doing business in canada - Davies Ward Phillips & Vineberg LLP

displacement, laying-off, suspension, dismissal or conditions of employment of a person or in the establishmentof categories or classes of employment. The prohibited grounds are race, colour, sex, pregnancy, sexualorientation, civil status, age (except as provided by law), religion, political convictions, language, ethnic ornational origin, social condition, handicap, or the use of devices to palliate a handicap. However, the Charterspecifies that distinction, exclusion or preference based on the aptitudes or qualifications required foremployment, or justified by the charitable, philanthropic, religious, political or educational nature of a non-profitinstitution or an institution devoted exclusively to the well-being of an ethnic group is deemed nondiscriminatory.It also provides that every employer must pay equal wages to every employee performingequivalent work at the same place without discrimination on prohibited grounds.Québec's Commission des droits de la personne et des droits de la jeunesse investigates complaints ofdiscrimination and acts as a conciliator between the parties. If conciliation fails, the matter may go tonegotiated settlement or before an arbitrator or, if recourse to such remedies is not agreed to by the parties, toa hearing before the Tribunal des droits de la personne. The Tribunal may impose any remedial measures,including the reinstatement of a worker when such outcome would be fair and expedient under thecircumstances.PAY EQUITYIt is illegal in every province in Canada to pay a woman less for doing the same job as a man.Ontario and Québec each have adopted, through a Pay Equity Act, the principle of equal pay for work of equalvalue. Women in "female job classes" who perform jobs of similar value to employees in "male job classes" havethe right to salary readjustments.In Ontario, the Act applies to all private sector employers who employ ten or more employees and all employersin the public sector. However, in the private sector certain provisions of the Ontario Act, requiring an employerto devise a pay equity plan, apply only to employers with 100 or more employees. In Québec, the Act applies toprivate and public sector employers with ten employees or more. Employer obligations vary depending on thenumber of employees and include devising a pay equity plan if the employer employs 50 or more employees andsetting up a pay equity committee if it employs 100 or more employees.EMPLOYMENT EQUITYThe Employment Equity Act applies to federal sector employers only. The legislation is an "affirmativeaction/hiring quota" system designed to encourage employers to hire and promote women, aboriginal people,the disabled and visible minorities. Certain non-federal sector employers must comply with the EmploymentEquity Act in order to obtain federal contracts.EMPLOYMENT INSURANCEEmployers and employees in Canada are required by the Employment Insurance Act to contribute to theemployment insurance account administered by the federal government. Employee premiums are calculatedeach year. For 2010, the employee premium is 1.73% (1.36% in Québec) of insurable earnings up to a maximumof $43,200 (so that the maximum employee premium in 2010 is $747.36 ($587.52 in Québec)). The employermust pay a premium equivalent to 1.4 times the employee's premium. The employer's contributions aredeductible for tax purposes as a normal business expense and may be reduced if the employer supplies a salaryinsurance scheme to its employees.Unemployment insurance benefits are paid to employees who lose their jobs due to layoff or termination.Employees on maternity leave, parental leave, or absent due to illness are also covered.58 Employment Law