Human Resources and Skills Development Canada
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Pay Equity

Eliminating Wage Discrimination

Pay equity standards ensure decent and fair wages for men and women doing work of equal value within the same establishment. Eliminating discrimination related to undervaluing work done by men and women helps create a motivated and innovative workforce, which is essential in a prosperous 21st century economy.

A Primer on Pay Equity

Human Resources and Skills Development Canada’s Labour Program is mandated to assist the Canadian Human Rights Commission in enforcing the pay equity requirements of the Canadian Human Rights Act and to undertake compliance monitoring as established in Part III of the Canada Labour Code.

These requirements apply to workplaces within the federal jurisdiction. This includes some of Canada’s major infrastructure sectors, such as interprovincial and international transportation (air, rail, ports and trucking), communications, banking and Crown corporations.

A Few Definitions

Work of equal value refers to different jobs in an establishment that have the same value to the employer. Value is assessed in terms of skill, effort, responsibility and working conditions, criteria laid out in the Canadian Human Rights Act.

An establishment refers to all employees, from all geographical locations, unionized or not, who are subject to a common personnel and wage policy.

Implementing Pay Equity

Step 1 – Determine if gender-based wage discrimination exists

An evaluation tool will help an employer compare job values based on the four criteria: skill, effort, responsibility and working conditions across jobs. All forms of compensation are included in this comparison--salary, benefits, perks, indirect and variable pay, etc. Involving unions and employees in the process is highly advisable.

Step 2 – Eliminate any gender-based wage gap

Once the evaluation is complete, the employer must determine if the gaps identified are due to allowable factors listed in the Equal Wages Guidelines, such as differences in performance ratings, seniority, reclassification or downgrading of a position and regional rates of pay. If gaps are not due to these allowable factors, compensation practices need to be reviewed to determine how to close those gaps.

Step 3 – Once gaps are eliminated, maintain pay equity over time

Employers need to review and adjust compensation practices over time, to ensure the continuation of gender-neutral practices.

Monitoring Compliance

Labour Program inspectors provide support to employers during visits to ensure that they understand their legal obligations. The Labour Program has the authority to notify the Canadian Human Rights Commission when there are reasonable grounds to believe that an employer is involved in gender-based wage discrimination and is not taking steps to implement pay equity in the establishment.

Specialized Mediation Help

Upon request, specialized mediation services are available to employers and unions during collective bargaining. Professional third-party mediators are available to assist unions and employers in resolving their pay equity issues in the workplace.

Pay equity is a fundamental human right. The goal of pay equity standards are to help achieve fairness in the workplace by ensuring that women and men are paid equal wages for work of equal value.

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Date Modified:
2011-10-04