Canada’s Pay Equity Act to Take Effect on August 31, 2021: Key Considerations for Federal Employers

The Pay Equity Act, which Canada’s federal government passed in 2018, is going into effect on August 31, 2021. The act aims to address the systemic gender-based discrimination faced by women in federally regulated sectors by achieving pay equity through proactive measures. The act will require all federally regulated employers to analyze their compensation practices, even if they have not received a complaint and even if they believe there is no wage gap in their organization.

Ontario Court Finds Non-Ontario Payrolls Count Toward Severance Threshold

In its recent ruling in Hawkes v Max Aicher (North America) Limited, 2021 ONSC 4290, the Ontario Divisional Court ruled on an application for judicial review that the entire payroll of an employer that terminates the employment of an Ontario-based employee should be used to determine whether the employer’s payroll is at least $2.5 million per year, and therefore whether severance pay may apply. This decision reversed a ruling from the Ontario Labour Relations Board (OLRB) that was based on previous case law finding that only an employer’s Ontario payroll was considered for the severance pay threshold.