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At its core, pay equity is about ensuring that jobs performed primarily by women are compensated equally to jobs performed primarily by men when those jobs are of equal value within the organization. In Ontario, this is not just a best practice—it is a legal requirement. Public organizations and private employers with ten or more employees must both achieve and maintain pay equity under the Pay Equity Act. For organizations without proper documentation or a structured approach, the time to act is now.
Achieving and maintaining pay equity requires a structured and methodical process. The following milestones provide a roadmap for employers in Ontario:
While the process may sound straightforward in principle, employers often encounter complexities that require careful navigation. Mergers and acquisitions can introduce inconsistent compensation practices, while some organizations may lack formal salary structures or face difficulties accessing historical data. A limited number of male comparators may also complicate the analysis.
Another consideration is retroactive payments. If deadlines are missed, organizations must conduct evaluations as though they had been completed on time. This means that any required salary adjustments must be backdated, and in some cases, interest may also be applied.
Achieving pay equity is not a one-time exercise. As organizations evolve, new roles emerge, salary structures change, and workforce demographics shift. Employers must maintain pay equity to ensure ongoing fairness.
Best practice is to conduct a pay equity review at least once a year. Consistent monitoring helps address issues early, prevents new gaps from emerging, and demonstrates a proactive commitment to fairness within the organization. Documentation is equally critical: it supports transparency, provides defensibility in the event of disputes, and ensures readiness for audits.
For organizations preparing to embark on or revisit a pay equity review, the following steps can provide clarity and structure:
Pay equity in Ontario is both a legal requirement and a strategic opportunity. Organizations that proactively approach compliance not only avoid risk but also strengthen trust, employee engagement, and organizational reputation. By following a structured process, maintaining clear documentation, and committing to ongoing reviews, employers can ensure they remain compliant while building a more equitable workplace.
This article was written by:
Will Lamond,
Principal, Compensation, Normandin Beaudry
and
Diane White,
Senior Principal, Compensation, Normandin Beaudry