Canada Implements Equal Pay Rules for Non-Permanent Staff

New Canada Labour Code regulations mandate pay equity for part-time, temporary, casual, and seasonal workers nationwide.

Updated on Oct. 21, 2026 in Employment

Isometric editorial illustration of balanced geometric metal forms, symbolizing national labor pay parity regulations. — Canada's new federal labor regulations require employers to provide pay parity for part-time, temporary, and seasonal staff effective October 2026. AI Illustration. Upload story photo >

Live Poll

Should employers be required to pay part-time and full-time workers the same rate for identical work?

Federally regulated employers in Canada must now ensure equal pay for employees regardless of their employment status. The new rules, which took effect October 20, 2026, aim to eliminate wage gaps in sectors including banking, airlines, and telecommunications.

Why it matters

These regulations address systemic wage disparities for part-time and non-permanent workers by requiring pay parity for substantially similar work. Employers are now prohibited from basing wage rates on employment status unless legitimate criteria like seniority or merit apply.

Affected sectors include telecommunications, which previously saw an average hourly wage gap of $16.03, and banking, where the gap reached $12.79. Employers must now respond to employee pay review requests within 90 days.

The players

Statistics Canada

This is the national statistical agency that produces data on the Canadian economy, society, and environment.

Sherrard Kuzz LLP

This is a Toronto-based law firm that provides legal counsel on employment and labour relations matters.

The details

The regulations apply to private-sector industries such as rail, interprovincial trucking, and ports, though the federal public service is excluded. While companies cannot lower existing wages to meet these standards, conflicting terms in current collective agreements will remain valid for up to two years.

2023: Statistics Canada measured wage gaps in various sectors.
October 8, 2026: Bill C-39 cleared second reading.
October 19, 2026: Sherrard Kuzz LLP posted guidance on regulation compliance.
October 20, 2026: Equal treatment rules took effect.
Next 2 years: Existing collective agreement terms may prevail.

Macro View

These regulations represent a shift in the application of the Canada Labour Code, moving from a standard framework to one that explicitly addresses the status of non-permanent labour. This change mirrors recent legislative efforts to harmonize worker rights in an increasingly flexible labour market.

Part-time and temporary workers may now request a formal pay review if they believe their compensation is unfairly lower than that of full-time counterparts for similar work. Employers must provide a response within 90 days, with any awarded raises being retroactive to the initial request date.

The takeaway

These changes reflect a growing effort to ensure equitable compensation for non-permanent staff in major industries. Workers in these sectors should review their compensation systems and verify their eligibility for pay reviews under the new federal guidelines.

What happens next

Employers have a 90-day window to respond to formal written requests for pay reviews from employees. Additionally, collective agreement terms that conflict with the new regulations will expire or be renegotiated within the next two years.