Chapter 6: formulating the reward & compensation strategy. Reward strategy: the pan for the mix of rewards that the org. intends to provide to its members. Compensation strategy: one part of the reward strategy & consists of 2 main aspects: the mix of base pay, performance pay & indirect pay to be used. Constraints on compensation strategy: legislated constraints the federal gov t is empowered to pass labor legislation covering all federal employees & workers in a number of specified industries (transportation, communications, defense ). Federal labor laws covers 10% of private-sector employees (all others are under provincial & territorial legislation) Employment standards legislation: stipulates the min. stnds for pay & other conditions of employment by which every employer must abide (paid off time, max. hours of work before ot, min. wage ) Human rights legislation: prohibits discrimination in hiring or employment on the bases of race, ethnic origin, religion, gender, marital status or age.