Eleanor Finch
In Ontario, Canada, there is no legal distinction between part-time and full-time workers in terms of employment law rights. Both types of employees are entitled to the same minimum standards and rights, including minimum wage requirements, vacation and sick days, and eligibility for unemployment pay under certain conditions. However, in practical terms, companies often have their own policies defining full-time and part-time work, with full-time employees typically working 37.5 to 40 hours per week and part-time employees working fewer hours, often less than 30 hours per week. This flexibility allows employers to define part-time hours in their company policies, as long as they adhere to the minimum standards set by law, such as the Employment Standards Act, 2000. This act ensures that part-time employees are entitled to certain benefits, such as unpaid sick leave and termination pay under specific conditions.
Characteristics and Values of Part-Time Employment in Ontario
| Characteristics | Values |
|---|---|
| Legal distinction between part-time and full-time employment | No legal distinction between part-time and full-time employment in terms of employment law rights. |
| Rights under employment law | Part-time and full-time workers are entitled to the same minimum standards and rights, including minimum wage, entitlement to vacation and sick days, and eligibility for unemployment pay under certain conditions. |
| Working hours | Part-time employees typically work fewer than 30 hours per week, while full-time employees work 37.5 to 40 hours per week. However, there is no standard for the maximum hours a part-time employee can work, and employers have the flexibility to define part-time hours in their company policies. |
| Compensation and benefits | Employers can legally offer different compensation and benefits to part-time employees compared to full-time employees, and can pay part-time workers less, as long as it is not for discriminatory reasons. |
| Overtime | Overtime entitlements are the same for part-time and full-time employees, and they are both entitled to overtime pay and time off in lieu of overtime pay. |
| Work time calculation | Work time includes time spent in training required by the employer or by law, time spent commuting if using a work vehicle or transporting other staff/supplies, and time spent "on-call" if called into work. |
| Employment contract | Employers cannot unilaterally change an employee's status from full-time to part-time without their consent, as it is considered a fundamental change to the terms of employment and may qualify as constructive dismissal. |
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What You'll Learn
No legal distinction between part-time and full-time
In Ontario, there is no legal distinction between part-time and full-time workers in terms of employment law rights. Both part-time and full-time employees are subject to the same minimum standards and rights outlined in the Employment Standards Act (ESA). This includes entitlements to a minimum wage, overtime pay, vacation and sick days, and eligibility for unemployment benefits under certain conditions. For instance, part-time employees are entitled to at least three full days of unpaid sick leave each calendar year, regardless of their start date or hours worked. Additionally, part-time employees who have worked for their employer for at least three months and are terminated without cause are generally entitled to termination pay under the ESA.
While there is no legal distinction, companies often have their own policies defining full-time and part-time work. Typically, full-time employees work 37.5 to 40 hours per week, while part-time employees work fewer hours, often less than 30 hours per week. However, these definitions are based on individual company policies and are not legally mandated. Employers in Ontario have the flexibility to set their own part-time and full-time hours in their company policies, as long as they adhere to the minimum standards set by law.
It is important to note that employers can legally offer different compensation and benefits packages to part-time employees compared to their full-time counterparts. This differentiation is not considered discriminatory under human rights legislation. Employers have the discretion to pay part-time workers less and provide fewer or no benefits, as long as the reasoning is not discriminatory.
Furthermore, understanding the distinction between part-time and full-time hours is crucial for both employees and employers to ensure compliance with the ESA. While the ESA does not explicitly define "full-time" employment, it generally refers to employees working 37.5 to 40 hours per week, with part-time employees working fewer hours. These distinctions often influence compensation packages, benefits, and other workplace policies. Employers must ensure that their policies distinguishing between full-time and part-time employees comply with the Ontario Human Rights Code.
In summary, while there is no legal distinction between part-time and full-time employment in Ontario, companies often have their own definitions and policies regarding these classifications. Employers have the flexibility to set part-time and full-time hours, compensation, and benefits, as long as they adhere to the minimum standards and rights outlined in the ESA and other relevant legislation.
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Rights and minimum standards
In Ontario, part-time and full-time workers are entitled to the same minimum standards and rights under employment law, with no legal distinction between the two in terms of employment law rights. Both types of employees are subject to the rights outlined in the Employment Standards Act (ESA).
The ESA sets down the minimum standards for basic conditions of employment, including wages, leaves of absence, work hours, overtime, and notice and severance pay obligations upon termination. It also lays out the legal rights and duties of employers and employees. The minimum standards set down in the ESA cannot be ignored by employers. They apply to the workplace even if they are not included in the employment contracts.
Minimum Wage
Under the ESA, employees eligible for minimum wage include full-time, part-time, casual employees, or those paid an hourly rate, commission, piece rate, flat rate, or salary. While a general minimum wage of $16.55 per hour applies to most workers in Ontario, it is different for students, homeworkers, and hunting and fishing guides. As of the date of publication of a source, the minimum wage for students was $14.60 per hour, and for homeworkers, it was $17.05 per hour.
Leaves of Absence
The ESA provides for leaves of absence, including pregnancy leave, parental leave, and family medical leave. Eligible employees who are pregnant can take pregnancy leave of up to 17 weeks of unpaid time off work. Birth mothers are entitled to up to 61 weeks of leave, and they may take both pregnancy and parental leave. All other new parents are entitled to up to 63 weeks of parental leave. While these leaves are unpaid, eligible employees can get maternity and/or parental benefits under the federal Employment Insurance Act. Employees may also be entitled to benefits offered by their employer, such as pension plans, life insurance plans, and extended health plans.
Work Hours
The ESA covers the hours of work, including rest entitlements. Generally, work is considered to be performed when the employee is actually working or is required to stay at the workplace. Commuting time is not counted as work time, except when the employee takes a work vehicle home for the employer's convenience, or when they are required to transport other staff or supplies to the workplace. Time spent travelling during the workday and time spent in training required by the employer or by law are also counted as work time.
Overtime
The ESA covers overtime, and employers are no longer required to apply to the Director of Employment Standards for approval of excess weekly hours or overtime averaging agreements. An employer and an employee can agree in writing that the employee will work more than eight hours a day or their established regular workday, provided that the employer gives the employee the most recent information sheet about hours of work and overtime pay rules in the ESA.
Notice and Severance Pay
Part-time employees are generally entitled to termination pay under the ESA if they have worked for their employer for at least three months and are terminated without cause. Severance pay is calculated as a lump sum payment equal to the wages for a regular work week, and employees are also entitled to a minimum of 4% of their vacation pay on termination. In Ontario, the notice period for termination increases depending on the length of employment, regardless of whether the worker is part-time or full-time.
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Employer-defined part-time hours
In Ontario, there is no legal distinction between part-time and full-time workers in terms of employment law rights. Both types of employees are subject to the rights outlined in the Employment Standards Act (ESA), which includes a minimum wage requirement, entitlement to vacation and sick days, and eligibility for unemployment pay under certain conditions. For instance, part-time employees are entitled to at least three full days of unpaid sick leave each calendar year.
However, companies often have their own policies for defining full-time and part-time work. Typically, full-time employees work 37.5 to 40 hours per week, while part-time employees work fewer hours, often less than 30 hours per week. These definitions are based on individual company policies rather than a legal standard. Employers in Ontario have the flexibility to define part-time and full-time hours in their company policies, as long as they adhere to the minimum standards set by law.
Employers in Ontario can legally offer different compensation and benefits packages to part-time employees compared to full-time employees. This differentiation is not considered discriminatory under human rights legislation. Employers have the discretion to pay part-time workers less and offer them fewer or no benefits compared to full-time employees, as long as the reasoning is not discriminatory.
It is important to note that employers in Ontario cannot unilaterally force a full-time employee to switch to part-time hours without their consent. A significant reduction in hours can be considered a fundamental change to the terms of employment, amounting to what is known as constructive dismissal. Constructive dismissal occurs when an employer changes key terms of a job without the employee's consent, essentially forcing them out of their role. In such cases, employees may be entitled to severance pay as though they were terminated.
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Overtime and work hours
While the Canada Labour Code does not specifically define full-time and part-time employment, the accepted guideline is that full-time employment is more than 30 hours a week, and part-time is less than 30 hours a week. Most employers use an eight-hour day and a 40-hour workweek to identify a full-time position. The Canada Labour Code requires companies to pay overtime for employees working more than eight hours a day or 40 hours a week, unless they are in a salaried or exempt position. However, each province and territory in Canada, including Ontario, may have its own labour standards without specific criteria for part-time hours.
In Ontario, the Employment Standards Act (ESA) applies to both part-time and full-time employees, outlining various rights, including a minimum wage requirement, entitlement to vacation and sick days, and eligibility for unemployment pay under certain conditions. Notably, part-time employees are entitled to at least three full days of unpaid sick leave each calendar year, regardless of their start date or hours worked. Additionally, they are generally entitled to termination pay if they have worked for their employer for a minimum of three months and are terminated without cause.
Overtime Entitlement:
In Ontario, overtime entitlement is typically triggered after an employee has worked 44 hours in a workweek. Any hours worked beyond this threshold must be compensated at a rate of one and a half times the employee's regular rate of pay, often referred to as "time and a half." This means that for every hour of overtime worked, the employee will receive their regular hourly rate plus an additional half rate. This overtime rate is applicable regardless of whether the employee works multiple jobs with different rates for the same employer, as demonstrated in the example below:
> An employee works as a punch press operator earning $20.00/hour and also as a shipping logistics coordinator earning $25.00/hour for the same employer. The employee’s overtime threshold is 44 hours and the overtime rate is 1.5 times the regular rate. In one work week, the employee worked four hours of overtime. The 45th and 46th hours were worked as a punch press operator, and the 47th and 48th hours were worked as a shipping logistics coordinator. This employee’s overtime pay entitlement would be calculated as follows:
> 45th hour overtime rate is $20.00 x 1.5 = $30.00 per hour
> 46th hour overtime rate is $20.00 x 1.5 = $30.00 per hour
> 47th hour overtime rate is $25.00 x 1.5 = $37.50 per hour
> 48th hour overtime rate is $25.00 x 1.5 = $37.50 per hour
> The total overtime pay due to the employee is $135.00 [$30.00 + $30.00 + $37.50 + $37.50]
It is important to note that employees who perform both exempt and non-exempt work in a workweek are entitled to overtime pay for all hours worked beyond 44 if the non-exempt work constitutes 50% or more of their total work hours. Additionally, employees can agree with their employer to receive paid time off instead of overtime pay, known as "banked" time or "time off in lieu." This time off must be taken within three months of earning the overtime or within 12 months if the employee agrees. If the employee's job ends before they take the paid time off, they must be compensated for the overtime hours worked.
Work Hours and Breaks:
The ESA also outlines regulations regarding work hours and breaks to ensure the well-being of employees. Here are the key points:
- Daily Rest Periods: Employees must be provided with at least 11 hours of rest each day, unless they are "on-call."
- Time off Between Shifts: There should be a minimum of eight hours between shifts, unless the total time on successive shifts does not exceed 13 hours.
- Weekly or Bi-Weekly Rest Periods: Employees are entitled to at least 24 consecutive hours of rest in every workweek or 48 hours in two consecutive workweeks. Ideally, this day of rest should be on a Sunday.
- Meal Breaks: Meal breaks are typically unpaid unless specified in the employment contract. Even if the employer pays for meal breaks, the employee must be relieved of their work duties for it to qualify as a meal break. These breaks do not count towards overtime calculations.
- Coffee Breaks: Employers are not required to provide coffee breaks or similar short breaks. However, if employees are required to remain at the workplace during such breaks, they must be paid at least the minimum wage for that time.
- Commuting Time: Generally, commuting time is not considered work time. However, there are exceptions, such as when an employee takes a work vehicle home for the employer's convenience or transports staff or supplies to and from the workplace. In such cases, that time is counted as work time.
- Training Time: Time spent in training required by the employer or by law is considered work time and is included in the calculation of work hours.
Exemptions and Special Cases:
It is important to note that not all employees or work types fall under the standard overtime and work hours regulations. Here are some special cases:
- Managerial and Supervisory Roles: Managers and supervisors generally do not qualify for overtime pay if their primary work is managerial or supervisory.
- Motor Vehicle Operators: Special regulations, such as the Motor Vehicle Operators Hours of Work Regulations (MVOHWR), apply to city and highway motor vehicle operators, including truck and bus drivers. These regulations outline specific overtime thresholds and work hour requirements for these employees.
- Multiple Regular Rates: If an employee has multiple regular rates for different jobs with the same employer, they are entitled to overtime pay once the total number of hours worked for the employer reaches the overtime threshold.
- Excess Weekly Hours Agreements: Employers and employees can agree in writing or electronically to exceed daily work hour limits, provided they adhere to the specified number of hours in the agreement and the employee receives the most recent information sheet about hours of work and overtime pay rules.
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Severance pay entitlements
Severance pay is a form of compensation provided to long-serving employees in Ontario when their employment is terminated without cause. It is separate from termination pay, which is given in place of the required notice of termination of employment. To qualify for severance pay in Ontario, employees must meet specific conditions under the Employment Standards Act (ESA).
Firstly, the employee must have worked for the employer for at least five years. This includes all time spent with the employer, whether continuous or not, and whether the employee left for an indeterminate period and then returned. Secondly, the employer must have a global payroll of at least $2.5 million, or the termination must be part of a group layoff involving 50 or more employees within a six-month period.
If these criteria are met, the employee is entitled to severance pay in addition to termination pay. The amount of severance pay is calculated based on the employee's length of service and regular wages at termination. The formula is: Regular weekly wages x Years of service = Severance Pay. The ESA caps severance pay at a maximum of 26 weeks. Employees who have worked for the employer for less than three years may be treated better than long-term employees when it comes to severance.
It is important to note that employees are not entitled to severance pay if they meet certain conditions. For example, if they refuse an offer of "reasonable alternative employment" with the employer or if their employment is severed and they retire on a full pension. Additionally, employees who are employed in construction or certain types of maintenance work may not be eligible for severance pay.
Employment contracts can also influence severance entitlements. Contracts often contain clauses that aim to limit severance pay to ESA minimums, but these clauses must meet strict legal standards. If the termination clause is ambiguous or does not comply with ESA standards, it may not be enforceable, and the employee could be entitled to full severance pay under common law. In some cases, employees may be entitled to common law severance pay, which is typically more than the statutory minimum. However, accessing these entitlements generally requires the assistance of a lawyer.
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Frequently asked questions
There is no legal distinction between part-time and full-time employment in Ontario, Canada. However, full-time employees typically work 37.5 to 40 hours per week, while part-time employees work fewer hours, often less than 30 hours per week.
No, your employer cannot force you to switch to part-time employment if you were hired as a full-time employee. A significant reduction in hours can be considered a fundamental change to the terms of your employment contract and may amount to constructive dismissal.
Yes, employers in Ontario can legally offer different compensation and benefits to part-time employees compared to full-time employees. This differentiation is not considered discriminatory under human rights legislation.
There is no standard for the maximum hours a part-time employee can work in Ontario. An employer can set any number as the maximum number of hours a part-time worker can work per week, as long as they adhere to the minimum standards set by law, such as minimum wage and overtime pay requirements.
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