The Pay Equity Act was introduced in 1996. It applies to all Quebec businesses with 10 or more employees, except those under federal jurisdiction.
The purpose of the Act is to correct the wage gaps that are created over time for predominantly female positions. The objective of the Act is not to promote gender equality in wages, but rather to give predominantly female jobs the same wages as male jobs, even if the position is different (for example: administrative assistant and office clerks).
Essentially, 3 main criteria are considered to determine female or male dominance:
- Current predominance—at least 60% of the positions in the job category are held by women or men.
- Historical predominance—historically, at least 60% of the positions in the job category were held by women or men.
- Gender-based occupational stereotype—job category commonly associated with women or men due to gender-based occupational stereotypes e.g., nurse, police officer.
It is important to note that the first pay equity exercise must be done within 5 years of the year in which the company had more than 10 employees. During the years prior to the first exercise, the company must file an annual declaration regarding pay equity with the CNESST.
Then, every 5 years, the maintenance exercise must be carried out for the company to be compliant with the requirements of the Act. During the maintenance period, it is important to understand that the company must always be equitable. Failure to do so may result in retroactive adjustments.
Here are the main steps to achieve pay equity:
- Determine the gender predominance of job classes and identify predominantly female job classes.
- Evaluate job classes.
- Weigh evaluation factors and sub-factors.
- Estimate wage gaps using the aggregate or individual method.
- Correct any discrepancies that may exist if necessary.
- Display the results of the exercise to employees.
Even though for many this Act may seem restrictive, it nevertheless presents many advantages in the context of labour shortage. Among other things, it forces companies to think strategically not only about direct compensation (salary), but also about the other benefits offered. This approach will allow the company to stand out from other organizations, to attract the best talent and, above all, to retain them.
If you need help in carrying out the pay equity exercise or maintaining it, do not hesitate to contact us at 450.667.0202.
