Employers supplementing their workforce with part-time employees frequently question if those employees are entitled to benefits. This question may be difficult to answer because of the diverse legal stipulations, alongside minimal federal guidance on the definition of part-time employment. Nonetheless, offering benefits to part-time workers holds significant value. It demonstrates a company’s commitment to the welfare of its entire workforce, potentially enhancing employee engagement and attracting more talent.

Table of Contents

What is a part-time employee?

According to Canada.ca, part-time employment is defined as working more than one-third of but less than a normal full-time workweek, or one-third or less of a normal full-time workweek.

  • Employees working more than one-third of, but less than a normal full-time workweek may be subject to the terms and conditions of employment specified in their collective agreement.
  • Employees working one-third or less of a normal full-time workweek may be required to follow certain terms and conditions of employment specified in their relevant collective agreement, such as:
        – earning of vacation leave
        – union dues deductions
        – no bilingual bonus

What are the most common benefits for part-time employees?

Employers may use the following benefits to motivate their part-time employees:

Health Insurance

Offering medical benefits can ensure employees stay healthy and reduce the number of days missed due to illness, which in turn maintains staffing levels and productivity. Employees may need to work a certain number of hours a week to qualify for health insurance; however, specifics can vary based on the insurance provider and federal/provincial laws.

Retirement plans

Concerns over financial security can distract employees during work hours. By including part-time employees in retirement savings programs, assuming they meet certain requirements, employers can lessen this worry and boost productivity.

Additional perks

Providing extra benefits like paid time off, education funding, the option to work remotely, and flexible scheduling not only shows part-time employees they are valued but can also increase their commitment to the company.

What benefits are required for part-time employees?

An employee’s part-time status may affect their eligibility for benefits including disability insurance and Employment Insurance benefits and leave.

Advantages of offering part-time employee benefits

Employers operating within strict budgets might initially resist the idea of allocating additional funds for optional expenses. However, investing in benefits for part-time employees can lead to significant returns. Providing such benefits can help employers:

  • Gain a competitive advantage: Offering benefits to part-time employees can significantly distinguish a company in a competitive job market. Many organizations typically reserve benefits for full-time employees, so extending these perks to part-time staff signals a commitment to employee welfare and inclusivity. This approach may not only attract a wider talent pool but may also enhance the company's reputation as a progressive and caring employer.
  • Attract more talented individuals: Talented candidates have more options and can afford to be selective about where they choose to work. By providing benefits to part-time employees, a company can cast a wider net in attracting talent. Such policies may appeal to a diverse group of job seekers, including students, parents, or those seeking a work-life balance, who might specifically look for part-time roles but are unwilling to compromise on benefits. Offering part-time benefits to these groups may position the company as an employer of choice for talented individuals looking for flexibility in their careers.
  • Retain top talent and reduce turnover: Employee turnover can be costly and disruptive. Offering benefits to part-time employees can foster a sense of belonging and appreciation, making employees more likely to stay with the company. Knowing that their well-being is valued, regardless of their employment status, can motivate employees to remain loyal. Reduced turnover may not only save on the cost associated with hiring and training new staff but may also strengthen team dynamics.
  • Enhance employee engagement and productivity: Providing benefits can contribute to a healthier, more financially secure, and engaged workforce. Part-time employees receiving benefits are likely to feel more valued and respected, leading to increased morale. When employees, irrespective of their employment status, feel they are treated well, their engagement and productivity levels can soar. They may become more committed to their roles and feel motivated to contribute to the company's success. Higher engagement and productivity can further impact customer satisfaction and, ultimately, the company's bottom line.

Frequently asked questions

Do part-time employees get any benefits in Canada?

Part-time employees in Canada may be eligible for benefits, depending on their employer's policies. Employers must adhere to all relevant federal, provincial, and municipal regulations, but they have the discretion to set the conditions of their benefits packages, including determining eligibility.

Do part-time workers get vacation and sick leave?

Part-time workers earn vacation and sick leave credits for each month that they receive pay for at least twice the number of hours in their part-time workweek.

If a part-time employee works additional hours, they may need to have a new assigned workweek established so that their vacation and sick credits for the applicable month can be calculated properly.

How many hours is part-time in Canada?

In most provinces, excluding Saskatchewan, part-time work is typically defined as working less than 30 hours a week, although there is no set regulation over the number of hours that signifies part-time employment. It may be important to note that an individual can be employed for up to 40 hours a week and still be classified as a part-time employee. Whether someone is considered part-time or full-time depends primarily on their employment contract and the internal policies of their employer.

What is considered part-time in Saskatchewan?

In Saskatchewan, part-time employees work between 15 and 30 hours a week. They may receive 50 per cent of the benefits provided to comparable full-time employees. If they work 30 or more hours in a week, they may receive 100 per cent of the benefits provided to comparable full-time employees.

If I offer tuition assistance, do my employees have to go to a certain program or school?

Each company determines its own specific criteria for tuition assistance. Education benefits may often only cover specific areas of study, institutions, or programs . Additionally, some companies may impose a limit on the tuition amount or reimburse only for a limited number of classes. By offering tuition assistance, companies invest in the professional growth of their employees and position themselves as employers of choice, attracting and retaining top talent in a competitive job market.

Learn More

Are you looking to offer benefits that will help you retain your top talent? You can benefit from ADP’s benefits and enrollment solutions. Talk to us about your goals, and we’ll walk you through our benefits solutions — including how companies like yours use them. Call 866-622-8153 or start a quote.

This guide is intended to be used as a starting point in analyzing part-time benefits and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.