The Act provides for one enforcement mechanism: mandatory employers' reports. If employers fail to report, they are liable to a fine "not exceeding fifty thousand dollars." The reports are also provided to the Canadian Human Rights Commission who may "choose to use" the information provided to initiate an investigation. In addition to the annual report, the employers are also required to prepare an annual employment equity plan with goals and timetables and to retain such a plan for a period of at least three years. Unlike the annual report, however, employers are not required to submit this equity plan to the government and no penalty is provided for failure to prepare and implement a plan.

Every three years, starting in 1991, the Parliamentary Committee will review the effectiveness of the legislation. The Employment Equity branch is in the preliminary phases of developing a plan for the review. The objective of the Federal Contractors Program, which came into effect on October 1, 1986, is to "ensure that federal contractors who do business with the Government of Canada achieve and maintain a fair and representative workforce." The program, which is not legislated but rather a federal government policy, applies to federal government suppliers of goods and services with 100 or more employees bidding on government contracts worth $200,000 or more. Contractors are required to "implement employment equity as a condition of the bid." A signed certificate of commitment is a pre-condition to the validation of a bid and once signed, immediate implementation is expected. Eleven program criteria for employment equity implementation accompanies the certificate.

According the Neil Gavigan, Acting Director of the Federal Contractors Program, the policy is not legislated since companies are provincially regulated and therefore it is "inappropriate to legislate them federally." Secondly, said Gavigan, "legislation gives government power; in this case the government had the power to put the policy in place."

"Flexibility" is identified as a key element of the Federal Contractors Program according to the Federal Contractors' Bulletin (October 1988) issued by Employment and Immigration Canada. In other words, employment equity planning and management are left in the hands of the contractor. The Federal Contractors Program makes recommendations, then it is up to the employer to establish a plan consistent with good management practices which meets the organizations' particular operational needs and is readily integrated with existing management systems and procedures." The enforcement of the program is "founded on the concept of contract compliance and particular consideration is given to an organization's good faith efforts to reach its objectives." Failure to meet the requirements of the Contractors Program does not result in the loss of a contract but only means that such a firm will be removed from the bidding process in the future.