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Pay transparency has become the hottest thing in new HR lawmaking. Even if not currently required in your jurisdiction, following pay transparency may soon become a legal obligation for your company. It’s also a best practice. Download your copy of the pay transparency gameplan to get a free template policy for quick implementation of your pay transparency policy.
Pay Transparency Legislation in Canada
The momentum for pay transparency in Canada is on the rise, evidenced by a study showing 84% of Canadians favor laws requiring salary range disclosures in job postings. Employees are increasingly interested in understanding how their pay compares to peers and the rationale behind their compensation. This growing demand, alongside new legal requirements across Canada, is prompting employers to proactively address pay transparency issues.
Where Is Pay Transparency Legally Required?
While British Columbia is the most recent jurisdiction in Canada to pass pay transparency legislation, several other jurisdictions have also passed various forms of pay transparency laws, including Prince Edward Island and Newfoundland and Labrador. Ontario is also taking steps towards increased pay transparency with the recent introduction of Bill 149, the Working for Workers Four Act, 2023, which aims to close the gender pay gap and better equip workers with compensation information while searching for jobs.
As pay transparency legislation passes in more Canadian jurisdictions, it will become mandatory for employers to increase their transparency about pay to some degree. However, even in locations without legal requirements, an increasing number of organizations are seeing the value in pay transparency and are voluntarily shifting towards greater openness about compensation.