Businesses with fewer than 10 workers
Although they are not covered by the Pay Equity Act, businesses employing fewer than 10 people still have obligations toward their workers.
Businesses with fewer than 10 workers must provide the CNESST with an Employer’s Declaration on Pay Equity (DEMES) as soon as it is registered with the Registraire des Entreprises (REQ).
This procedure differs from the initial pay equity exercise and from subsequent maintenance evaluations. It must be carried out whether or not pay equity audits have been conducted. The purpose of the DEMES is to raise employers’ awareness of their responsibilities in terms of pay equity.
Even without the protection of the Pay Equity Act, businesses with fewer than 10 workers can invoke Section 19 of the Charter of Human Rights and Freedoms if they feel that their business is not respecting its pay equity rights.
More than 10 workers: thresholds set by law
All businesses with an average of more than 10 workers per year must carry out pay equity work. The requirements are essentially the same for all businesses, regardless of the number of workers, although the obligations increase with the size of the workforce.
If, after calculation, the average number of workers reaches 10 or more, the business must complete its pay equity exercise within four years of reaching this threshold. Implementing pay equity measures allows for salary adjustments.
It applies to all businesses reaching this threshold, regardless of the number of people employed.
Each employer must identify the job categories and their gender predominance, then calculate the wage gaps between job categories. Finally, the employer must inform workers of the results of this exercise.
During the mandatory posting of the results, workers may request additional information and make observations. Posting obligations differ depending on the number of workers.
The employer must also submit a report to the CNESST, which will verify that the law has been respected.
At the end of the exercise, the employer must declare in the Employer’s Declaration on Pay Equity (DEMES) whether the work has been carried out. The CNESST has created a deadline calculator to determine the dates for fulfilling these obligations.
Five years after the initial exercise, the employer must conduct an evaluation of the maintenance of pay equity, to be carried out alone (in which case, other obligations apply), in a committee, or with a certified association. Again, the deadlines vary for each business.
Businesses with 10 to 49 workers
Once the average number of workers has reached 10 people, the employer has several obligations under the law.
Like all businesses with more than 10 people employed on average over a year, those employing between 10 and 49 people must carry out an initial pay equity exercise.
After this, they must post the results of this exercise for 60 days and specify the terms of the salary adjustments.
A second 60-day posting must be carried out no later than 30 days after the end of the first posting, to include any comments or possible changes made.
If the initial exercise does not comply with the law, a worker may file a complaint with the CNESST up to the posting of the results of the maintenance evaluation.
Businesses with 50 to 99 workers
Businesses with an average of between 50 and 99 workers over the year have more pay equity obligations.
Unlike businesses with 10 to 49 workers, those with 50 to 99 workers must establish a pay equity program, which is divided into four stages:
- Stage 1: Identification of job categories
- Stage 2: Choice of an evaluation method
The first round of posting comes at the end of Stage 2. The second 60-day posting (within 30 days of the first) must include any changes made since the first posting, information on possible recourse for workers, 84 4 – The notion of pay equity explained and deadlines and means for filing a complaint.
- Stage 3: Evaluation of job categories and calculation of wage gaps
- Stage 4: Definition of the terms for implementing pay adjustments
The second round of postings comes at the end of Stage 4. It also lasts 60 days, followed by another 60-day posting to present the modifications made and outline the opportunities for comments and recourse.
Businesses with more than 100 workers over the year
Additional obligations regarding pay equity apply to businesses with 100 workers or more.
Businesses employing an average of more than 100 people over the year must carry out the same pay equity programme as businesses employing 50 to 99 people.
They must also establish a joint pay equity committee, composed of representatives of both the employer and the workers, to ensure that all parties are involved in implementing the program.
The posting obligations are the same as those applying to businesses with 50 to 99 workers.
If the initial exercise does not comply with the law, a worker may file a complaint with the CNESST only in the absence of a legally compliant pay equity committee. Indeed, the committee holds decision-making authority if it has been properly constituted. However, the committee and its members may be subject to a complaint if there has been bad faith, discrimination, or an arbitrary decision.
