Pay Equity: A Legal Requirement and Strategic Lever

Legal compliance

June 12, 2025

Pay Equity: A Legal Requirement and Strategic Lever

In a constantly evolving labor market, pay equity should not be seen as a mere administrative exercise. It represents a strong commitment to fairness, transparency, and inclusion—values that reflect the foundation of any modern organization. For companies in Quebec, pay equity is also a legal obligation governed by the Pay Equity Act.

At Iceberg Management, we understand how complex it can be to navigate the requirements of the law. Whether it’s for an initial pay equity exercise or a maintenance review, our expertise allows us to simplify the process while ensuring full compliance with the legislation.

Compliance and Rigor: The Importance of Staying Up to Date

The Pay Equity Act aims to correct wage gaps between female-dominated and male-dominated job categories. It applies to all provincially regulated businesses with 10 or more employees. Employers must complete an initial pay equity exercise, followed by a maintenance review every five years. Salary adjustments may be required if gaps are detected, and penalties can apply in cases of non-compliance.

Despite this clear obligation, many organizations delay these procedures, often due to a lack of internal resources, time, or understanding of the steps involved. This is where external support becomes an undeniable added value.

Iceberg Management: Two Tailored Approaches to Meet Your Needs

We offer two types of support to meet the diverse realities of organizations: outsourcing and facilitation.

Outsourcing involves delegating the entire pay equity process to one of our experts. This solution is ideal for companies lacking internal resources or those seeking to guarantee quality and compliance without burdening their teams. As a trusted partner, we manage all steps—from job category analysis and compensation calculations to the preparation of postings and strategic recommendations.

Facilitation, on the other hand, is suited for organizations that wish to maintain control over the process while being guided. This method enables knowledge transfer and internal skill development. Our consultants support each step by providing guidance, validation, and expert advice to ensure the exercise fully complies with the law. It’s a collaborative approach that builds long-term autonomy while securing short-term compliance.

Why Work with an External Consultant?

Working with an external consultant like those at Iceberg Management comes with many advantages. In addition to providing an objective perspective, we bring a deep understanding of the law, methodological rigor, and the ability to explain complex concepts in a clear and accessible way. We know how to ask the right questions, identify risk areas, and offer practical solutions tailored to your reality.

Our human, professional approach—rooted in HR best practices—makes us a strategic ally in your pay equity journey. We don’t just “tick boxes”; we help you build a fairer and more equitable workplace while reducing legal risks.

Pay Equity as a Driver of Positive Change

Beyond compliance, pay equity offers a powerful opportunity to recognize your team’s contributions, enhance your employer brand, and boost employee engagement. Ensuring fair compensation demonstrates that every role is valued for its true worth, regardless of gender. This strengthens employee trust and loyalty.

Being proactive about pay equity also aligns your organization with a culture of continuous improvement and inclusion—an approach we strongly advocate at Iceberg Management.

In Conclusion

The pay equity exercise is not something to be taken lightly. It’s a significant initiative that can positively transform your company—especially with the right support. Whether you’re looking to fully delegate the process or prefer guided execution, Iceberg Management is your partner of choice.

Want to discuss your obligations or find out which approach best suits your organization? Contact our team. Together, let’s build a more equitable future.

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Danitza Compere

Human Resources Consultant

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