DEI Guide for Canadian Employers: Compliance and More

It is an employer’s responsibility to ensure that every one of their employees feel accepted, recognized and valued in the workplace, and this should be a priority for every Canadian business.

Research consistently shows that robust DEI initiatives lead to higher productivity, better quality of work, and stronger team dynamics. But despite the demonstratable benefits of a diverse and equitable workforce, inequality persists in many sectors.

Discover how to build a truly inclusive environment, including moving beyond "checked boxes" and understanding the regulatory frameworks and cultural shifts driving today’s workplace.

What is DEI?

DEI stands for Diversity, Equity and Inclusion, and is a framework that seeks to promote fair, equitable treatment and full participation of all employees; particularly employees from current and historically underrepresented and disadvantaged groups.

Your employees should not feel that their identity and how they express themselves, whether their age, gender or race is a barrier to career progression or fair treatment in the workplace.

How workplace equality is regulated in Canada

Human rights legislations, charter rights and equity acts are the main forms of regulating equality in Canadian workplaces. These laws ensure every employee has the same opportunities, rights and benefits in the workplace.

On a granular level, workplace equality and non-discrimination are further divided into two tiers of human rights laws. Knowing which tier applies to your business is the first step towards compliance:

• Federally regulated workplaces: The Canadian Human Rights Act and the Employment Equity Act apply to federally regulated sectors like banking, telecommunications, and inter-provincial transportation. It prohibits discrimination based on race, gender, religion and ensures workplaces provide equal opportunities and accommodation for all staff. The Employment Equity Act also ensures employers to remove barriers that limit these four groups: women, people with disabilities, indigenous people and members of visible minorities.

• Provincially regulated workplaces: Most Canadian employees are covered by the human rights codes of their specific province or territory. They’re largely the same as federal principles and aim to prevent discrimination based on protected grounds such as race, religion, sex, sexual orientation, disability, and age.

In most provinces, the core principles of workplace equality are the same, but some jurisdictions have specific obligations and enforcements that are slightly different.

Ontario employee equality

In Ontario, the Ontario Human Rights Code (OHRC) provides primary protection for employee equality in the workplace.

The code mandates employers to create a workplace free from harassment and discrimination based on protected grounds like ethnic origin and citizenship.

In addition to the OHRC, the Pay Equity Act and Employment Standards Act also mandates employers to provide equal pay for equal work. This covers sex-based wage discrimination and equal pay for full vs part time workers who perform the same work.

British Columbia employee equality

In British Columbia, the BC Human Rights Code which protects employees from discrimination and harassment in the workplace based on protected grounds like ancestry, indigenous identity, race and color.

Another notable legislation in BC is the Pay Transparency Act (2023), which mandates employers in the province to publish pay transparency reports and prohibits them from asking job candidates about their pay history. This legislation is a step towards closing the wage gap for women, Indigenous people, and visible minorities.

Alberta employee equality

In Alberta, the Alberta Human Rights Act is the primary legal framework for protecting employees from discrimination in all aspects of employment, from recruitment to termination.

Alberta’s Act protects employees from unfair treatment based on protected grounds like race, religious beliefs, marital status amongst others. It also outlines regulations on providing equal pay for equal or similar work.

How employers can remain compliant

Staying in line with equality and diversity in the workplace requires more than a written policy. Employers must also take active steps to maintain a culture of accountability.

1. Regular policy audits: Continuously review your Diversity and Inclusion Policy and Employee Handbook annually to ensure they’re in line with current legislation in your jurisdiction.

2. Robust training: Offer your employees mandatory equality training that covers "hidden" biases, how to avoid them.

3. Duty to accommodate: As an employer, you have a legal "duty to accommodate" employees to the point of undue hardship. This includes making adjustments for religious observances, disabilities, or family status.

4. Transparent reporting: If your jurisdiction requires you to report on things like pay equity, then you must ensure you do so regularly and transparently.

5. Implement reporting processes: Make employees aware of how to report concerns about discrimination or harassment, and offer more than one confidential way to raise issues. Provide a simple outline of how concerns are reviewed and how accommodations can be requested.

6. Support employees’ religious and cultural observances: Let employees know your stance on flexibility around religious and cultural holidays with appropriate scheduling flexibility or leave, consistent with your duty to accommodate.

7. Proactive equity reporting: If you operate in a federally regulated sector, you may also have proactive equity and reporting expectations under federal frameworks; check the guidance that applies to your organization.

Get Expert Help with Your DEI Strategy Today

Navigating legislation around human rights laws and diversity in the workplace can be complex and failure to maintain an equal workplace can lead to legal complaints, high staff turnover, and damaged morale.

But it doesn’t have to be a daunting process. With 24/7, Canada-based expert HR support by your side, your compliance journey is simplified. BrightHR’s tools allow you to:

• Access and store your updated policies and handbooks securely in the cloud.

• Access our 24/7 Bright Advice Line for real-time guidance on sensitive HR issues.

• Use specialized modules to track diversity metrics and manage accommodation requests.

This guide provides general information for Canadian workplaces. For specific obligations or further assistance, book a demo today.