Pay equity committees composed of employee and employer representatives concluded that no salary adjustment was required under the Québec Pay Equity Act. However, it was agreed to review the salary structure for some of the job classes and to apply the same criteria as those provided for in the Quebec Pay Equity Act to the resulting adjustments. As a result, retroactive salary adjustments for the period from November 21, 2001 to December 31, 2010 were paid in 2011, together with interest at the legal rate of 5%. Were the averaging rules in ss. 110.2 and 120.31 available? In responding negatively, CRA stated:
[T]he amounts paid … do not satisfy the definition of "qualifying amount" … because they are not received pursuant to an order or judgment of a competent tribunal, an arbitration award or a contract by which the payor and the individual terminate a legal proceeding.
The[se] agreements … are the result of a finding by the parties that there was a need to review the salary structure for certain job classes. That resulted in agreements between the employer and representatives of the various pay equity committees. As a result, employees will not be eligible for the treatment provided under sections 110.2 and 110.31 … .