What is a Part-Time Employment Agreement?

Part-time employment agreements are contracts between employers and employees or prospective employees that lay out the terms and conditions of the employment relationship. They typically delineate the working hours, days and responsibilities, and sometimes specify other working conditions.
Objectives
The purpose of this type of agreement is to clearly define what each party is required to do and is entitled to receive. It usually specifies working conditions, including workplace rules and regulations and any confidentiality requirements. Restrictions on activities may also be included in order to protect the employer’s interests in business practices, and non-competition or non-solicitation clauses may be outlined. Such agreements are essential in order to avoid misunderstandings . For example, if an employee is hired for one specific task, and signs a part-time employment agreement to that effect, any claim for overtime based on working extra hours may be precluded.
Clauses
A good part-time employment agreement will typically include the following clauses:
All provisions of the agreement are subject to legislation currently in effect, and it is doubtful that such a document would be enforceable where its provisions are at variance with the Employment Standards Act, 2000 (hereinafter, the ESA).
Conclusion
While a part-time employment agreement should ideally be customized for each individual case, it will usually remain in existence for as long as the employee is employed on a part-time basis.

Key Elements of a Part-Time Employment Contract

A contract for part-time employment should include the essential components of any employment contract, but also have a few additional specifications as well. Principally, the contract should have all the essential elements of an employment contract, such as 1) job duties, 2) working hours, 3) salary and benefits, and 4) confidentiality.
The job duties should be clearly defined, so the employee knows exactly what is expected of him or her. The working hours may be flexible, but they should be clearly stated in the contract as well, such as "8 hours a week" or "agenda dependent, with one day’s notice." While the employee should be paid in an amount proportionate to someone who performs similar work full time, it is also important to ensure the employee earns at least the minimum wage for each hour worked, even if the employer does not get value equivalent to the minimum wage for each hour worked.
Because part-time employees are often not entitled to the same benefits as a full-time employee, it may be necessary to define the types of benefits the employee will receive. For example, if it is agreed that the employee will participate in a health coverage plan, the contract should specify that the employee will be required to pay a portion of the premium, in light of the fact that this is unusual for a part-time employee.
Finally, the contract should also include language regarding confidentiality. While the contract may explicitly state whether the employee will be privy to any proprietary information, it should also include a confidentiality provision that would apply regardless of their exposure to confidential information.

Part-Time vs Full-Time Employment Contracts

Although the general structure of a contract of employment for a part-time employee is similar to that of a full-time contract, there will inevitably be certain distinctions between the two in terms of working time and the entitlements of the employee. The first and most obvious planks of difference between the two contracts are those which relate to working time and pay. For a part-time employee, their work time will be less than that usually expected from a full-time employee, though the specifics are dependent on the terms of the individual contract. Similarly, pay will be lower in line with the quantity of work expected in a part-time job. With regard to hours worked, these are set down in the contract and the employee will be expected to be available during these hours. If an employee declines to work these hours, or if they attempt to take on too many other jobs and cannot commit to the contract, then they could be in breach of their contract. The only binding obligation on a part-time worker with regards to hours worked is for the employer to ensure that they are paid a part-time rate which is re-factioned from the full-time salary. So if a full-time employee works 40 hours and earns £40,000, a worker contracted to only 20 hours is entitled to a half-time salary, i.e. £20,000. While the working time and pay aspects of a part-time contract are more flexible and tailored to the individual than a full-time contract, all other obligations are comparable. There is a presumption that part-timers are less entitled to the benefits dished out to full-timers, but in reality they are actually entitled to the same rights subject to the following qualifications: • 8% Statutory Holiday Pay – A part-time employee working fewer hours than a full-time employee would be entitled to this figure calculated on a pro-rata basis in line with the ratio of hours worked. Thus, if a full-time employee works 40 hours a week and therefore gets 16 hours a week, a part-timer who works only 20 hours would be entitled to 8 hours. • 8% Statutory Annual Leave – Again, a part-time employee deserves 8% of the annual leave expected of a full-time worker, which amounts to four weeks for most full-timers. Therefore a part-time employee is entitled to a statutory benefit of 20 days a year – usually taken cumulatively over the course of a year. • Protection from Detriment or Dismissal – If a part-time employee is penalised by their employer for trying to enforce their statutory rights, that employer will be guilty of a detriment or potentially an act of victimisation and harassment, allowing the part-timer to pursue legal action against them. • Duty to Consult – An employer must notify a part-timer in writing of any changes to their contract or any proposed changes to the terms of employment. • Right to Request Flexible Working – Employers have to give consideration to requests from part-time employees for a change to their working hours, believing it vital that staff members work flexibly to improve business efficiency.

Legal Issues Regarding Part-Time Employment

When entering part-time employment agreements, employers must ensure that they are aware of the rights of employees to receive benefits, as well as what is required of them under employment legislation.
Vacation Pay
The Employment Standards Code (the "Code") specifically states that an employee who has worked for the same employer for 6 consecutive months is entitled to a minimum of two weeks’ vacation per year. This entitlement applies to all employees, even though they may only work part-time. However, the calculation for how much vacation pay is owed is calculated on the basis of how much the employee worked, and unlike most other benefits is calculated by time worked as opposed to average earnings.
Termination Notice
Whether an employee works full-time, part-time, or on a casual basis, their employment will be considered indefinite unless they are working under an employment contract with a specified end date. If an indefinite employee wishes to terminate their employment, they must give their employer at least one week’s notice if they have worked for the employer for less than two years, or two weeks’ notice if they have worked for the employer for two or more years. An employee does not have to give notice of termination for an indefinite employment relationship if the employer has indicated that the contract will be terminated within that time, or if the employee is entitled to severance pay under section 63 of the Code. If an indefinite employee works less than five days per week, then the notice they are entitled to is determined based on the average number of days per week they worked over the previous 4 weeks . For example, if an employee worked two days per week, their notice required would be 2 weeks’ notice, but if they worked 5 days per week, their notice required would be 2 weeks’ notice. If the employee fails to provide the required notice, the employer can deduct the value from any wages or other payments to which the employee is entitled at the time of providing notice. The Code also provides that employers are required to provide the same employee benefits to part-time employees as their full-time counterparts unless they have an exemption.
Overtime Pay
Employees who regularly work more than 44 hours per week are entitled to overtime pay. Part-time employees, however, are entitled to overtime pay if their hours worked in excess of 44 hours per week average at least eight or more hours per day over the course of four or more consecutive weeks. This means that a part-time employee could be eligible for overtime pay, even if they have not worked more than 44 hours in any given week. Part-time employees who work less than 44 hours per week are only entitled to overtime pay if they work more than eight hours in their work day and more than 40 hours in their work week.
Minimum Wage
Both full-time and part-time employees must be paid no less than minimum wage, or else they are a victim of contract mistake if their contract stipulates a lower wage than the minimum wage. Currently in Alberta, minimum wage is $15 per hour, but it varies across Canada.

How to Draft a Part Time Employment Agreement

When it is time to write a part-time employment agreement, there are three steps.
First, begin with an employment contract form. It is easier and more cost-effective to write an employment agreement using a form as a guide than reinvesting your time by drafting a new agreement from scratch.
Second, use a part-time employment contract form. This ensures that you have the right contract to fit your employee’s schedule. For example, if your employee works only three days a week, you need an agreement that refers to their part-time schedule and not a full-time work schedule.
Third, customize the employment contract form. Use the part-time employment contract form as a drafting guide and change those sections which are relevant to the best employment practices for your specific employee. For example, is your employee eligible for benefits? Will they be paid for overtime or have an hourly wage? Use your part-time employment contract to personalize those and other details about your employee’s compensation, benefits, and job responsibilities.
Finally, ensure that your employment contract complies with employment laws. For example, ensure that your employment contract has the same number of paid holidays as your full-time employees. Or ensure that your employment contract complies with your company handbook.

Part-Time Employment Agreement Template

The following employment agreement is intended as a guide to some of the terms often included in such agreements, and should be tailored to fit the specific needs of the business and employee. Again, while the agreement may provide welcome clarity between the parties, it is by no means a substitute for applicable federal, state and local laws governing the employment relationship. All employers will want to enlist the assistance of legal counsel when drafting any type of employment agreement, particularly those that govern the employment of exempt employees.
This Employment Agreement (hereinafter the "Agreement") is made effective as of [insert effective date] by and between [insert Company Name], and an employee to the Company (hereinafter the "Employee"). The Company and the Employee are sometimes referred to herein collectively as the "Parties," and individually as a "Party." On the Effective Date, the Company and the Employee agree to the following:

1. Period of Employment

[Insert a brief description of the Employee’s position, e.g., title and department, as well as who the Employee will report to.] The Employee agrees to devote only such time and attention to his or her job on behalf of the Company as the Employee determines necessary, and agrees that the Employee has full and unfettered discretion to set work and vacation schedule in accordance with the needs of the Company and the Employee’s personal needs, so long as the Employee performs his or her assigned tasks as necessary.

2. Compensation

The Company agrees to pay the Employee a salary at the bi-weekly rate of $X per hour. The Company agrees to pay overtime compensation for each hour the Employee works over 40 hours in a given work week in accordance with [Insert applicable state or local regulations].

3. Other Benefits

The Employee shall be entitled to participate in the benefit programs maintained by the Company on the same basis as offered to all of the Company’s employees as described in the applicable employee handbook or summary plan description issued by the Company , including insurance, vacation and sick leave, to the extent they apply to the Employee’s work performed by the Employee at the Company.

4. Termination

The Employee may terminate his or her employment with the Company at any time for any reason. The Company has the same right to terminate the Employee’s employment with just cause.

5. Confidential Information

The Employee acknowledges and agrees that the Company possesses and may develop confidential proprietary information and trade secrets. This information is considered to be valuable and proprietary to the Company. The Employee agrees that at no time during or after the term of this Agreement shall the Employee save, retain or disclose any such confidential information of the Company.

6. Non-Solicitation and Non-Compete

For the 12-month period immediately following the termination of the Employee’s employment with the Company, regardless of the reason for the termination, the Employee agrees not to (i) solicit any of the Company’s customers, suppliers or vendors and (ii) encourage or induce any of the Company’s employees to leave the Company’s employment and seek employment with any other company.

7. Miscellaneous

Entire Agreement – This Agreement constitutes the entire agreement between the parties, and supersedes any prior agreements related to this employment.
Modification – No amendment or modification of this Agreement shall be valid unless we have a writing signed by you and me.