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.  Because the CPF is sometimes confused with the provisions of the Canadian Employment Equity Act, the CPF 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. 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. Compliance assessments are carried out by Labour programme officials to ensure that a contractor meets the terms of its agreement on the implementation of employment equality in accordance with the requirements of the CPF. An initial compliance assessment is carried out one year after a contractor concludes a first contract.
Subsequent evaluations are then conducted every three years. The program applies to provincial contractors who: as soon as a contractor receives an eligible contract from the Canadian government, the contractor must meet the following requirements: however, there are parallels between the two programs.