Canadian Payroll Reporter - sample

6 Canadian HR Reporter, a Thomson Reuters business 2018 News May 2018 | CPR Bill 3, the Pay Transparency Act, 2018, would require em- ployers to report to the gov- ernment on their workforce makeup and differences in the compensation they pay to their employees, based on gender and "other diversity characteristics." Employers would also have to post the reports online or in at least one conspicuous place in all of their workplaces. The legislation, which would take effect next January, does not specify which diversity charac- teristics employers would have to report on or how often they would have to submit reports. The government said it would provide more details after it holds consultations on what to include in regulations for the legislation. The bill would also require employers to include informa- tion about expected compen- sation rates or ranges in all job postings they publicly advertise. It would also prohibit employ- ers from asking job applicants about their past compensation, although prospective employees could voluntarily provide it. It would also prohibit employ- ers, or persons acting on their behalf, from intimidating, dis- missing, or otherwise penalizing employees who disclose their pay to other workers, ask their employer about their compensa- tion, inquire about pay transpar- ency reports, or ask the employ- er to comply with the legislation. "The bill establishes require- ments that would ensure that all Ontarians, including women and other groups who have been disadvantaged in the workplace, have equal opportunity to get hired, negotiate fair wages, and progress in their career based on merit. Through measures set out in the bill, it will help address the gender wage gap," said Labour Minister Kevin Flynn. Government documents state that, on average, women earn about 30 per cent less than men do. Statistics show that the wage gap is even higher for Indig- enous, disabled, racialized, or immigrant women. If enacted, Ontario would become the first province in Canada with pay transparency legislation. The federal govern- ment has announced plans to introduce pay transparency measures for federally regulated workplaces. While the bill did not specify which employers would be sub- ject to the reporting require- ments, the government has said it would apply them to the On- tario Public Service first. Follow- ing consultations, it said private- sector employers with more than 500 employees would be subject to the act and that eventually it would extend the legislation to employers with more than 250 workers. Before writing the bill, the government said it studied pay transparency laws in three other countries. The U.K.'s pay transparency law, which took effect last year, requires employers with at least 250 employees to annually re- port information on gender pay gaps that exist in their or- ganization. Besides submitting the report to the government, employers must post it on their "public-facing" website for at least three years. The types of earnings used for the calculations include ba- sic pay, allowances, shift premi- ums, commissions, incentive payments, performance and productivity bonuses, profit- sharing, and securities options. In Germany, the federal leg- islature passed a law last year that requires employers with reporting obligations under the country's Commercial Code who have more than 500 em- ployees to regularly report to the government on their progress in terms of equality and equal pay. The reporting obligation is every three to five years, depending on whether there is a collective agreement. The law also gives employ- ees working for employers with more than 200 staff the right to know the average remuneration paid to a comparable group of employees of the opposite gen- der who do the same or com- parable work for the employer. In general, employees have the right to inquire every two years. Australia implemented gen- der equity reporting legislation in 2012. Its Workplace Gender Equality Act (WGEA) requires employers with at least 100 em- ployees to annually report to the government on six gender equality factors. These include the gender makeup of the orga- nization, the gender composi- tion of the employer's governing boards, and equal remuneration between men and women. Employers must take account of all employees in their report, including full-time, part-time, casual, and temporary workers. Employers have to report each employee's base salary and their total remuneration, including bonuses, commissions, overtime pay, benefits, and allowances. The government provides each employer with a report showing how it compares to in- dustry benchmarks for gender equality. If an employer does not ful- fill its reporting obligations, the WGEA has the authority to publicly name the employer. In addition, employers who do not comply may lose eligibility for Commonwealth and state ten- der contracts and for govern- ment grants or other financial assistance. These are not the only coun- tries with pay transparency laws. A number of other European nations have implemented simi- lar measures to close the gen- der wage gap, which European Union (EU) statistics show was an average of 16.2 per cent in 2016. In 2014, the European Com- mission recommended that all member countries implement at least one of the following tools: • give employees the right to request information on gender pay levels for the same work or work of equal value • require employers to report on average gender pay levels • require employers to carry out audits on pay and pay differen- tials based on gender • ensure that equal pay is part of collective bargaining. A 2017 European Commis- sion report on pay transparency showed that although many of the EU-member countries had introduced at least one of the tools, 16 of the 28 members had not put any of them in place. "While many countries have recently started to implement these measures, only a handful of countries already have some experience with at least one of the instruments," said the report. The commission said it is now considering whether to intro- duce further measures at the EU level to help close the gender pay gap. In Ontario, pay equity advo- cates have expressed concerns that the proposed legislation here will be too weak to be effective. "Pay transparency is an im- portant enforcement tool," said Fay Faraday, co-chair of the On- tario-based Equal Pay Coalition. "But this bill must be strength- ened if it is to make meaningful change. (The) first reading (of the bill) lets most employers off the hook." The coalition has called on the government to make a number of amendments, including ex- panding the reach of the legisla- tion to apply to all public- and private-sector employers with more than 10 employees similar to the province's Pay Equity Act. It also wants the legislation to clearly specify what informa- tion employers must include in their pay transparency reports, including compensation struc- ture and wage grids by gender, job classification, and job status. In addition, it says the bill should require employers to deliver an- nual transparency reports to their corporate shareholders. With Ontario heading to the polls in June, it is impossible to know whether the pay transpar- ency legislation will survive a possible change in government. In the meantime, payroll professionals who want to stay on top of potential legislative amendments should familiarize themselves with the bill. First province to attempt transparency legislation from ONTARIO on page 1 News Government documents state that, on average, women earn about 30 per cent less than men do.

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