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Canadian government moves forward with pay transparency measures

Equality and inclusion in the workplace has received a boost, courtesy of the federal government.

On Nov. 25, Labour Minister Filomena Tassi, announced that Canada is addressing wage gaps in federally regulated workplaces by publishing the final Regulations Amending the Employment Equity Regulations to introduce new pay transparency measures.

“We always need to look to the future,” she said. “Today, we make meaningful and lasting change to help Canadian workers and workplaces get ahead and make Canada an even better place to work. These pay transparency measures will help Canadian workplaces become more just, inclusive, diverse, and ultimately more productive.”

Canada is the first country to be making wage gap information for women, Indigenous people, persons with disabilities and members of visible minorities working in federally regulated workplaces publicly available.

Awareness of wage gaps

Raising awareness of wage gaps in federally regulated workplaces gives employers the opportunity to show leadership in reducing them. Releasing data on wage gaps in our workplaces will help shift business culture and expectations toward greater equality and better outcomes for workers and their families.

The legislative amendment to the Employment Equity Act and supporting regulations will come into force on Jan. 1, 2021.

The following year (June 1, 2022), employers will be required to include aggregated wage gap information in their annual reporting on employment equity. The first release of aggregated wage gap information will be available in the Employment Equity Act: Annual Report 2022and through an online application.

These new measures harmonize with other changes the government is making, such as implementing the Pay Equity Act, workplace harassment and violence prevention regulations, and a new Administrative Monetary Penalties regime, according to a press release.