By now most companies have complied with the Pay Equity Act; however there are still many companies that must complete their pay equity plan for January 1, 2014. If your company has not recently complied with the Pay Equity Act, here are some possible scenarios based on the average number of employee during your reference period.
See below for the methodology of calculating the average number of employees.
Companies who were active at November 21, 1996
Reference period: November 21, 1996 to November 20, 1997
Average of 10 employees or more
- Deadline for completion of original plan: December 31, 2010
Adjustments retroactive to November 21, 2001 (original deadline) - Deadline for maintenance of plan: December 31, 2010 (for companies who had previously complied)
Companies who became active between November 22, 1996 and March 12, 2008
Reference period: the 12 month period after hiring first employee
Average of 10 employees or more
- Deadline for completion of original plan: 5 years from start of company activities
- Deadline for maintenance of plan: December 31, 2010 (for companies who had previously complied)
Companies who became active after March 12, 2008
Reference period: First calendar year that the average number of employees was 10 or more
- Deadline for completion of original plan: 4 years after the 1st of January of the following calendar year
If your company is less than 9 employees in their reference period
Use the first calendar year at which the average number of employees was 10 or more, starting from 2008.
Deadline for completion of program:
- If 10+ in 2008, the deadline is January 1, 2014
- If 10+ in 2009 or later, the deadline is 4 years after the 1st of January of the following calendar year
Calculating the average number of employees
Calculation methodology:
- Add the number of employees on each pay register during the reference period
- Divide this number by the number of payrolls to get the average number of employees during the reference year.
- Companies with 10 employees or more will have different obligations depending on whether they have: 10 to 49 employees, 50 to 99 employees or 100+ employees.
Included in calculation:
- Full-time employees
- Part-time employees
- Temporary or seasonal workers
- Management employees
- Employees on leave
- Certain shareholders can be included
Excluded from calculation:
- Interns and summer students
- Independent workers
- Senior Management (which meet the Commission’s definition)
- Employees hired through work integration programs
- Employees whose workplace is outside of Quebec
- Police and Firefighters
Maintenance of Pay Equity: A company’s pay equity plan must be maintained ever 5 years
Pay Equity Declaration: Mandatory for companies currently employing 6 employees or more
For more information on complying with Pay Equity, we invite you to consult prior editions of the HR Connection Newsletter, or contact one of our HR Advisors for a free consultation.
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