Federal Contractors Program – Dual Jurisdiction Employers – IPG-087

1. Subject

Application of the Federal Contractors Program (FCP) requirements applicable to dual jurisdiction employers who are bidding on contracts issued by Canada.

2. Issue

This guideline provides direction on whether an organization that is subject to the Legislated Employment Equity Program (LEEP) can also be subject to the FCP in the event that a portion of its workforce is provincially regulated.

3. Background

The LEEP covers federally-regulated private sector employers, Crown corporations and other federal organizations that have at least 100 or more employees and are subject to the Employment Equity Act (the Act). LEEP’s mandate is to promote, support and enhance employment equity for four designated groups: women, Aboriginal peoples, persons with disabilities and members of visible minorities.

Employers that are subject to the LEEP have certain obligations and responsibilities under the Act. These employers are obligated to implement and report annually on employment equity to the Labour Program and are subject to audits conducted by the Canadian Human Rights Commission.

The FCP targets provincially-regulated contractors with a resident workforce in Canada of at least 100 or more permanent full-time and/or permanent part-time employees who have received a federal contract for goods and/or services that has a value of at least $1M or more. The FCP requires that contractors make all reasonable efforts to implement employment equity so that reasonable progress is made towards having full representation of the four designated groups within their workforce. Compliance assessments are conducted by the Labour Program one year after a contractor has been awarded a first contract valued at $1M or more. Subsequent assessments may also be conducted after three years. When it is determined that a contractor does not meet his/her obligations under the FCP, the contractor loses the right to bid on federal government goods and services contracts, standing offers or supply arrangements of any value. In order to be reinstated to the FCP, a contractor must implement employment equity in its workplace, inform the FCP of the implementation, and be found in compliance through a compliance assessment.

4. Considerations

The nature of a business determines whether it is subject to federal or provincial labour laws. However, some employers have business lines that fall under both federal and provincial jurisdictions, creating instances of dual jurisdiction where employers may have obligations under both the LEEP and the FCP.

The LEEP creates employment equity obligations for only that portion of an employer’s workforce that is federally regulated and the FCP applies to contractors’ employees under provincial legislation. However, some dual jurisdiction employers do not separate their workforce numbers when reporting under the LEEP due to the complex structure of their organization/workforce or their Human Resources structure and the undue hardship caused by attempting to separate the data.

Therefore, given that being subject to the LEEP is a statutory obligation for federally-regulated employers having 100 or more employees, dual jurisdiction employers will have the option of including both provincially and federally-regulated employees under the LEEP, or reporting each related portion of employees under the LEEP and the FCP.

5. Application of the Policy

When employers are dual jurisdiction and have obligations under the LEEP and the FCP, the Labour Program will contact the employers and request whether or not they prefer to report in one of the following methods:

1. Under the LEEP for all employees regardless of jurisdiction; or
2. Under the LEEP for that portion of the workforce that is federally, and under FCP for provincially-regulated employees under FCP requirements.

If at a later date an employer wishes to change the method of reporting, they must inform the Labour Program in writing.

Chantal Roy
Director General
Federal Programs Directorate
Employment and Social Development Canada – Labour Program