Pay equity: 3 changes to the Act for your next retention

On December 31 and March 31, several thousand companies will be responsible for carrying out the assessment of maintaining pay equity. This is a legal obligation, even during a pandemic. Fortunately, since thesalary inequalitiesbetween men and women really exist in Quebec.

Did you know that important changes were made to the Pay Equity Act on April 10, 2019? Here are 3 that will completely change your maintenance assessment practices.

The events

Maintaining pay equity must now be achieved by taking into account all events likely to create or recreate salary gaps since your last fiscal year. For example, an event could be the change of position responsibilities, the creation of a position, a restructuring, etc. You will therefore have to measure, individually, the impact of each of them at the time of the work. If a discrepancy is noted, it must be corrected from the date of the event that caused it. In order to track and maintain the details of these events, the CNESST provides aRegister for monitoring events occurring in the company.

Payment of adjustments

In the event of a salary gap in a predominantly female job category, two adjustments are now provided as corrections:

1. A lump sum, retroactive to the date of the event, must be paid on the date of the new posting. This can, however, be spread over a maximum period of 4 years, paid annually in equal amounts.
2. As before, a salary adjustment to the hourly rate must also be paid from the date of the new posting in order to correct the discrepancy. Adjustments cannot be staggered.

The participation process

The Act provides for a participation process when the employer decides to evaluate the maintenance of pay equity alone, rather than in committee or jointly with an accredited association. The objective is to put in place consultation measures that will allow employees to obtain information about the work, ask questions, make comments or suggestions. The process must be completed 60 days before the first posting. It must be put in place when the initial exercise has been carried out with a pay equity committee or when a union is present in the company.

The pay equity exercise should not be taken lightly by business leaders. Not only because it is an obligation, but because it contributes to social justice. When we eliminate pay inequities and their impacts on women, society as a whole benefits!

Having trouble with the changes to the Pay Equity Act?Contact usto delegate or facilitate your maintenance exercise.  Training is also available!

For the complete list of changes to the pay equity law, visit the websiteCNESST.