Employment Standards
Ontario’s Employment Standards Act requires equal pay for equal work. If workers of a different sex perform the substantially the same kind of work and the job requires the substantially the same level of skill, effort, and responsibility, and the work is performed under similar working conditions, then these workers are entitled to equal pay. The only limits to this are seniority systems, merit systems, systems measuring earnings by quantity or quality of production, or reasons other than sex. These limitations can be particularly restrictive for workers who perform similar tasks as their colleagues yet earn less due to reasons other than sex. Additionally, the ESA protects workers from reprisals when asking fellow workers about their compensation to determine or assist others in determining whether their employer is complying with equal pay for equal work provisions. The ESA also protects workers from having their wages lowered in order to comply with the requirements around equal pay for equal work.
Pay Equity
For many workers, issues about pay parity can be incredibly concerning. In Ontario, the Pay Equity Act has been established as remedial legislation to reduce discrepancies between the earnings of men and women. Specifically, the Pay Equity Act organizes jobs in a workplace as being either male job classes or female job classes. These classifications are not meant to be exclusionary or indicate that one such job is or ought to be delegated to a specific gender of person. Instead, these classifications are established based on material facts, specifically whether 60% of workers are a specific gender within the class, alongside the historical position of the class and gender stereotypes regarding the type of work. The intention behind these provisions is to ensure that the disparity in earnings of female job classes is reduced such that they approach if not achieve parity with male job classes. Achievement of pay equity occurs when the pay rate of a female job class is at least equal to the male job class in the workplace where the work performed by the two job classes is of equal or comparable value. Additionally, workers disclosing their pay scale under the Pay Equity Act are protected from retaliation or reprisals. The Pay Equity Act also protects workers from having their wages lowered in order to achieve pay equity between female and male job classes. The Pay Equity Act is a significant step towards reducing inequalities in earnings between women and men in the workplace.
Pay Transparency
The Ontario government passed the Pay Transparency Act, in 2018, although the legislation itself has not actually had a chance to enter into force. In essence, it provides workers with anti-reprisal protections, giving workers the freedom to inquire about their earnings, disclose their compensation with fellow workers. Additionally, it requires employers to construct Pay transparency records, affording workers the opportunity to see the differences in payment earned by other workers throughout the company. These pay transparency records are to be posted online or conspicuously on site for workers to easily access. Additionally, the Ministry is obliged to publish the pay transparency records. These provisions could make workplaces more open to workers and inform workers of the relative pay grades their fellow workers earn. However, as mentioned earlier, these protections have yet to be implemented, despite the bill being passed in 2018.
Common Law
Workers in Ontario are also protected under the common law regarding termination for cause. If an employer terminates a worker’s employment because the worker disclosed their wages to colleagues, disclosure of wages must be a prohibited term under the company’s policies or the employment contract. In either case, the policy itself must be enforceable as an element of the contract, failing which, the policy cannot be relied upon to terminate the worker’s employment. If the policy or contractual terms are outright or potentially illegal, then the specific provision, if not the entire contract, will be unenforceable. Furthermore, workplace policies or rules must be applicable in the workplace before anyone can be dismissed by them. To determine whether workplace policies or rules are applicable, the starting place is Lumber & Sawmill Workers’ Union, Local 2537 v KVP Co. Ltd. This case outlines that workplace policies must be clear and unequivocal, reasonable, and consistently enforced, in addition, the worker must be made aware of the policy and made aware that breach of the policy could result in termination. If an employer fails to take these steps, they will not be able to rely on the workplace policy to terminate a worker for disclosing their wages. Even if a rule is reasonable and enforceable, the Supreme Court of Canada in McKinley v. BC Tel, 2001 SCC 38, held that the breach of the rule must be of such a significant degree to justify dismissal in the circumstances. If the breach of the rule did not irreparably harm the employment relationship, dismissal for cause may be too harsh a penalty. Nevertheless, if a rule is found to be reasonable, discipline can still be imposed for breaching the rule, even if dismissal may not be permitted.