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Canada Flag Canada Pay Equity Act Compliance Guide

Preparing Data for Pay Equity Reporting in Canada​

This comprehensive guide provides step-by-step guidance on preparing and reporting data in compliance with Canada's Pay Equity Act, based on the guidelines provided by the Government of Canada.

For comprehensive guidance, refer to the Government of Canada's official resource: Pay Equity

Who Needs to Report: Canadian Pay Equity Act Requirements​

The Pay Equity Act, which came into force on August 31, 2021, applies to federally regulated employers with 10 or more employees. This includes:

  • Federally regulated private and public-sector employers
  • Parliamentary workplaces
  • The Prime Minister's and Ministers' offices

Employers with fewer than 10 employees are not subject to the Act.

Canadian Pay Equity Act Reporting Deadlines​

Employers are required to develop a pay equity plan within three years of becoming subject to the Act. For organizations subject to the Act as of its commencement on August 31, 2021, the deadline to post their initial pay equity plan is August 31, 2024. Employers must then update and revise their pay equity plans at least once every five years to ensure ongoing compliance.

What to Report: 6 Key Pay Equity Plan Components​

Employers must develop a pay equity plan that includes:

  1. Identification of Job Classes: Listing all job classes within the organization
  2. Determination of Gender Predominance: Classifying each job class as predominantly female, predominantly male, or neutral
  3. Evaluation of Job Value: Assessing the value of work performed in each job class based on skill, effort, responsibility, and working conditions
  4. Calculation of Compensation: Determining the total compensation for each job class, including wages and other benefits
  5. Comparison of Compensation: Comparing compensation between female and male job classes performing work of equal value to identify any pay gaps
  6. Action Plan to Address Pay Gaps: Outlining steps to eliminate any identified pay gaps, including timelines and responsible parties

The plan must be posted in a prominent location accessible to all employees, and employees must be notified of its availability.

How to Report: Canadian Pay Equity Act Submission Process​

Employers must:

  1. Establish a Pay Equity Committee: For workplaces with 100 or more employees, or those with 10 to 99 employees where some employees are unionized, a pay equity committee must be established. This committee should include representatives from the employer, employees, and, if applicable, unions
  2. Develop the Pay Equity Plan: Follow the steps outlined above to create the plan in collaboration with the pay equity committee
  3. Post the Pay Equity Plan: Ensure the completed plan is accessible to all employees and inform them of its availability
  4. Maintain Records: Keep records related to the pay equity plan and its implementation for at least six years

Penalties for Non-Compliance with Canadian Pay Equity Act​

The Pay Equity Commissioner has the authority to enforce compliance with the Act. Employers who fail to meet their obligations may face:

  • Administrative Monetary Penalties (AMPs): Penalties can be up to $30,000 for employers with 10 to 99 employees, and up to $50,000 for employers with 100 or more employees

  • Compliance Orders: Directives to take specific actions to achieve compliance

  • Public Naming: Non-compliant employers may be publicly identified

Frequently Asked Questions (FAQ)​

What is the Canadian Pay Equity Act deadline?​

The initial pay equity plan deadline is August 31, 2024 for organizations subject to the Act since August 31, 2021.

Do I need to report if I have 8 employees?​

No, the threshold is 10 employees. Federally regulated employers with fewer than 10 employees are not subject to the Act.

What happens if I miss the August 31, 2024 deadline?​

Non-compliance can result in penalties up to $30,000 (10–99 employees) or $50,000 (100+ employees), plus compliance orders and public naming.

Is a Pay Equity Committee mandatory?​

Yes, for workplaces with 100+ employees or 10-99 employees with unionized workers, a committee must be established.

How often do I need to update my pay equity plan?​

Plans must be updated and revised at least once every five years to ensure ongoing compliance.

Where do I post my Canadian pay equity plan?​

The plan must be posted in a prominent location accessible to all employees, with notification of availability.

For detailed information and updates, refer to the Government of Canada's official guidance: Pay Equity

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