The Quebec Pay Equity Act: A Barrier To Accessing Pay Equity?

On May 10, the Supreme Court of Canada (the "SCC") upheld the decisions of the Quebec Court of Appeal and the Quebec Superior Court declaring ss. 76.3, 76.5 and s. 103.1 para. 2 of the Pay Equity Act (the "Act") invalid on the ground that these provisions are discriminatory and thus contrary to s. 15(1) of the Canadian Charter of Rights and Freedoms (the "Charter").1 According to the SCC, rather than ending systemic wage discrimination the impugned provisions "place barriers along the path to equal pay for women".

How did the SCC arrive at this conclusion and what will be the impact of this decision on employers with a business in Quebec?

Background

In 1996, the Quebec government adopted the Pay Equity Act to address systemic wage discrimination against women. The Act imposed ongoing obligations on employers to measure and correct pay inequities in predominantly female jobs.

More specifically, under ss. 40 to 43 of the Act, now repealed, employers had a continuous obligation to maintain pay equity and adjust compensation accordingly.

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