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Compensation

Pay equity maintenance evaluation: a guide for Québec employers

Completing a pay equity exercise is only the first step. Every five years, employers must check that pay equity is still maintained, and correct any gaps.

Who is covered?

In Québec, employers with an average of 10 or more employees are subject to the Pay Equity Act. After the initial exercise, they must evaluate whether pay equity has been maintained every five years and post the results.

Why do gaps appear?

Organizations change. Some events can create gaps between predominantly female and predominantly male job classes:

  • new jobs or major changes to duties;
  • a reorganization or merger;
  • a new salary scale or targeted raises;
  • bonuses or benefits added for certain jobs only.

The steps of the evaluation

  • Identify events since the last exercise or evaluation.
  • Update job classes and, if needed, their evaluation.
  • Compare pay for predominantly female and predominantly male job classes.
  • Calculate the required adjustments and their effective date.
  • Post the results within the required time frame and format.

Common pitfalls

Waiting until the last minute, losing the documentation from the previous exercise or overlooking an event during the period are the most common mistakes, and they can make adjustments more costly. Plan the evaluation early and keep a record of changes to your jobs.

Frequently asked questions

How often must pay equity maintenance be evaluated?

Every five years from the date of the initial exercise or the last evaluation, and the results must be posted.

My company has fewer than 10 employees. Does this apply to me?

The Pay Equity Act’s obligations apply to companies with an average of 10 or more employees. If your headcount is growing, review your situation early.

What happens if a gap is found?

The employer must correct it by adjusting pay for the job classes concerned, according to the rules set out in the Act.

This article is for information only and does not constitute legal advice. For a specific situation, contact us.

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