On August 31, 2021 the federal government’s Pay Equity Act takes effect. The model for the act is based on a complaint process under the Canadian Human Rights Act. Once a complaint is filed it is up to the employer to prove that compensation is equitable.
Employers who have 100 plus employees, as well as employers who have between 10 and 99 employees where some are unionized are required to establish a protocol in the form of a Pay Equity Committee that provides oversight to ensure equitable compensation is in place.
The Pay Equity Committee is responsible for developing and implementing a plan for pay equity. Employers have 60 days from the date the Act takes effect to establish the committee. Further to that the employer has three years to develop and implement a pay equity process.
The steps to establish a Pay Equity Committee and plan for the same are detailed and somewhat complex. Further details of the requirements may be found under the government of Canada Employment and Social Development website.
What steps has your company taken to ensure pay equity?
Marie-Helene Sakowski, Transformational Consultant, info@effectiveplacement.com
