.alx *,.alx *::before,.alx *::after{box-sizing:border-box}
.alx h2{:clamp(1.15rem,3vw,1.45rem);023054;font-weight:700;margin:2rem 0 .7rem;:1.3}
.alx h3{:clamp(.98rem,2.5vw,1.1rem);023054;font-weight:600;margin:1.4rem 0 .4rem}
.alx p{margin:0 0 1.1rem}
.alx a{023054;text-decoration:underline}
.alx ul{margin:0 0 1.1rem 1.2rem;padding:0}
.alx ul li{margin-bottom:.4rem;:.97rem}
.alx .updated{:.82rem;5a6b78;font-weight:600;text-transform:uppercase;letter-spacing:.05em;margin-bottom:1.1rem}
.alx .accent{background:#fff;border:1px solid #d0dce6;border-left:4px solid #023054;border-radius:0 6px 6px 0;padding:16px 18px;margin:1.8rem 0;:.95rem;023054;font-weight:600;:1.6}
.alx .case-meta{background:#fff;border:1px solid #d0dce6;border-radius:8px;padding:18px 20px;margin:1.8rem 0;display:grid;grid-template-columns:repeat(auto-fit,minmax(160px,1fr));gap:14px}
.alx .meta-label{:.72rem;font-weight:700;023054;text-transform:uppercase;letter-spacing:.06em;margin-bottom:4px}
.alx .meta-val{:.9rem;36454f;font-weight:600}
.alx .answer-box{background:#fff;border:2px solid #023054;border-radius:8px;padding:20px 22px;margin:1.8rem 0}
.alx .ans-label{:.75rem;font-weight:700;023054;text-transform:uppercase;letter-spacing:.08em;margin-bottom:8px}
.alx .ans-text{:clamp(.95rem,2.5vw,1.1rem);023054;font-weight:700;:1.5;margin-bottom:10px}
.alx .answer-box p{:.9rem;36454f;margin:0;:1.65}
.alx .tbl-wrap{overflow-x:auto;margin:1.4rem 0 2rem;-webkit-overflow-scrolling:touch}
.alx .std-table{width:100%;border-collapse:collapse;:.88rem;min-width:460px}
.alx .std-table th{background:#023054;fff;text-align:left;padding:10px 12px;font-weight:600}
.alx .std-table td{padding:10px 12px;border-bottom:1px solid #d0dce6;vertical-align:top}
.alx .std-table tr:nth-child(even) td{background:#f5f8fb}
.alx .checklist{background:#fff;border:1px solid #d0dce6;border-top:3px solid #023054;border-radius:10px;padding:20px 22px;margin:1.6rem 0 2rem}
.alx .checklist h3{margin:0 0 10px;:1rem}
.alx .checklist ul{margin:0 0 0 1.1rem}
.alx .checklist ul li{:.9rem;margin-bottom:.5rem}
.alx .faq{margin:1.5rem 0 2rem}
.alx .faq-item{border-bottom:1px solid #d0dce6;padding:14px 0}
.alx .faq-item:first-child{border-top:1px solid #d0dce6}
.alx .faq-q{:.95rem;font-weight:600;023054;margin:0}
.alx .faq-a{:.9rem;36454f;margin:8px 0 0;:1.65}
.alx .related{background:#f5f8fb;border-left:4px solid #b0c4de;border-radius:0 6px 6px 0;padding:18px 20px;margin:1.8rem 0}
.alx .related h3{margin:0 0 8px;:.95rem}
.alx .related ul{margin:0 0 0 1.1rem}
.alx .related ul li{:.9rem;margin-bottom:.35rem}
.alx .disclaimer{:.85rem;5a6b78}
.alx .two-col{display:grid;grid-template-columns:1fr 1fr;gap:16px;margin:1.4rem 0 2rem}
.alx .two-col .checklist{margin:0}
@media (max-width:700px){.alx .two-col{grid-template-columns:1fr}}
@media (max-width:600px){.alx{:15px}.alx .case-meta{grid-template-columns:1fr 1fr}.alx .accent{padding:14px}.alx .answer-box{padding:16px}}
Starting October 20, 2026, a federally regulated employer can no longer pay a part-time or temporary employee a lower wage rate than a full-time or permanent colleague doing substantially the same work, just because of their employment status. The rule has been sitting in Part III of the Canada Labour Code since 2018. It finally has teeth because the regulations that make it work, SOR/2026-75, come into force that day.
Published October 2026
For a bank teller on a three-day schedule, or a seasonal baggage handler at an airline, this can mean a raise. For the employer, it means checking payroll now, before an employee asks the question in writing. This article covers who the rule applies to, what counts as a fair comparison, the pay gaps that are still allowed, how wage review requests work, and what employers and employees should do next.
Employees can ask in writing for a wage review, and the employer must answer in writing within 90 days. Any increase is retroactive to the date of the request, and a gap can only be closed by raising the lower rate. Provincially regulated employers in Ontario and BC are not affected, and existing collective agreements get until October 20, 2028.
Who it covers, and who it does not
The rule applies to federally regulated private-sector employers and federal Crown corporations, whatever their size. That includes banks, airlines and airports, railways and interprovincial trucking, telecommunications and broadcasting, ports and shipping, Canada Post, and most First Nations band councils. The federal public service is not covered.
Most workers in Ontario and British Columbia are not covered. If you work for a retailer, a restaurant, a hospital or a provincial construction company, your employment standards come from Ontario’s Employment Standards Act, 2000 or BC’s Employment Standards Act, and neither province requires equal pay based on employment status. Ontario briefly did: the rule arrived in April 2018 under Bill 148 and was repealed by Bill 47 effective January 1, 2019. Ontario still requires equal pay for men and women doing substantially the same work. That leaves a bank branch in Toronto and the coffee shop next door playing by noticeably different rules on part-time pay.
Which side of the line you are on depends on what the business does, not where it is located. A Toronto trucking company that only hauls within Ontario is provincial; one that crosses into Quebec is federal. Our article on Bill C-39 and the Canada Labour Code opens with a quick test for whether your organization is federally regulated.
What the rule requires
An employer cannot pay a lower wage rate because someone is part-time rather than full-time, or temporary rather than permanent. Full-time status is taken from the collective agreement, then the employment contract, then employer policy. If none of them defines it, the default is an average of 30 hours or more a week. A temporary employee is anyone hired on a fixed-term, seasonal, casual or irregular basis. Interns are covered too, although student interns are excluded.
The rule only applies when the two employees are true comparators. All five of these have to line up:
| Test | What it means in practice |
|---|---|
| Same kind of work | The day-to-day duties are largely, though not entirely, the same. Job titles do not decide it. |
| Same skill, effort and responsibility | Measured by what the job requires, not by the person doing it. |
| Similar working conditions | Noise, temperature, shifts and hazards are similar, though not identical. |
| Same industrial establishment | Every part of the business in the same Employment Insurance economic region, not just the same building. |
| Same type of wage rate | Hourly is compared with hourly. An hourly worker cannot compare themselves with a colleague paid by commission, mileage or piece rate. |
The last two tests catch people out. Because the comparison runs across an EI economic region, a part-time agent at one call centre may be able to compare herself with a full-time agent at another site the employer runs in the same region. Sites in the same metropolitan area are often in one region, but check the EI region map rather than assuming. For transportation workers, the relevant terminal, base or port usually decides where they belong, and remote employees are placed using a look-back to where they last reported in person or a test of where they meet their supervisor.
When a pay gap is still allowed
A difference in wage rates is lawful if it comes from one of these:
| Exception | What it covers |
|---|---|
| Seniority, merit or production system | A formal system applied to everyone in the comparison, using objective criteria or set output thresholds. |
| Red-circling | Keeping an employee’s higher rate after a reclassification or demotion to a lower-paid position. |
| Labour shortage | A premium paid because of ongoing difficulty recruiting or keeping qualified workers. |
| Geography | A difference based on where the work is performed. |
| Travel status | A different rate paid to an employee while on travel status. |
The employer has to put the details of any pay system in writing or make them readily available. A seniority grid written up the week after an employee complains will be a hard sell.
How wage review requests work
An employee who thinks they are paid less because of their employment status can ask the employer in writing to review their wage rate. The employer then has 90 days to respond in writing, either confirming the rate has been increased or explaining why the current rate complies with the Code. If the rate goes up, the increase is retroactive to the date the request was made.
An employer cannot dismiss, suspend, demote, discipline or otherwise penalize an employee for asking, and the request cannot count against them in decisions about training or promotion. The employer must keep each request, its response, and the details of any pay system it relies on. Breaches can lead to administrative monetary penalties.
Employees can also complain to the federal Labour Program. How a complaint fits alongside a wage review request is new, and the guidance is still settling, so check the Labour Program’s interpretation guide, IPG-122, Equal Treatment, or get advice before deciding which route to take.
Temporary help agencies
A parallel rule applies to federally regulated temporary help agencies. The agency must pay its assignment workers at least what the client pays its own employees for substantially the same work, and the client’s pay systems are the ones used to judge whether a difference is justified. Most agencies are provincially regulated, so a federal employer using agency staff should ask its agency where it stands.
Unionized workplaces get two more years
If a collective agreement in force on October 20, 2026 allows different pay by employment status, those terms can stay in place until October 20, 2028. After that, the Code wins. Unions and employers bargaining in the next two years should treat status-based wage tiers as temporary and plan how they will be phased out.
What to do now
Employers
- List part-time, casual, seasonal and fixed-term staff with their wage rates, and line them up against full-time, permanent employees in the same role and EI region.
- Where there is a gap, write down what explains it and check that the explanation fits a recognized exception. “We have always paid part-timers less” is not one.
- Close unexplained gaps by raising the lower rate.
- Put your seniority, merit or production systems in writing and make them available to staff.
- Decide who receives wage review requests, who decides, and how you will answer in writing within 90 days.
- Brief managers on reprisal, and keep every request and response on file.
- If you use agency workers, ask the agency whether it is federally regulated.
Employees
- Check whether your employer is federally regulated before relying on the rule.
- Identify the full-time or permanent role you are comparing yourself with, and how your duties match.
- Make your request in writing, by email, so the date is on record. Any increase runs from that date.
- Keep it factual: the comparator role, the matching duties, and when you noticed the gap.
- Expect a written answer within 90 days.
- If you are disciplined, let go or pushed out soon after asking, get advice quickly. That timing matters.
Frequently asked questions
When do the equal pay rules for part-time and temporary workers start?
The equal treatment provisions of the Canada Labour Code come into force on October 20, 2026, when the supporting regulations, SOR/2026-75, take effect. Collective agreements already in force that allow different pay by employment status are protected until October 20, 2028.
Does the equal pay for part-time workers rule apply in Ontario or BC?
Only to federally regulated employers, such as banks, airlines, railways, interprovincial trucking, telecommunications and Canada Post. Provincially regulated employers in Ontario and British Columbia are not covered, and neither province currently requires equal pay based on employment status.
Who counts as a comparator for equal pay?
The two employees must do substantially the same kind of work, requiring substantially the same skill, effort and responsibility, under similar working conditions, in the same industrial establishment, and be paid on the same type of wage rate. The industrial establishment covers every part of the business in the same Employment Insurance economic region.
Can an employer still pay part-time staff less?
Only where the difference comes from a recognized exception: a seniority, merit or production system applied to everyone in the comparison, red-circling after a reclassification or demotion, a premium for an ongoing labour shortage, geography, or travel status. The employer must put the details of any pay system in writing or make them readily available.
How long does an employer have to answer a wage review request?
The employer must respond in writing within 90 days, either confirming the wage rate has been increased or explaining why the current rate complies with the Code. If the rate is increased, the increase is retroactive to the date of the request.
Can an employer fix a gap by cutting full-time pay?
No. An unexplained gap can only be closed by raising the lower rate. Reducing the pay of full-time or permanent employees to match is not a way to comply.
How Achkar Law helps
Achkar Law advises federally regulated employers in Ontario and British Columbia on whether the Canada Labour Code applies to them, on pay audits under the new equal treatment rules, and on setting up a defensible wage review process. We also act for employees whose wage review requests are ignored or answered with reprisal. Learn more about our employment standards compliance services for employers.
This article is general information about the federal equal treatment rules and is not legal advice. It reflects the Canada Labour Code and SOR/2026-75 as of October 2026, and the Labour Program’s guidance on these provisions may develop after they take effect. An employment lawyer can advise on your specific situation.
{“@context”: “https://schema.org”, “@type”: “FAQPage”, “mainEntity”: [{“@type”: “Question”, “name”: “When do the equal pay rules for part-time and temporary workers start?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “The equal treatment provisions of the Canada Labour Code come into force on October 20, 2026, when the supporting regulations, SOR/2026-75, take effect. Collective agreements already in force that allow different pay by employment status are protected until October 20, 2028.”}}, {“@type”: “Question”, “name”: “Does the equal pay for part-time workers rule apply in Ontario or BC?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Only to federally regulated employers, such as banks, airlines, railways, interprovincial trucking, telecommunications and Canada Post. Provincially regulated employers in Ontario and British Columbia are not covered, and neither province currently requires equal pay based on employment status.”}}, {“@type”: “Question”, “name”: “Who counts as a comparator for equal pay?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “The two employees must do substantially the same kind of work, requiring substantially the same skill, effort and responsibility, under similar working conditions, in the same industrial establishment, and be paid on the same type of wage rate. The industrial establishment covers every part of the business in the same Employment Insurance economic region.”}}, {“@type”: “Question”, “name”: “Can an employer still pay part-time staff less?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Only where the difference comes from a recognized exception: a seniority, merit or production system applied to everyone in the comparison, red-circling after a reclassification or demotion, a premium for an ongoing labour shortage, geography, or travel status. The employer must put the details of any pay system in writing or make them readily available.”}}, {“@type”: “Question”, “name”: “How long does an employer have to answer a wage review request?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “The employer must respond in writing within 90 days, either confirming the wage rate has been increased or explaining why the current rate complies with the Code. If the rate is increased, the increase is retroactive to the date of the request.”}}, {“@type”: “Question”, “name”: “Can an employer fix a gap by cutting full-time pay?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “No. An unexplained gap can only be closed by raising the lower rate. Reducing the pay of full-time or permanent employees to match is not a way to comply.”}}]}
The post Equal Pay for Part-Time and Temporary Workers: The October 20 Canada Labour Code Change appeared first on Achkar Law.