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Chapter6

Module 7 focuses on Pay and Employment Equity, examining the Pay Equity Act, Employment Equity Act, and Pay Transparency Act. Key objectives include understanding equal pay principles and applying equity legislation to various scenarios. The module outlines steps for achieving pay equity and the requirements for employers regarding compensation transparency and employment equity programs.

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9 views

Chapter6

Module 7 focuses on Pay and Employment Equity, examining the Pay Equity Act, Employment Equity Act, and Pay Transparency Act. Key objectives include understanding equal pay principles and applying equity legislation to various scenarios. The module outlines steps for achieving pay equity and the requirements for employers regarding compensation transparency and employment equity programs.

Uploaded by

jennifer.mcconachie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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HRM3103: Module 7 Notes

Module 7: Pay and Employment Equity


In this module, we will examine three pieces of legislation that focus on equity in employment,
namely the Pay Equity Act (PE) the Employment Equity Act (EE) and the newly enacted Pay
Transparency Act.

MODULE 7 OBJECTIVES
Upon completion of this module, you will be able to:
1. Describe the key provisions for EE.
2. Distinguish between pay for equal work and equal pay for work of equal value.
3. Apply EE and PE appropriately to scenarios and case studies.

To do in Module 7
1. Read the Module 7 notes (below).
2. Read the textbook, Chapter 6.
3. Complete Unit 7: Employment Equity and Pay Equity in the workbook.
4. Contribute to the Graded Discussion Board (5%).
5. Continue working on Individual Assignment 1.

Equal Pay for Equal Work


The principle of equal pay for equal work requires that men and women receive equal pay for
equal work; it can be found in the Ontario Employment Standards Act. For example, a male
electrician and a female electrician must both earn the same rate of pay from the same
employer, provided that they are performing substantially the same kind of work, in the same
establishment, using substantially the same skills and effort, exercising the same responsibility,
and working under similar conditions.

Equal Pay for Work of Equal Value


The principle of equal pay for work of equal value an be found in the Pay Equity Act of Ontario. It
requires that men and women receive equal pay for work that is equal in value but is not the
same job. The purpose is to reduce the wage gap or systemic gender discrimination in
compensation between men and women. Employers compare the underlying value of jobs
performed predominately by men with those predominately performed by women. If the jobs are
determined to be of equal value, then the employer must adjust the pay for the female job class
to match that of male job class.

HIGHLIGHTS OF PE LEGISLATION
o Employers must use a formal job evaluation system to determine value.
o The job evaluation system must be gender-neutral.
o At a minimum, job value must be rated on skill level, effort, responsibility, and working
conditions.
o Employers with 10 or more employees must evaluate jobs in their workplaces and correct
discrimination in compensation.
o Only individuals in a female job class can complain that their work is undervalued.
o The act is administered and enforced by the Pay Equity Commission.

STEPS TO ACHIEVE PAY EQUITY IN THE WORKPLACE


In order to ensure that pay equity is achieved in the workplace, employers must follow these
steps:

1. Identify establishments.
2. Identify gender dominant job classes.
3. Select a gender-neutral formal job evaluation system.
4. Compare female and male job classes.
5. Prepare and post the pay equity plan.
6. Make pay adjustments.

BILL 3, PAY TRANSPARENCY ACT, 2018


This legislation passed in April 2018 and comes into force on January 1st, 2019. Note,
as per Bill 57 the Conservative Government has delayed the start date for this
legislation. It will now come into effect on a future date proclaimed by the
lieutenant governor of Ontario and there may be changes to the law at that time.
The legislation will require an employer to disclose certain compensation information
about, and to, employees and prospective employees, and restrict the information and
employer can solicit during the hiring process. It will affect employers with 100 or more
employees.
There are four key components to the legislation:
1. An employer may no longer request compensation history information
from an applicant. However, an applicant may voluntarily disclose
compensation history and an employer may consider or rely on the
information.
2. Every publicly advertised job posting must include the expected
compensation or range of expected compensation.
3. An employer may not penalize an employee for seeking and/or sharing
compensation information.
4. Every employer with 100 or more employees (and any ‘prescribed’
employer) is required to file a pay transparency report by May 15 of
each year. The information required includes a breakdown of the employer’s
workforce compensation including differences with respect to gender and
other prescribed diversity characteristics. A copy must be posted in a
conspicuous place in the workplace. An employer with 250 employees or
more must file its first report by May 2020; an employer with 100 employees
or more must file its first report by May 2021. All reports will be made public
by the Ministry. Further details will be set out in the regulations yet enacted.

Employment Equity Act (EE)


The Employment Equity Act (EE) requires federally regulated companies with 100 or more
employees to implement employment equity programs in the workplace in order to ensure equity
of employment. Employers are obligated to identify workplace barriers and develop equity plans
for four designated groups, with the goal to increase their representation in the workplace:

o women
o persons with disabilities
o visible minorities
o Aboriginal people

The Federal Contractor’s Program


The EE also requires that provincially regulated companies with 100 or more employees who
contract business with the federal government in the amount of $1,000,000 or more to commit to
implementing an employment equity program.

Enforcement of equity legislation


Employers under the ESA can file claims with the Ministry of Labour.

Pay Equity Act: The act is administered and enforced by the Pay Equity Commission of Ontario
through the Pay Equity Office and Pay Equity Hearings Tribunal

Employment Equity Act: The act is enforced through Human Resources and Skills Development
Canada (HRSDC).
PRACTICE

PRACTICE QUIZ FOR MODULE 7

After you have completed the assigned readings, answer questions in Practice Quiz 5.

GRADED DISCUSSION FOR MODULE 7

The discussion question for Module 7 is graded (5%). Locate the graded discussion assignment,
read the scenario carefully, and compare it to your readings. Then prepare a detailed response
for the discussion board. Be sure to respond to the postings of your classmates so that you
further develop your answers and your knowledge

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