Establishing date of pay increase

If performance review is late, does annual pay increase have to be retroactive?
By Colin Gibson
|Canadian Employment Law Today

Question:

In our (non-union) company, we review each employee’s job performance and rate of pay annually. An employee's review was two months late and he received a pay increase. Can we implement the increase effective on the employee’s actual review date, or do we need to make it retroactive to the date when his review should have occurred?

Answer: