Beginning October 20, 2026, new “Equal Treatment” wage provisions in the Canada Labour Code (the “Code”) will require federally regulated employers to review how they set employee wage rates. The changes are intended to prevent employees from receiving lower rates of pay simply because of their employment status as full-time, part-time, temporary, or permanent.
The rules prohibit employers from paying one employee a rate of wage that is less than the rate paid to another due to a difference in employment status if:
- they work in the same industrial establishment;
- they perform substantially the same kind of work;
- the performance of that work requires substantially the same skill, effort and responsibility; and,
- their work is performed under similar working conditions.
There are several permitted exceptions to this new rule. Wage differences may be justified based on a genuine system of seniority, merit, the quantity or quality of an employee’s production, or other differences permitted by the regulations, such as those related to recruitment difficulties or geographical differences.
Employees who believe their wages are lower due to their employment status may request a formal wage review, to which employers must respond in writing within 90 days. Retaliation or unfair treatment for seeking a wage review are prohibited.
Ahead of October 20, 2026, affected federally regulated employers should review wage rates and ensure that any differences are properly justifiable under the new provisions. Such employers may also want to consider putting a wage review procedure in place in the event of any wage review requests to ensure the 90-day timeline can be met.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
