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LAW 529 (123)
Chapter 9

Chapter #9-Equity In The Workplace - Copy.docx

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Ryerson University
Law and Business
LAW 529
Pnina Alon- Shenker

Chapter 9 Equity In The Workplace EMPLOYMENT STANDARDS ACT SO EQUAL PAY FOR EQUAL WORKSection 42 of the Employment Standards Act makes it illegal to pay EEs of one sex less money for doing the same work a EES of the other Sex o No ER shall pay an EE of one sex at a rate of pay less than the rate paid to an EE of the other sex whenThey perform substantially the same kind of work in the same establishmentTheir performance requires substantially the same skill effort and responsibility Their work is performed under similar working conditions This law requires ERs to pay women and men the same rate if they are substantially the same kind of work in the same establishment using substantially the same skills and effort exercising substantially the same responsibility and working under similar conditionsExceptions are allowed only if the difference in compensation is based on senority merit productivity or any other factor not based on gender such as a premium paid for working a night shiftTo fall within the protection provided by s 42 the work of one EE must be substantially similar but need not to be identical to the work of anotherTo prove a violation of the equal pay for equal work provision there is no need to show that an ER intended to discriminate The law applies wherever women and men perform similar work but receive different rates of pay for reasons other than the exceptions aboveAn ER may not reduce the rate of pay of the highpaid gender to comply with the law under s 423 it must raise the pay of the lowpaid genderEqual pay for equal work is enforced by requiring individuals to file a claim with the ministry of labourPAY EQUITY ACT SOEQUAL PAY FOR WORK OF EQUAL VALUEPay equity or equal pay for work of equal value is a relatively recent concept that requires ERs to compare totally different jobs and ascertain whether they are equal in value A comparison is made between the values of the jobs not their content Ontarios private sector equal pay for equal work was the first of its kind Pay equity arose from the concern that equal pay for equal work laws would never be able to achieve gender equality in pay bc men and women typically do not perform substantially similar work The purpose of pay equity is to reduce the wage gap between men and women by requiring ERs to compare the underlying value of jobs performed predominantly by men with those performed predominantly performed by women Pay for femaledominated jobs is than based on their value in relation to the value of maledominated jobs rather than on the value assigned to them by the external labour market To Whom Does the Pay Equity Act ApplyAll Ontario public sector ERs and all provincially regulated private sector ERs with ten or more EEs are covered by Ontarios Pay Equity Act However the Act distinguish between ERs that had 10 or more EEs in Ontario when the legislation was passed in 1987 and ERs that were not in business or had fewer than 10 EEs at that timeThe act recognizes that rectifying longstanding wage inequalities takes time To address this the Act took the following approach ERs with 100 or more EEs as of January 1 1988 were required to prepare and implement a plan for correcting unequal wages ERs with 10 to 99 EE as of January 1 1988 were not required to prepare a pay equity plan but were required to achieve pay equity within a specified timeThe Act also provided for a phasein period based on an ERs size that gave existing orgs time to perform the necessary job evaluations make job comparisons and prepare and implement their pay equity plans New ERsthose that were not operating in Ontario with 10 or more EES or those that reached the 10 EE thresholds after January 1 1998are required to comply with the pay equity legislation immediately
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