Canadian HR Reporter

April 2020 CAN

Canadian HR Reporter is the national journal of human resource management. It features the latest workplace news, HR best practices, employment law commentary and tools and tips for employers to get the most out of their workforce.

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www.hrreporter.com 25 current compensation practices and become familiar with the act and its regulations (when the regulations become available). It's important to note that any complaints filed before the act is in force will continue to be resolved under the Canadian Human Rights Act's existing complaint-based model. Prepare to make a pay equity plan: Within three years of becoming subject to the act, employers will need to establish a pay equity plan. The plan will need to indicate the number of employees and identify job classes in the workplace. It will need to indicate the gender predominance of the identified job classes (such as female or male predominant or gender neutral) and evaluate the value of work performed by each job class. The compensation associated with each job class will need to be identified and the compensation associated with female- and male-predominant job classes of similar value will need to be compared. The plan will need to set out the results of this comparison and identify which female-predominant job classes will require an increase in compensation and when such increases are due. The plan will also need to provide information on dispute resolution procedures available to employees. The act will replace the existing complaint-based system and expand employer obligations, placing the onus of pay equity analysis on employers. Employers will need to review and update pay equity plans at least once every five years. Additionally, employers will be required to provide employees with the opportunity to comment on a proposed pay equity plan or any updates to a plan before it is finalized. Think about your pay equity committee: Under the act, unionized and non-unionized employers with 100 or more employees will be required to establish a pay equity committee to develop or update the pay equity plan. Committee members will need to include employer, union and non- unionized employee representatives, as applicable. While not explicitly addressed in the act, consider creating terms of reference for the pay equity committee to address issues such as confidentiality, stages in the pay equity process and target completion dates, the process for selection or replacement of committee members and the process for resolving disagreements or a tie vote. Existing pay equity specialists or HR leaders may be able to lead this initiative. For example, ADP has established a global pay equity group. This team looks at implementing policies and practices to maintain pay equity across jurisdictions. This team developed a global job architecture — a structure to classify jobs, determine pay levels per role and create a job market classification system. Consider legal advice and an external consultant Employers' needs and obligations can vary greatly depending on geographic scope, size, industry and more. If your organization is unsure of what obligations apply or how to meet them, consider getting legal advice or using an external pay equity consultant. Professionals with pay equity expertise can assist with staying on top of legislative changes in all relevant jurisdictions (provincial, territorial as well as the federally regulated sector); they should understand the context of various jurisdictions' approaches to pay equity (such as Quebec and Ontario). A third-party consultant may be able to file reports on a client's behalf and help develop pay equity plans and maintenance exercises in the most efficient manner possible. Going further While pay equity legislation represents advancement, these types of laws won't address all factors contributing to the gender pay gap in Canada. Complying with laws is table stakes, especially when employers want to attract and retain top talent. At ADP, we want to go further. We recently implemented a "salary history ban" in the U.S., so recruiters cannot ask candidates their past salary. This is just one example of how organizations can prevent the perpetuation of salary gaps from a previous external role. We also work hard to promote a culture of equality and transparency, and we encourage other organizations to consider additional approaches to the gender pay gap. When every organization embraces equal pay, everyone wins. CHRR Natalka Haras is legal counsel at ADP Canada in Montreal. For more information, visit www.adp.ca.

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