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ARTICLE · 16 FEBRUARY 2014

Compensation Adjustments: When Lack Of Retroactivity Constitutes Gender Discrimination

Norton Rose Fulbright Canada LLP
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The provisions of the Quebec "Pay Equity Act" relating to pay equity audits were struck down by the Quebec Superior Court on January 22, 2014.

CanadaEmployment and HR
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright Canada LLP
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The provisions of the Quebec Pay Equity Act relating to pay equity audits were struck down by the Quebec Superior Court on January 22, 2014 on the ground that lack of retroactivity in compensation adjustments is an infringement of the Charters.1

The impugned legislation

The Quebec Pay Equity Act requires any public or private sector employer who has an average of ten or more employees in the course of a given year to have a pay equity plan.

In 2006, ten years after the adoption of the Act, the Minister of Labour tabled in the National Assembly a report prepared by the Commission de l'équité salariale (CES) in which the CES noted that barely half of employers had set up a pay equity plan and that 38% of the 53% of delinquent employers had not even started the process.

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