A method used to estimate wage differentials during pay equity evaluations cannot be validly used as it contravenes the Quebec Pay Equity Act, ruled the Administrative Labour Tribunal in a decision widely expected by labour lawyers to have a significant impact on estimating and assessing public sector pay equity.
The decision, one of a handful dealing with pay equity audits in Quebec, underlines that employers cannot depart from the objectives behind the Pay Equity Act when estimating wage gaps, and provides practical guidance to employers and labour alike over the pay equity maintenance exercise, according to labour lawyers.