Pay Equity Commission :: The Space Toy Co. Case Study :: Tools - Terms of Reference for a Pay Equity Committee

Employers can use the following sample to create their own "Terms of Reference" document.

Mission

To help create a work environment that promotes equality and fairness for all jobs, with sensitivity to issues around gender bias and the undervaluing of female job classes, through policy and administration that is seen as necessary, effective and fair.

Purpose of the Pay Equity Committee

To receive applications for review of pay equity situations or questions; to evaluate jobs; to take measures to resolve employee concerns; and to recommend outcomes or solutions to help resolve pay equity issues for employees of the Space Toy Co..

Goal

To ensure that the work of the Space Toy Co.'s employees is valued in a gender-neutral way and compensated fairly.

Accountability

The Pay Equity Committee is accountable to the management of the Space Toy Co. and reports through the Committee Secretary.

Long Term Objectives

To maintain pay equity for the employees of the "Space Toy Co. - Toronto Establishment", and ensure compliance with the Pay Equity Act in a timely and practical manner.

Intermediate Objectives

To meet the long term objectives, the Pay Equity Committee will:

Establish policies and guidelines for an efficiently run Pay Equity Committee;
Train new committee members on all matters relating to pay equity;
Conduct meetings to review any "Application for Position Review" forms submitted by employees;
Meet with the applicant(s) and a management representative on the question(s) or concern(s) raised and decide on steps to follow;
Review applications, re-evaluate job information when needed, or follow other avenues to address issues before the Committee;
Meet with applicant, supervisor and management representative with results;
Make final decision by consensus;
Take any action necessary to close the matter, i.e. recommend retroactive pay equity adjustments where required;
Minutes of meetings will be taken and all Committee information will be retained at the Space Toy Co. head office.

Composition

The Pay Equity Committee will comprise five members: one Management Representative, one Human Resources Representative, two Staff Representatives and one Chair. Any member from the above areas (except the Chair) may designate an alternate representative to attend meetings.

Chair

The Chair, a non-voting member, shall be appointed by the Committee through a voting process and will act as a neutral facilitator.

Protocol/Decision-Making

Pay Equity Committee members will endeavor to resolve any outstanding differences resulting from objections and strive for consensus. Consensus is reached when all committee members agree with the decision. The Chair will decide in the event of non-agreement. In order to carry on business, at least four (4) members must be at the meeting. While consensus-building is the best way to decide, representative voting may be appropriate on less important issues - a threshold of 75% will apply when consensus cannot be reached for minor issues.

Meetings

The timing and frequency of meetings will depend on the demand and will be decided by the Committee as required.

Finances

No member of the Pay Equity Committee shall be penalized in salary because of time spent on activities relating to the work of the Committee. Any expenditure of funds necessary to the function of the Committee shall be paid for by the Space Toy Co..

Reporting

The Pay Equity Committee shall report to management of the Space Toy Co., through minutes prepared by the Secretary no later than one week following a scheduled meeting.

Confidentiality

Representatives of the Pay Equity Committee shall respect the confidentiality of any confidential information or materials to which they have access. Any disclosure shall be limited to those who have a need to know. Should an applicant decide to withdraw an application in order to protect his or her anonymity, the Committee shall respect this decision.

Notes

The Secretary will take notes on evaluation details and results, decisions made and actions recommended. A summary of these decisions and actions will be circulated to Committee representatives by email within one week of the meeting.

Files

The Pay Equity Committee Secretary shall maintain suitable records of concerns, complaints, findings, recommendations, decisions and actions which shall then be accessible to Committee representatives and the applicants to whom these records apply.

The Pay Equity Act

As there is no time limit on making complaints under the Pay Equity Act, all files and information contained herein shall be retained, stored and archived by the Space Toy Co..

Terms of Reference for a Pay Equity Committee

Sample