Pay Equity Laws in Canada

Canada has 14 distinct legal jurisdictions that govern the employment relationship, including the management of pay equity. Depending on the nature of your business, your requirements as an employer may be governed by federal or provincial/territorial pay equity laws. The majority of pay equity laws apply to the public sector, and we have highlighted some of the key pay equity laws for private employers with more than 10 employees in Ontario and Quebec.

Pay equity may also be part of a discrimination complaint under human rights laws and is a complex subject. We’re here to help with some key best practices and overviews.

Federal

In Canada, about 6% of employers are federally regulated. These businesses include international and interprovincial businesses such as trucking and shipping, as well as banks, telecommunications and a number of others. Federally regulated employers with 10 employees or more may be subject to pay equity laws. The laws relating to pay equity apply to these federal businesses, even if they are scattered throughout each province or territory in Canada.

The federal Pay Equity Act (the “Act”) came into effect on August 31, 2021. The Act intends to address systemic gender discrimination in compensation practices and pay systems in federally regulated workplaces. Under the Act, employers must post a Pay Equity Plan within 3 years of becoming subject to the Act.

Provinces and Territories

A number of jurisdictions, including Ontario and Quebec have pay equity regimes for non-federally regulated employers, while other provinces and territories address the right to equal pay through human rights and/or employment standards legislation.

Private employers with 10 or more employees in Ontario and Quebec will need to pay particular attention to the pay equity laws in those provinces.

Please visit the resources below to find information relating to the laws impacting pay equity in Ontario and Quebec.