Human Resources Legislative Update
Federal Government Issues Guidelines on Monetary Penalties Under the Employment Equity Act
Date: February 16, 2024
On February 13, 2024, Employment and Social Development Canada issued updated guidelines on the Employment Equity Act – Monetary Penalties – IPG-121 (Guidelines).
The Guidelines apply to employers subject to the Legislated Employment Equity Program (LEEP) under the Employment Equity Act (Act). The LEEP applies to:
- federally regulated private-sector employers with 100 or more employees
- federally regulated Crown corporations with 100 or more employees
- other federal organizations with 100 or more employees
The LEEP employers have reporting obligations under the Act. A LEEP employer commits a violation of the Act if it fails, without reasonable excuse, to file the employment equity report mandated under the Act or fails to include the required information in the report. A violation is also committed if information is included in the report that the employer knows to be false or misleading. When this occurs, the Minister of Labour (through designated officials) may issue a Notice of Assessment of a monetary penalty in respect of the violation.
The stated objectives of the Guidelines are to explain the application of monetary penalties as they apply to the designated violations of the Act. The Guidelines discuss:
- the monetary penalties model
- the compliance process
- how penalty amounts are determined
- what is contained in a Notice of Assessment containing a monetary penalty
- how to pay a monetary penalty
- how to request review of a monetary penalty
The Act mandates that monetary penalties shall not exceed up to $10,000 for a single violation or up to $50,000 for repeated or continued violations.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©
