On April 1 the Equal Pay for Equal Work provisions of Bill 148 – Fair Workplaces, Better Jobs – went into effect, with one exception. If you are a unionized employer with a Collective Agreement in place, the changes below will not be required until the earlier of: the expiry of that Collective Agreement or January 1, 2020.
FOR ALL OTHER EMPLOYERS – regardless of size or industry – some important changes have been introduced that go beyond the equal pay-equal work provisions on the basis of sex.
The new provisions are separate from and additional to those related to sex, which were outlined in the Pay Equity Act. That act states that men and women must receive equal pay for performing jobs that may be very different but are of equal or comparable value. It further clarifies that the value of jobs is based on the levels of skill, effort, responsibility and working conditions involved in doing the work.
New provisions based on employment status
The equal pay-equal work provisions introduced April 1 follow the same intent but expand the scope.
The essence of the new provision (Section 42) is that all employees: part-time, temporary, assignment, seasonal and casual must be paid the same amount as a full-time employee performing equal work.
There are exceptions outlined in Section 42.1 (2) which allows differences in pay under certain circumstances:
- a seniority system;
- a merit system;
- a system that measures earnings by quantity or quality of production; or
- any other factor other than sex or employment status.
The ‘any other factor’ provision is one that is open to interpretation. One of these may revolve around the issue of responsibility. Many times part time employees do not carry the same consequences of responsibility, although in many cases that would be covered under the ‘seniority system’ exception.
Important guidance is contained on the Ministry’s site in which they say
“Although it is not a requirement, employers may wish to ensure that the factor is transparent, based on objective and measurable criteria, and applied equally to employees of all sexes and employment status.”
Some best practices
The Ministry also provides some advice on best practices:
Employers are encouraged to:
- review their pay structures to ensure that they are in compliance with the equal pay rules in the ESA
- develop a salary or wage rate grid that outlines the minimum and maximum rates of pay for each job and advise employees of how they will progress through the grid
- post wage rates or scales for advertised job vacancies
- avoid asking job applicants about their prior compensation and benefits or looking for that information through other means during the hiring process
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The Ministry site also has other advice and explanations. https://www.ontario.ca/document/your-guide-employment-standards-act-0/equal-pay-equal-work
In a broader context, many of these best practice ideas are included in the webinar with Senior Employment Officer Wally Sinjakewitsch that we presented in February. The webinar does not cover the Equal Pay-Equal Work provisions of Bill 148 but details other important changes to the Employment Standards Act that effect all Ontario employers.
If you would like to see the webinar please contact us.