Federally regulated employers are facing a significant development under the Canada Labour Code (the “CLC”) with the coming into force of new equal pay provisions on October 20, 2026. These long-anticipated amendments establish a statutory framework requiring employers to ensure that employees performing substantially similar work receive equal pay, regardless of differences in employment status.
These new obligations will apply to federally regulated employers, including industries such as banking, airlines, railways, trucking, and telecommunications, but not employers that are provincially regulated.
Overview of the New Regime
Effective October 20, 2026, the CLC will prohibit federally regulated employers from paying employees different wage rates based solely on differences in “employment status” (e.g., full‑time vs. part‑time, permanent vs. temporary).
Under the new rules, an employer must not pay a lower rate of wages to one employee than another if all of the following criteria are met:
The analysis is substance‑based, emphasizing actual job duties rather than job titles or classifications. Additionally, the regulations adopt a broad definition of “industrial establishment,” which can extend beyond a single...
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