Human Resources Legislative Update
New Guidelines on Employment Equity Reporting
Date: October 29, 2021
The federal government has published two new employment equity interpretation, policies and guidelines (IPGs) for employers subject to the Legislated Employment Equity Program (LEEP) under the Employment Equity Act.
IPG 106 “Definitions and interpretations for reporting salary” provides that salary, bonus pay and overtime pay must be included as salary for employment equity reporting purposes. Bonus pay and overtime pay, however, are to be excluded from the annual salary and hourly rate calculations in Form 2 Parts A – G of the employment equity report.
In addition, the following payment and benefits made in addition to basic pay are to be excluded altogether for reporting purposes: allowances, reimbursements for employment expenses, benefits (including taxable benefits), payment in kind, securities, compensation for extra-duty service, retroactive payments, severance or termination pay, vacation pay (with no time off taken) and supplementary payments.
IPG 106 defines and provides interpretation respecting each term noted above.
IPG 107 “Reporting salary” details what information must be reported in Form 2 Parts A – G. As well, it provides examples of how to calculate salary ranges, and examples of how to calculate wage gaps related to hourly wages, bonus pay and overtime pay and hours.
Helpfully, the Workplace Equity Information Management System online reporting system can automatically perform many of the requisite calculations. Guidance on special salary scenarios, such as commission-only salaries, can be requested via email to email@example.com.
Should you have any questions related to LEEP, or the Employment Equity Regulations under the Employment Equity Act, please contact your regular Hicks Morley lawyer.
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