The question of whether an employer can pay a wage higher than specified in a collective agreement in the construction sector is far from trivial. In a highly competitive industry where skilled labor is constantly in demand, some employers may be tempted to improve working conditions in order to attract or retain workers.
However, such an approach raises significant legal issues. The compensation of workers in the construction industry is strictly regulated by the Act respecting labor relations, vocational training, and workforce management in the construction industry (Act R-20), as well as by the sector-based collective agreements derived from it. These rules are designed, in particular, to ensure the protection and uniformity of wage conditions for workers subject to the system. In this context, the main question remains: can an employer, under certain circumstances, improve wage conditions without violating Act R-20 and the sector-based collective agreements?
Wage protection under Act R-20
One of the main objectives of Act R-20 is to protect the wages of workers performing work subject to this regime. This protection stems from the public policy nature of the law, which means that it is strictly prohibited to pay wages lower than those provided for in the applicable sector-based collective agreements.
For the purposes of Act R-20, the concept of wages is defined broadly. It includes compensation paid in cash, as well as allowances and benefits with a monetary value as determined by a collective agreement. Thus, wages can take various forms: the hourly rate applicable to a trade, overtime rates, travel allowances, vacation pay, and paid holiday pay. They may also include various bonuses, such as the foreman’s bonus, the crew leader’s bonus, and the bonus for work performed at high altitudes.
A careful review of the wording of the provisions in the applicable sector-based collective agreement is therefore essential to determine what constitutes wages and to ensure that the employer’s practices comply with the framework established by Act R-20.
Applicability to Construction Projects and Sectors of the Construction Industry
Act R-20 can cover a wide variety of construction projects. In fact, in section 1(f), defines the term “construction” as including, in particular, work related to the foundation, erection, maintenance, renewal, repair, alteration, and demolition of buildings and civil engineering works carried out on the construction site itself and vicinity including the previous preparatory work on the ground.
Thus, construction work on a single-family home, a restaurant, a school, or a factory, as well as the maintenance and repair of bridges or roads, generally constitutes work subject to Act R-20. Whether work is subject to the Act depends on the nature of the work performed. When work is subject to the Act, it necessarily falls within one of the sectors of the construction industry. In this regard, the industry is divided into four sectors:
- Residential
- Institutional and commercial
- Industrial
- Civil engineering and road construction
This sector-based structure, established under Act R-20, allows for the negotiation of separate collective agreements between representative employer and labor associations for each sector. Each sector is governed by a collective agreement that sets, among other things, the applicable wages based on the nature of the work performed. For example, the construction or renovation of a restaurant falls under the institutional and commercial sector, which means that the employer must pay the wages provided under the collective agreement applicable to that sector.
The Role of the Commission de la construction du Québec
The Commission de la construction du Québec (CCQ) is the body responsible for administering Act R-20 and ensuring compliance with the working conditions set forth in sector-based collective agreements, particularly with regard to wages. As such, it has the authority to conduct audits, inspections, and investigations to determine, among other things, whether employers have paid the wages required by applicable collective agreements. In carrying out its duties, the CCQ may require the production of documents, such as contracts, invoices, accounting books, payroll records, and workers’ time cards. It may also request any relevant information related to these documents or the nature of the work performed.
When irregularities are found, the CCQ may intervene to compel the employer to rectify the situation. It may, if necessary, file a civil lawsuit to recover the amounts owed on behalf of the affected workers. In certain situations, it may also recommend criminal prosecution in the event of a violation of Act R-20, one of its regulations, or a collective agreement. Thus, the issue of wage compliance falls directly within its jurisdiction. The CCQ has broad powers to ensure compliance with Act R-20 and sector-based collective agreements.
Sector-based Collective Agreements and the Issue of Paying a Higher Wage
Sector-based collective agreements establish working conditions applicable when the work performed is subject to Act R-20. These conditions must be respected by the employer, and their scope varies depending on the sector of the construction industry. In the residential sector, Article 31.02 of the 2025–2029 collective agreement stipulates that the working conditions “constitute a minimum that must be met.” An employer may pay a higher wage than provided under this agreement, but never a lower one. This flexibility allows the employer, when necessary, to offer more favorable wage conditions in order to attract or retain skilled labor.
In the institutional, commercial, and industrial sectors, as well as civil engineering and road construction, the 2025–2029 collective agreements stipulate instead that “this agreement constitutes a minimum and a maximum with regard to normative and monetary conditions.” In these sectors, compensation must in principle correspond to the sector in which the work is performed and comply with the conditions set forth in an applicable collective agreement. For example, an employer may not pay travel expenses when no travel has taken place in accordance with the terms specified in the collective agreement, even if the objective is to attract workers. It can be inferred that these collective agreements pursue specific objectives: ensuring uniform and transparent application of working conditions, preserving sector stability, and preventing any form of wage competition that could affect the distribution of the workforce.
Conclusion
In the construction industry, Act R-20 and sector-based collective agreements establish mandatory rules regarding wages. It is always prohibited to pay wages lower than the conditions set forth in the applicable collective agreement. However, in the residential sector, these conditions constitute a minimum, allowing the employer to offer a higher wage when circumstances warrant it. Conversely, in the institutional, commercial, and industrial sectors, as well as in civil engineering and road construction, collective agreements stipulate that wage conditions constitute both a minimum and a maximum. The fundamental rule is that wages must strictly correspond to the sector in which the work was performed.
Before offering compensation higher than provided under an applicable collective agreement, an employer must exercise caution and due diligence. Depending on the circumstances, irregularities may result in tax, criminal, or civil consequences, and may even lead to an unfavorable decision regarding the employer’s license.
If you have any questions or would like information regarding the application of Act R-20, its regulations, and collective agreements in the construction industry, please contact our Construction Department team.
