HR In Five

The daily five-minute brief on the business of HR.

Daily brief · 5 min
0:00 / 3:55

The day's stories

01

Federal equal-treatment wage rules push employers toward pay audits

HRD Canada reports new federal equal-treatment wage rules put the onus on employers to document pay decisions, making a pre-enforcement audit the practical first step for HR and compensation teams.

New federal equal-treatment wage rules shift the burden onto employers to show how and why pay decisions are made, according to HRD Canada. One practitioner quoted in the report frames the first step as: "Gather what your compensation practices and policies are, document how you do things and why we do it that way." HRD Canada indicates the practical implication for HR and compensation teams is a documentation review ahead of enforcement, rather than after a complaint is filed. The scope and timing of enforcement activity are not detailed in the report.

02

UK Supreme Court lowers causation bar in part-time worker case

Personnel Today reports the UK Supreme Court held that part-time status need only be an effective cause of less favourable treatment, not the sole cause — a lower threshold for claimants.

Full story

The UK Supreme Court has ruled that part-time status need only be an effective cause of less favourable treatment, and not the sole cause, according to Personnel Today. The holding lowers the causation threshold a claimant must clear when challenging differential treatment. Personnel Today's report suggests employers with mixed full- and part-time workforces may need to factor the standard into reviews of benefits and scheduling. The ruling's wider application to specific benefit structures has not yet been tested in subsequent cases.

Also moving today

  • Arbitrator strikes down TTC random drug testing, reinstates fired bus operator HRD Canada
  • ‘You’re too old to know this’: Zillow faces bias claim from White man HR Dive
  • After leave, return-to-work approaches should be ‘early, coordinated and sustained,’ DOL official says HR Dive
Read the transcript
Welcome in, today is Thursday, August thirteenth, and we begin with new federal equal treatment wage rules in Canada, reported by HRD Canada, that shift the documentation burden onto employers. HRD Canada reports that federally regulated employers have until October twentieth to prepare for new equal treatment wage rules amending the Canada Labour Code. The rules prohibit paying employees who perform the same or substantially similar work at different rates based solely on their employment status. Per that reporting, employees paid on the same basis, hourly or by commission, must receive the same wage rate as colleagues doing that work. The federal government published the amending regulations on May sixth. Because the onus sits with the employer to show why a differential is lawful, the practical first step lands on compensation teams: a documented pay audit before enforcement, not after. Michelle McKinnon, an employment lawyer who has advised employers through similar provincial exercises, tells HRD that outside lawful and justified exceptions, employees paid on the same basis doing the same work should generally be paid the same. The same account reports she expects the change could prompt a wave of employee-initiated wage reviews. Her advice, per that reporting: gather what your compensation practices and policies are, and document how you do things and why you do it that way. Practitioner reaction leans toward concern about timing rather than the rules themselves. Some flag that mid-season wage adjustments under the revised federal rate methodology land as unbudgeted cost increases on contracts already priced, with only parts of the country getting any transition grace period. Also today, a causation test just got easier for claimants to meet in the United Kingdom. Personnel Today reports that the UK Supreme Court has ruled part-time status need only be an effective cause of less favourable treatment, and not the sole cause. That account carries the holding rather than the case detail. A lower causation bar reaches any employer running a mixed full- and part-time workforce, which puts benefits design and scheduling rules back onto the review list. Practitioner reaction there reads more operational than doctrinal. Some employment advisers frame the ruling as a payroll-audit trigger, urging employers to find where fixed hour thresholds are hard-coded into contracts and payroll settings, and to estimate what recent years would have cost under the looser test. The early concern in that reading is retrospective exposure rather than future policy. Now, a few more headlines moving the trade today. An arbitrator has struck down the TTC's random drug testing and reinstated a fired bus operator, HRD Canada reports, finding the test should never have happened. HR Dive reports Zillow faces a bias complaint from a White man that emphasizes alleged age-based mockery in meetings. The allegations are untested in court. One last headline. Return-to-work approaches should be early, coordinated and sustained, Labor Department official Julie Hocker said, per HR Dive, because the likelihood of return drops off significantly as the weeks go on.