CNESST audits: what Québec employers should expect and how your payroll data plays a starring role

Key Takeaways

• Any Québec employer with at least one employee must be registered with the CNESST.
• Audits can be triggered by a worker complaint or a proactive inspection — any business can be selected.
• Inspectors review salary registries, timesheets, and pay stubs to verify compliance with labour standards.
• Payroll records must be kept for six years.
• Penalties under Bill 101 have increased significantly — organized records are your best protection.

CNESST and audits – two terms that often make employers feel a twinge of apprehension when used in the same sentence. That is, until now! In this article we’ll be going over what you need to know about la Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST); its role, things to watch out for, what audits really entail and what you can do to best utilize your payroll data and adjust procedures to protect yourself from unexpected audits.

What we’ll cover in this article

Ready to learn more about well-organized payroll data as a prevention tool to CNESST audits? Here are your keys to success:

• What is the CNESST and what does it do?

• What triggers a CNESST audit and could it happen to me?

• What payroll records does the CNESST review, and what are the most common findings?

• Where does pay equity fit in?

• What are the consequences of non-compliance?

• Frequently asked questions about CNESST audits

• How can Québec SMBs stay audit-ready?
  

What is the CNESST and what does it do?

Business owners often automatically think that the CNESST is synonymous with workplace health and safety – and they are right, partially! The CNESST doesn’t just set and ensure that obligations for prevention and safety in a workplace setting are respected – they also cover labour standards and pay equity and manage their respective compliance audits and enforcement. They are the organization that was given the task, by the government of Québec, of promoting rights and obligations in the workplace and ensuring the respect of both employees and employers in the province. All employers in Québec with at least one employee must be registered with the CNESST*; in turn, insurance is provided to employers and workers in the case of workplace accidents or occupational disease.
* Page available in French only.

Hiring your first employee? You have 60 days from their first day of employment to register for the CNESST. Late registration fees would apply for those exceeding the 60-day grace period.

Employers are obligated to conform with Québec’s minimal work conditions which include: wages and pay, work schedule, annual vacation holidays, sick leaves, parental leaves, psychological or sexual harassment, terminations, layoffs, dismissals and resignations. The CNESST is the governing body in charge of making sure all employers in the province fulfill these obligations.

What triggers a CNESST audit and could it happen to me?

There are two main triggers for a CNESST audit – reactive (from complaints), proactive, or random (based in preventative measures). Being audited does not automatically mean that a business has committed an offense. With an increased objective geared towards prevention, the CNESST reviews its approaches and audit strategies every few years as outlined in their multi-year prevention and inspection plan*. Any business, regardless of size, could be audited by the CNESST.

Complaint-based audits

The most common CNESST audit trigger is due to a worker complaint. Employees can file complaints directly to the CNESST under a number of grounds including when they feel legislation or their worker rights have not been respected in the workplace.

Common worker complaint categories include, but are not limited to:

• Labour standard complaints: wages, leave entitlements, psychological or sexual harassment, dismissals or changes in employee status without just cause, prohibited practice, differentials in working conditions;
• Reporting hazardous health and safety situations (OHS), including injury, safe maternity practices and right of refusal to perform certain tasks;
• Pay equity issues;
• Fraudulent compensation claims*.

It’s important to note that workers are not the only ones able to submit a complaint to the CNESST. Employers, contractors, suppliers, companies or service providers are also able to denounce non-compliance by submitting a complaint. 

Preventative and proactive audits

Based on their intervention framework*, the CNESST conducts a planned program of compliance inspections in Québec workplaces. These proactive inspections are guided by multi-year prevention priorities and regional considerations. Their purpose is to promote consistent application of the Act Respecting Labour Standards and to promote a lasting culture of workplace compliance. Inspectors have the authority to enter any workplace, review documents, and require employers to correct any non-compliance identified.

Regardless of the trigger or reason for an audit, employers are obligated to cooperate — refusing access to the workplace or to documentation can result in penal proceedings.

What payroll records does the CNESST review, and what are the most common findings?

Once an audit has been started, CNESST inspectors explain to employers how the audit process works* and clarify what their role is.

For payroll-related audits, employers are often asked to share the following documentation:

• Salary registries
• Time sheets
• Punch cards
• Pay stubs

These documents allow auditors to verify many important elements, such as: wages, overtime, annual vacations and statutory holidays, employer registration systems, voluntary retirement savings plans, policies, etc. A workplace must also allow CNESST auditors access to any persons able to provide or confirm information related to the complaint.

Once the inspector has completed their analysis of the documents, they will inform the employer of the findings.

In the case where an employer is compliant, a letter with a notice of audit file closure is sent to the employer.

In the case where an employer does not fulfil their obligations, the inspector will produce either an inspection report or a letter with a notice of infraction in which are listed the items that do not meet the standards as dictated by the law. Included in the report is a correction plan and referrals to the applicable laws and regulations, as well as a date for these corrections to be carried out by the employer (set within a reasonable delay). Companies not fulfilling obligations within the allotted timeline are subject to fines and could have their name published* on the CNESST website.

Where does pay equity fit in?

Pay equity is still part of reality for businesses in 2026 with many provinces and territories making legislative changes requiring businesses to review policies and integrate better transparency practices. Québec is no exception.

Pay equity regulations aim to correct the gaps due to the under-valuation and under-remuneration of “female job categories” caused by gender discrimination.

Employers with an average of 10 or more employees are asked to:

• identify positions
• review various criteria, including responsibilities and conditions
• carry out comparisons between male and female job categories
• compare job class value including rate or scale of compensation and salary verifications
• determine and carry out corrections and compensation adjustments
• complete a pay equity plan as well as fill out and submit a DEMES* to the CNESST
• commit to carrying out a self-audit of the equity plan every 5 years.

How can Payworks help with pay equity compliance?

Pay equity compliance starts with having accurate, organized employee data — and Payworks makes that straightforward. Employees can securely and discreetly confirm their gender through an assigned task created directly in the platform, keeping the process professional and privacy-conscious. From there, Payworks’ report writer lets you pull occupation, gender, and wage or salary data in one place, giving you the documentation you need to assess and demonstrate pay equity across your workforce.

For more information on pay equity, including tools and guides produced by the CNESST, visit: https://www.cnesst.gouv.qc.ca/fr/campagnes-sensibilisation-promotion/respect-equite-salariale*.

What are the consequences of non-compliance?

Not cooperating during an audit, as well as failing to integrate the corrections prescribed following an audit, are likely to lead to very real consequences for a business. As always, it is in the best interest of a business to maintain well-organized records and cooperate in good faith with the CNESST.

When complaints are deemed admissible and can be followed-up on by the CNESST, employers are contacted, standards are explained and they are provided with actions to take in order to remedy the situation. Mediation services are also provided when needed. Depending on the complaint type, payroll-related remedying most often comes down to backpay and salary adjustments. In the case where an employer refuses to comply with the CNESST’s recommendations, the CNESST may conduct further investigations with the possibility of additional consequences.

If both parties can come to a mutual agreement during an investigation, and the situation is resolved, the CNESST will then close the file.

Fines

Fines have increased significantly under the revised Bill 101, with fines multiplying further depending on someone’s role and for repeat offenders. The reasons for handing out fines can vary from obstruction to tampering with documentation.

Reputational risks

As stated in the above section on pay equity, businesses who refuse to comply could have their names published on the CNESST’s Liste des employeurs contrevenants*.

Legal proceedings

If a situation remains unresolved beyond the specified timeframe, legal action will commence and a court date will be set for a hearing. Depending on complaint type, the case could be transferred to the CNESST’s legal affairs department, heard by the Direction des affaires juridiques, the Cour du Québec or the Superior Court.

Frequently asked questions about CNESST audits

Does a CNESST audit mean my business did something wrong?

Not necessarily. Being audited does not automatically mean that a business has committed an offense. The CNESST conducts both reactive audits (triggered by a complaint) and proactive inspections as part of their planned compliance program. Proactive audits are prevention-focused, not accusation-based.

How long do I need to keep payroll records in Québec?

Québec employers are required to keep payroll records for a minimum of six years. This includes salary registries, timesheets, punch cards, and pay stubs; all documents that CNESST inspectors may request during an audit.

What happens if I don’t comply with CNESST recommendations?

Failing to correct issues within the timeframe set by an inspector can result in fines (which have increased significantly under the revised Bill 101), public listing on the CNESST's Liste des employeurs contrevenants, and potential legal proceedings before the Cour du Québec or Superior Court.

Do I need to register with the CNESST if I only have one employee?

Yes. All employers in Québec with at least one employee must be registered with the CNESST. Registration must be completed within 60 days of your first employee's start date. Late registration fees apply after the 60-day grace period.

How can Québec SMBs stay audit-ready?

Thankfully, being audit-ready isn’t anything to lose sleep over once you have everything in place.

• Payroll records should be kept for 6 years
• Internal audits should be performed to maintain compliance, including payroll-related components:
  • Ensuring worker status/employment type is correct
  • Standardizing of processes and employee information collection
  • Time and attendance records including stat holiday calculations, time sheets and vacations
  • Variable pay or off-cycle payroll runs such as bonuses, and non-pay income such as allowances
  • Consent for voluntary deductions
• Ensure pay statements are complete and compliant
• Update absence and sick note policies

Using a payroll system that maintains an accurate audit trail can go a long way in simplifying the process. Payworks remits CNESST premiums to Revenu Québec on behalf of Québec clients, and the system maintains detailed payroll records accessible at any time — making it easier to respond quickly and confidently when the CNESST comes knocking.

Payworks helps Québec employers manage CNESST directly within the platform. You can set up your CNESST account information, enter your rate, and choose whether to have Payworks remit on your behalf or simply track amounts internally. Once configured, CNESST is calculated and collected automatically each pay run based on eligible earnings, no manual intervention required unless the CNESST contacts you for rate changes. Multiple rates can also be set up for different worker categories, each with its own account name. When it comes time to report, CNESST totals are available on your Box Report, and you can add a dedicated report to your standard payroll reports for a full picture of amounts collected and remitted — exactly the kind of documentation that makes responding to an audit straightforward.

To learn how we can support you and your organization in maintaining accurate data, staying compliant and audit-ready book a demo with one of our payroll experts: https://www.payworks.ca/landing-pages/campaigns/book-a-demo.