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Casual employment definition
Casual employment generally refers to an arrangement where an employee works occasionally or as needed, often without regular or guaranteed hours. Businesses may use casual employees for short-term staffing needs, such as seasonal demand, short absences or unexpected increases in workload. Longer periods of regular replacement work may be better suited to a fixed-term or temporary arrangement.
These workers are essential across numerous industries and roles and are relied on by businesses of all sizes to maintain adequate staffing levels when needed.
There is no single definition of casual employment that applies to every workplace in Canada. The applicable federal, provincial or territorial rules, the employment agreement and the actual working relationship all matter. Calling someone a casual employee does not, by itself, determine the worker's legal status or remove statutory protections.
We’ll go into these differences in more detail below, but generally, casual employment is characterized by less regular or predictable work than permanent employment.
What are casual employees entitled to?
Casual employees are generally entitled to the applicable minimum wage in their jurisdiction, subject to any statutory exceptions. The main differences between casual and permanent employment typically relate to the nature of the working relationship, although certain entitlements may also vary. These are governed by federal, provincial and territorial legislation.
The core areas we'll be discussing in this article are CPP/EI contributions, vacation entitlements and termination notice or pay. These have specific requirements that employers may already be familiar with for their permanent workforce. Here's how some of these requirements apply to casual employees across Canada.
Federal
Casual employment is generally subject to Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums, provided the employment is pensionable or insurable under the relevant legislation. A specific exception applies where employment is both casual and unrelated to the employer's trade or business.
Casual employees covered by federal labour standards are generally entitled to statutory vacation and vacation pay. Individual termination notice or pay generally applies after three consecutive months of continuous employment, while severance pay generally applies after 12 consecutive months, subject to statutory exceptions.
Ontario
Ontario's Employment Standards Act, 2000 generally establishes minimum standards for employees covered by the legislation. A casual label does not automatically remove rights such as vacation pay or termination notice or pay, although eligibility rules and exemptions may apply. CPP and EI obligations are governed separately under federal legislation.
British Columbia
British Columbia's Employment Standards Act applies to employees regardless of whether they work on a casual, temporary, part-time or full-time basis. Casual employees are therefore generally covered by applicable minimum employment standards, including vacation and termination provisions.
Genuine independent contractors are not covered by the Act's employee protections, although employment status depends on the actual working relationship rather than the label used.
Alberta
Alberta is somewhat unique in that it specifically recognizes casual employment arrangements where employees can choose whether or not to work when requested. Employees working under this type of arrangement are not required to provide the usual resignation notice.
However, this does not automatically exempt employers from their termination obligations. Casual employees may also be entitled to minimum wage, vacation pay and other applicable employment standards. CPP and EI obligations are determined separately under federal legislation.
Other Canadian provinces and territories
In jurisdictions including New Brunswick, Manitoba and the Northwest Territories, casual employees are generally covered by applicable employment standards, subject to eligibility requirements and exemptions.
Manitoba, for example, explicitly identifies as a misconception the idea that casual and part-time employees are subject to different vacation rules simply because of their employment status.
The bottom line
Across Canada, casual employment does not automatically give employers permission to offer less than the minimum rights established by the applicable employment standards legislation. Employment agreements can establish important working arrangements, but employers must also consider statutory requirements, eligibility conditions and the actual nature of the employment relationship.
How to draft a casual employment contract
Generally, across jurisdictions, you should approach drafting a casual employment contract the same way you would with a permanent worker. Identify the following, considering their status as a casual employee and the legal statutory minimums depending on your jurisdiction:
Classification of employment: Describe the intended arrangement accurately, such as casual, part-time, fixed-term or temporary, while recognizing that the actual working relationship and applicable law will determine the worker's rights and status.
Job title and responsibilities: A short description of the employee’s job role and what is expected of them. You should also mention when performance reviews will be held.
Paid salary and benefits: You must state how much you’ll be paying them and how often. You must state details of any benefits, such as a pension, as well as any bonus schemes.
Leave entitlements: Include and explain your leave of absence, sickness, and paid-time-off policies. Also, make clear any disciplinary procedures surrounding unauthorized absences.
Termination details: Make it clear what actions can lead to contract termination.
Employment terms and scheduling expectations: State whether hours are expected to be irregular or non-guaranteed, how shifts will be offered and accepted, and whether either party may decline work. The agreement should be reviewed if the employee begins working regular or predictable hours.
For a complete breakdown on employment contracts, follow our detailed guide.
What are the minimum hours for casual employees?
There is no single Canada-wide minimum number of weekly hours that defines casual or part-time employment. The applicable legislation, employment agreement and actual scheduling practices should be reviewed. Employers must also consider jurisdiction-specific rules that may require minimum reporting or call-in pay when an employee reports for work or has a scheduled shift shortened.
The practical distinction is often the regularity and predictability of the work, rather than a universal hourly threshold. A commonly used statistical definition of part-time work is fewer than 30 hours per week, but that is not a universal legal definition for employment standards purposes.
Do you have to contribute a pension towards casual employees?
Generally, casual employees in Canada are subject to the same mandatory public pension contribution requirements as permanent employees. However, these requirements are governed separately from employment standards legislation.
In most Canadian provinces and territories employers are required to contribute to the Canada Pension Plan (CPP) and deduct the employee’s share from their pensionable earnings. Read our full guide on employee pensions for more information on employer pension responsibilities.
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