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Canada: Ontario Pay Transparency Update

Bill 57, Restoring Trust, Transparency and Accountability Act, 2018, which received Royal Assent at the end of 2018, halted the coming into force of the Pay Transparency Act, 2018. As a result, at this time the Pay Transparency Act, 2018 is not in force. The Pay Transparency Act, 2018 will not be in force until and unless proclaimed by the Lieutenant Governor. It is currently unclear when or whether the Pay Transparency Act, 2018 will be proclaimed.

The Ontario Ministry of Labour is conducting public consultations with respect to proposed pay transparency reporting requirements, which would require certain employers to report on differences in compensation between men and women and on workforce composition with respect to gender. These consultations will close on April 5, 2019.

Unlike pay equity obligations, which are already applicable to most provincially regulated employers by virtue of the Pay Equity Act, there are currently no legislated pay transparency obligations in Ontario. However, employers are well advised to follow pay transparency developments. If proclaimed, Ontario’s Pay Transparency Act, 2018 will impose a number of significant obligations on provincially regulated employers.

We will monitor the progress of pay transparency initiatives and post additional updates regarding the development of Ontario’s pay transparency legislation as they become available.