Employers and workplaces regulated by the Pay Equity Act

Employers regulated by the Pay Equity Act

The Pay Equity Act applies to federally regulated employers with an average of 10 employees or more. It also applies to Parliamentary institutions through changes made to the Parliamentary Employment and Staff Relations Act.

It covers three types of workplaces:

• federally regulated private-sector workplaces – e.g. banking, communications and transportation sectors
• federally regulated public-sector workplaces  – e.g. government departments and agencies, Minister’s – including the Prime Minister offices, the Royal Canadian Mounted Police and Canadian Armed Forces
• parliamentary institutions  – such as the House of Commons, Senate, Library of Parliament, Parliamentary Protective Service and the offices of Members of Parliament

About 5,000 federally regulated employers with an average of 10 or more employees and about 1.4 million employees are covered by the Pay Equity Act.

Employers are required, among other things, to:

• create and post a pay equity plan within three years
• pay any increases in compensation
• report through annual statements (not until three years after the coming into force)
• update the pay equity plan at least every five years

Employers with fewer than 10 employees will continue to be subject to the pay equity requirements in section 11 of the Canadian Human Rights Act.

Examples of federally regulated private-sector workplaces

Banking activities

Banking services by banks or authorized foreign banks.

Navigation and shipping activities

Any water transportation of goods or passengers that involve the crossing of provincial, territorial or international borders on a regular basis. This includes:

• port services, including loading and unloading vessels, ship repair and salvage services
• navigational, tug, pilot or other harbour services

Air transportation activities

Including airports, airfields, aerodromes, flight and air traffic controllers’ schools and airlines:

• airplane hangar parking, refuelling or rental services
• aircraft servicing and maintenance, including cleaning services and maintaining runways
• airline baggage or cargo services
• airport security guard services

Rail transportation activities

Rail transportation of goods or passengers that involve the crossing of borders on a regular basis, maintenance or other support services.

Road transportation activities

Road transportation of goods or passengers that involve the crossing of borders on a regular basis, maintenance or other support services.

Other interprovincial connections

Activities related to interprovincial connections, such as: 

• canals, pipelines, tunnels and bridges that cross borders
• pipeline transportation of oil, natural gas, or petroleum products across borders

Telecommunications activities

Such as those related to telecommunications (e.g. telephone, satellite and internet providers) and radio and television broadcasting.

Postal services activities

Postal services, including courier services that cross borders and those that are essential to the work of Canada Post.

Works declared to be for the general advantage of Canada

An organization or activity that has been declared by Parliament to be for the general advantage of Canada, such as: 

• grain handling, including grain elevators, flour, feed and seed mills
• livestock food manufacturing
• uranium mining and processing, including nuclear power plants

Protection of fisheries

Businesses whose activities deal with the protection of fisheries as a natural resource.

Crown corporations

Crown corporations that perform duties on behalf of the Government of Canada – Any corporation or subsidiaries established as agents of the Crown and / or who employ employees in connection with the operation of any federal work, undertaking or business, such as: 

• Business Development Bank of Canada
• Canada Mortgage and Housing Corporation
• Export Development Canada