102, 103 or 124 of the Act or subsection 52.1(1) of these Regulations or an order made or issued under section 119 or 170 of the Act within a classification set out in column 1 of a Part of Schedule 3 that is committed by an employer’s or bargaining agent’s employee, agent or mandatary in the course of their employment or the scope of their authority as agent or mandatary is

  • (a) set out in column 2 of Part 1 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation, if the employer is referred to in paragraph 57(1)(a) or (b) or is in the group of employers referred to in paragraph 57(1)(c) or the bargaining agent is referred to in paragraph 57(1)(d), as case the may be;

  • (b) set out in column 2 of Part 2 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation, if the employer is referred to in paragraph 57(3)(a) or is in the group of employers referred to in paragraph 57(3)(b) or the bargaining agent is referred to in paragraph 57(3)(c), as the case may be; and

  • (c) set out in column 2 of Part 3 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation, if the employer is referred to in paragraph 57(4)(a) or is in the group of employers referred to in paragraph 57(4)(b) or the bargaining agent is referred to in paragraph 57(4)(c), as the case may be.

• Marginal note:Range — other person

  (3) The range of penalties in respect of a violation of subsection 24(1) or section 99, 100, 101 or 124 of the Act or subsection 52.1(1) of these Regulations, within a classification set out in column 1 of Part 1 of Schedule 3 that is committed by a person who is not referred to in subsection (2) or in section 130 of the Act and who is not an employer, a group of employers or a bargaining agent, is set out in column 2 for a first violation, in column 3 for a second violation and in column 4 for a third or subsequent violation.

• Marginal note:Prior violations

  (4) For the purposes of subsections (1) to (3), only prior violations that the person is deemed or determined to have committed during the 10 years before the day on which the notice of violation is served and that are of the same classification are taken into account.

Marginal note:Determination of penalty amount

• 59 (1) The amount of the penalty is determined by the formula

  ((A – B) × C ÷ 20) + B

  where

  A

  is the maximum amount in the applicable penalty range of penalties set out in column 2, 3 or 4, as the case may be, of the applicable Part of Schedule 3;

  B

  is the minimum amount in the applicable range of penalties set out in column 2, 3 or 4, as the case may be, of the applicable Part of Schedule 3; and

  C

  is the gravity value.

• Marginal note:Gravity value

  (2) Subject to subsection (3), for the purpose of subsection (1), the gravity value is the sum of the values from the gravity scale set out in column 2 of the table to this subsection that are ascribed to each of the applicable criteria set out in column 1. A lower or negative gravity value reflects a mitigating factor and a higher or positive gravity value reflects an aggravating factor.

  	Column 1	Column 2
  Item	Criteria	Gravity Scale
  1	The degree of negligence of the employer, group of employers, bargaining agent or other person	0 to 4
  2	The degree to which the employer, group of employers, bargaining agent or other person might derive strategic or economic advantage from a continuing violation	0 to 4
  3	The degree to which the employer, group of employers, bargaining agent or other person demonstrated disregard for the authority of the Pay Equity Commissioner	0 to 4
  4	The manner in which the violation came to the Pay Equity Commissioner’s attention	- 2 to 4
  5	The steps taken by the employer, group of employers, bargaining agent or other person to mitigate or reverse the harm done by the violation	- 2 to 4

• Marginal note:Zero gravity value

  (3) If the gravity value would, but for this subsection, be a negative amount, it is deemed to be zero.

Service Authorized or Required Under Part 7 of Act

Marginal note:Service — employer or bargaining agent

60 A document that is required or authorized to be served under Part 7 of the Act on an employer or bargaining agent may be served by

• (a) leaving a copy of it at the employer’s or bargaining agent’s head office or place of business with its agent or mandatary or with an officer or other individual who appears to manage or be in control of the head office or place of business;

• (b) sending a copy of it by registered mail or courier to the head office or place of business of the employer or bargaining agent or its agent or mandatary; or

• (c) sending a copy of it by fax, email or other electronic means to anyone referred to in paragraph (a), and then sending a copy of it by registered mail or courier, in the manner set out in paragraph (b), within 48 hours after the time of the original transmission.

Marginal note:Service — person

61 A document required or authorized to be served under Part 7 of the Act on a person, other than an employer or bargaining agent, may be served

• (a) personally, by leaving a copy of it with the person at any place or, if it is not feasible to find the person, with someone who appears to be an adult member of the same household at the person’s last known address or usual place of residence;

• (b) by sending a copy of it by registered mail or courier to the person’s last known address or usual place of residence; or

• (c) by sending a copy of it to the person by fax, email or other electronic means, and then sending a copy of it by registered mail or courier, in the manner set out in paragraph (b), within 48 hours after the time of the original transmission.

Marginal note:Substitutional service

62 If a document that is required or authorized to be served under Part 7 of the Act cannot reasonably be served in accordance with section 60 or 61, as applicable, it may be served by leaving a copy of it at the employer’s, bargaining agent’s or other person’s last known address or place of business or, in the case of an individual, at the individual’s usual place of residence or workplace.

Marginal note:Proof of service

63 Service referred to in sections 60 and 61 may be proved by

• (a) an acknowledgement of service signed by or on behalf of the employer, bargaining agent or other person served, specifying the date and location of service; or

• (b) a certificate of service signed by the person who effected the service, stating that service was made on the employer, bargaining agent or other person named in the certificate and indicating the means by which and day on which service was effected.

Marginal note:Date of service

64 A document that is required or authorized to be served under Part 7 of the Act is deemed to be served on

• (a) in the case of service made in accordance with paragraph 60(a) or 61(a), the earlier of the day on which the acknowledgment of service is signed by or on behalf of the employer, bargaining agent or other person served and the day on which the certificate of service is signed by the person who effected service; and

• (b) in the case of service made in accordance with paragraph 60(b) or (c) or 61(b) or (c), the earlier of

  • (i) the day on which the acknowledgment of service is signed by or on behalf of the employer, bargaining agent or other person served,

  • (ii) the day on which the certificate of service is signed by the person who effected service, and

  • (iii) the 10th day after the date indicated on the receipt issued by the post office or courier.

Request for Review

Marginal note:Manner

65 A request for review under section 139 of the Act must be made in writing by the party named in the notice of violation or by that party’s authorized representative.

Publication of Information

Marginal note:Other information

66 The following information is prescribed for the purposes of paragraph 146(d) of the Act with respect to an employer, a group of employers or a bargaining agent that is determined under section 142 of the Act, or that is deemed by the Act, to have committed a violation:

• (a) the city, town or other locality and the province where the employer, each employer in a group of employers or the bargaining agent is located;

• (b) in the case of a violation resulting from non-compliance with an order made or issued under the Act, the nature of the order;

• (c) the date on which the period to file a request for review elapsed or, if a request for review was filed during that period, the date on which the decision was rendered;

• (d) whether the employer, group of employers or bargaining agent has complied with the provision or order, the non-compliance of which gave rise to the violation, and, if applicable, the date of that compliance;

• (e) whether the employer, group of employers or bargaining agent has taken measures to counteract any consequences of the violation;

• (f) whether the employer, group of employers or bargaining agent has paid the penalty set out in the notice of violation and, if so, the date on which the amount was paid; and

• (g) whether, under section 144 of the Act, a certificate of default of payment has been issued and whether that certificate has been registered with the Federal Court.