Casual work vs part-time employment

What is the difference between casual and part-time employment?

In Canada, the criteria for casual employment vary across provinces, territories and federally regulated workplaces. Broadly, casual work is often occasional or as needed, while part-time work is usually more regular or ongoing but involves fewer hours than comparable full-time work. The title used in an agreement is not conclusive; employers should consider the actual relationship and the applicable employment standards.

Casual employees are often used for short-term or unpredictable needs, such as seasonal spikes, short absences or unexpected increases in workload. Part-time employees generally work fewer hours than full-time employees on a more regular or ongoing schedule. A fixed-term or temporary employee may be a better fit for longer absences or project work involving regular or substantial hours.

The distinction is not always clear-cut. Employers should document the intended arrangement, apply the employment standards in their jurisdiction and review the classification if the work becomes regular, predictable or ongoing.

Which one is right for your business?

Every business case is going to vary, but with a broad understanding of what constitutes a casual or part-time employee, we can look at some typical use cases for each.

Part-time employees

Part-time employees are often hired for one or more of the following purposes:

• To stay on top of peak periods. Some industries, particularly hospitality and retail, experience significant increases in demand at particular times of day or on certain days of the week. Having a part-time workforce can allow you to maintain appropriate staffing levels and meet increased business demands during these peak times.

• General staffing flexibility. Throughout a business period, your budget and staffing requirements may change. You may find that you can operate with lower labour costs or, conversely, that you need additional support. Part-time staff can give you greater flexibility to adjust your workforce as your business needs change.

• Managing benefit costs. Eligibility for workplace benefits can depend on the terms of your benefit plans and the applicable employment standards. Where additional benefits are offered specifically to full-time employees, hiring part-time staff may help businesses manage their overall benefit costs.

• Wider talent pool. Part-time employees may seek fewer hours because of education, parental responsibilities, other employment or personal circumstances. These candidates could be the perfect fit for your business, so offering part-time work can help you access people who may otherwise be unable to take on a full-time position.

Casual employees

Hiring casual employees can serve a slightly different business need, for example:

• Covering permanent staff absences. Vacations and brief periods of sickness can leave a business short-staffed. Casual employees may provide support at short notice. For longer absences, including extended maternity or parental leave coverage, a fixed-term or temporary arrangement may be more appropriate where the replacement will work regular or substantial hours.

• Align labour costs with demand. When your staffing needs fluctuate, casual employees can allow you to bring in additional support when it’s needed without committing to regular hours during quieter periods. This can help you manage labour costs while still having additional resources available during periods of increased demand.

• Even more flexibility. Casual employees can provide support for unexpected demand, seasonal events and genuinely irregular short-term needs. Project-based or specialized work should be classified based on the actual relationship and may instead call for a fixed-term employee, temporary employee, dependent contractor or independent contractor.

• Finding potential permanent employees. When recruiting for a role that requires a particular set of skills and attributes, you may find that a casual employee is a good fit for a longer-term opportunity. Where appropriate, you could offer them a permanent position based on their experience working with your business.

What benefits are casual employees entitled to?

Casual employees across Canada are generally entitled to many of the rights and statutory minimums associated with permanent employment. These can include:

• Minimum wage

• Vacation and vacation pay

• Public/general holiday entitlements

• Hours of work, breaks and overtime protections

• Protected leaves

• Termination notice or pay

• Occupational health and safety protections

As with Canadian employment legislation generally, the details vary by jurisdiction. For example, Alberta recognizes arrangements in which an employee may choose whether to work when requested and provides a specific resignation-notice exception in that situation. That does not automatically remove the employer's obligations when ending the relationship.

For a more thorough breakdown of the variations in casual employee entitlements across jurisdictions in Canada, read our article, What is casual employment?

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 minimum reporting or call-in pay rules.

The practical distinction is often the regularity and predictability of the work, rather than a universal hourly threshold. Fewer than 30 hours per week is commonly used for statistical purposes to describe part-time work, but it is not a universal legal definition under Canadian employment standards legislation.

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.

Get one-to-one advice on hiring full-time and part-time employees

Every business is different and requires different considerations, especially when factoring in provincial and territorial legislation.

Thankfully, BrightHR is here to help. Alongside a full suite of HR software for all things people management, you’ll gain access to a 24/7 employment relations advice line.

Make unlimited calls to Canadian HR experts for jurisdiction-specific guidance and get walked through processes step-by-step. Eligible services may also include HR Defence, subject to the applicable product terms and coverage conditions.

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