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ARTICLE · 09 DECEMBER 2020

Proactive Pay Equity Closer Than Ever For Federally Regulated Employers: Regulations Released For Stakeholder Comment

Proactive pay equity should now be on the radars of most federally regulated employers. Recently, the Government of Canada published the proposed regulations...

CanadaFinance and Banking

Proactive pay equity should now be on the radars of most federally regulated employers. Recently, the Government of Canada published the proposed regulations required to bring the federal Pay Equity Act (PEA) into force. When finalized, they will provide key details on how employers must meet their soon-to-be onerous obligations under the PEA.  Stakeholders, including employers, employees and bargaining agents, may provide feedback on the proposed regulations until January 13, 2021.

The PEA establishes a proactive pay equity regime for federally regulated employers with 10 or more employees in both the public and private sectors. It will require these employers to carefully examine their compensation practices in prescribed ways to achieve pay equity. For federally regulated employers with fewer than 10 employees, the current complaint-based regime under section 11 of the Canadian Human Rights Act will continue to apply. 

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