Pay equity in Quebec: key considerations for HR professionals

Navigating pay equity in Quebec can be a daunting task for HR professionals. Established in 1996, the Quebec Pay Equity Act has been a unique piece of legislation that stands apart from its Ontario and Federal counterparts. Applicable to both public and private companies with more than 10 employees across the province, the Act outlines the steps to achieve and maintain pay equity.  The process can be complex and requires a significant time investment from employers, particularly for maintenance evaluations.

The following is a list of key considerations for Quebec employers as they navigate their obligations under the Act:

• A common misconception is that pay equity only needs to be addressed every five years, however this is no longer the case as of 2019, when amendments to the Act were introduced. While employers are required to post a plan and declare their compliance online every 5 years, they must ensure that pay equity is maintained continuously, including keeping a log of every new event that could create a pay equity gap. This means that pay equity in Quebec is an ongoing process, not a one and done occurrence.
• There are numerous circumstances that can drive a pay equity gap, including changes in compensation practices, introduction of a new employee benefit, updates to a job’s tasks and responsibilities, and job creations or abolitions. Employers are encouraged to reflect carefully on recent changes and consider how they may have an impact on their pay equity obligations.
• Embedding pay equity into HR strategies can help mitigate risks and streamline maintenance compliance. This includes approaching compensation, hiring, and employee development practices with a pay equity lens and monitoring significant changes in the workforce.
• Budgeting for pay equity work and potential wage adjustments is essential. Carrying out regular pay equity analyses to determine if salaries require adjustments, and planning for time commitment from internal resources including HR, payroll, and total rewards teams can increase efficiency and improve compliance. Consideration should also be made for the time required from employees and managers to provide insights into their tasks and responsibilities.
• Lastly, don't underestimate the value of a second set of eyes to review pay equity work. Even if the heavy lifting is carried out internally, having a pay equity professional review the analysis can provide an additional layer of assurance. They can bring a fresh perspective, identify potential oversights, and offer advice on how to address any issues found. Their expertise in pay equity laws and regulations can help to ensure that a company addresses its requirements. 

Promoting fairness and equality in the workplace can have far-reaching benefits for an organization's culture and reputation, making pay equity compliance not just a legal requirement but also the right thing to do. Quebec-based employers and HR professionals are encouraged to approach pay equity strategically, establish a consistent maintenance routine, and dedicate sufficient time for a thorough, continuous analysis.

Questions about pay equity? KPMG’s team of legal and advisory professionals provide the support and tools to help navigate the complexities of Quebec pay equity laws and regulations. Reach out today for more information.

Special thank you to Katrina Girard for her contributions to this article.