Did you know that provincial businesses must have an employment equity program to enter into contracts with the Government of Canada valued at $ 1 million or more?

In order to encourage provincial businesses (not covered by the Canada Employment Equity Act) to do business with the federal government to have a representative workforce of the Canadian population, the Government of Canada has established 1986 Federal Contractors Program (FCP). This program was amended and simplified in 2013 to include the full representation in the workplace of the four groups designated in the Employment Equity Act: (i) women, (ii) women, Aboriginal peoples, (iii) persons with disabilities, and (iv) visible minorities.

The FCP applies to provincial businesses with a combined workforce of at least 100 permanent full-time and / or part-time employees in Canada who wish to bid or obtain a contract, standing offer or supply arrangement from federal government goods or services, valued at $ 1 million or more (including taxes). These companies must, before and with exception, sign a form entitled Agreement for the Implementation of Employment Equity. This form demonstrates his commitment to employment equity.

From the moment a company that has signed this form is awarded a contract or issuance of a standing offer by the federal government, it must comply with the requirements of the FCP and implement or maintain employment equity, and this, continuously. The requirements imposed on businesses by the FCP to achieve workplace equity are as follows: (i) collect and maintain workforce data, (ii) analyze the representation of the four designated groups within their workforce, (iii) compare the representation of designated groups with external representation and determine under-representation of designated groups, (iv) take appropriate measures to identify and remove barriers faced by designated groups, and (v) develop goals in the short and long term to reduce the gaps in representation.

To ensure compliance with these requirements, compliance assessments are conducted by Federal Labor Program officers. The first valuation takes place one year after the company was awarded the first contract worth more than $ 1 million, and the next one every three years. In the event of non-compliance, and if the company fails to take the appropriate corrective action, it may be placed on the CPF's eligibility list for limited eligibility and will lose its right to bid on the goods and services contracts, services, standing offers and supply arrangements with the Government of Canada, regardless of their value.

As a result, it is essential for Quebec companies with a workforce of at least 100 permanent full-time or part-time employees who wish to enter into contracts worth $ 1 million or more with the federal government to be aware of these obligations.

1.The FCP does not apply to contracts for the purchase or lease of real estate and construction.