Under this regime, employers have to proactively examine their compensation practices. This is to ensure that they are providing equal pay to men and women doing work of equal value.
The central feature of the Act is that it requires employers to establish and periodically update a pay equity plan. In developing a plan, employers must:
Employers have to establish their pay equity plan within 3 years of becoming subject to the Act. Once the plan is established, they will have to increase the compensation of any predominantly female job classes that are receiving less pay than their male counterparts. Some employers may be eligible to phase-in those increases over 3 to 5 years. In addition, they will have to update their plan every 5 years to ensure the following:
The Pay Equity Commissioner administers and enforces the Act by:
On November 1, 2023, Lori Straznicky was appointed as Canada's federal Pay Equity Commissioner and a full-time member of the Canadian Human Rights Commission (CHRC) for a term of 5 years. Please visit the pay equity page of the Canadian Human Rights Commission's website for more information.