Contractors proposing an initial contract with the Canadian government for an estimated $1 million worth of goods and services (including taxes) must first certify their commitment to implement employment equity by signing the Employment Equity Implementation Implementation Agreement (LAB1168) before awarding a contract. In Canada, the Federal Contractors` Program (CPF) is managed by Employment and Social Development Canada, an agency of the federal government of Canada. The CPF requires provincial employers with 100 or more employees who apply on federal contracts of $1,000,000 (initially $200,000) or more to confirm that they will implement employment equity measures.  The CPF was founded in 1986 by a federal cabinet decision and not by statute.  Under the first Federal Contractors Program, all organizations with 100 or more employees who wish to offer more than $200,000 on federal contracts are required to implement an employment participation program and meet the requirements of the Federal Contractors Program. A contractor may be reinstated to the CPF after approval of the compliance check and be in compliance. The program applies to provincial contractors who: as soon as an eligible contract is awarded to the contractor, the contractor obtains a clear agreement to implement the employment capital number. The contractor is informed, through the work programme, that he is now subject to the FCP. As a result, the contractor is required to meet the requirements of the CPF. This obligation is ongoing. If a contractor is declared non-compliant or wishes to resign from the CPF, the contractor`s name is placed on the FCP Limited Eligibility to Bid List Footnote 1, the contractor`s agreement to implement the investment number is disabled and the contractor loses the right to offer federal government goods and services contracts, standing offers or delivery agreements of any value. Failure to comply with or resign from the FCP may also lead to the termination of the contract.
Under the renovated federal contractors program, our compliance with the following requirements is assessed every three years. The compliance assessment concludes with the verification of compliance or non-compliance. In the event of non-compliance, the contractor may refer the matter to the Minister of Employment, Personnel Development and Labour (Minister of Labour) and an independent assessor may be responsible for verifying the results. If the results of the independent audit indicate non-compliance, sanctions are imposed. Because the CPF is sometimes confused with the provisions of the Canadian Employment Equity Act, it is often referred to as the “law” to distinguish it from the CPF. The CPF is limited to provincial federally regulated suppliers (with the limits described above). On the other hand, the Canadian Employment Equity Equity Act applies only to federally regulated organizations, such as railways, airlines, telecommunications companies, banks, etc., whether or not they are federal suppliers.