Pay Equity Regulations (SOR/2021-161)

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.