Part-Time Employment Agreements: An Overview
The part-time employment agreement is a similar document to its full-time counterpart. It establishes the terms of an existing employment relationship and is typically entered into with an employee who makes some accommodation to their work schedule for personal reasons (e.g. family obligations, medical issues, etc.).
Unlike a regular employment contract, however, the majority of a part-time employment agreement is focused on the legal minutiae concerning the employee’s working schedule . The document usually contains information about the employee’s weekly hours (with flexibility built in), start and end times for each shift, the working days, wage entitlements, and the number of vacation days (often prorated compared to the equivalent full-time employment agreement).
Other necessary elements include the development of up to eight well-written, enforceable, and legally defensible workplace policies on the following: By carefully considering these elements, drafting a compliant part-time employment agreement, and inserting a probationary clause, employers can ensure that their limited work arrangement is legally protected should an employment dispute arise.
Key Provisions in a Part Time Employment Agreement
A part-time employment agreement should clearly set out the employee’s job duties and responsibilities, work schedule, compensation, benefits (if any), and conditions for termination. Though most items are similar to a regular full-time employment agreement, some provisions have been changed to reduce the company’s obligations.
Some of the more critical provisions to a part-time employment agreement include: job duties and scope of employment; work schedule and pay; benefits and leave entitlements; confidentiality and ownership of intellectual property; company expenses and reimbursements; enforceable non-solicitation and non-competition provisions or covenants; and the conditions under which the company can terminate the employee’s employment.
The agreement should also specify the employee’s start date, hourly or salaried compensation, and whether there is a probation period. In particular, the agreement should specify the remuneration for overtime hours. Unlike full-time employees, the inapplicability of the Employment Standards Act, 2000 (the "Act") to certain part-time employees does not necessarily apply to part-time managers or otherwise deemed managerial employees.
If the employer wants to restrict the part-time employee’s ability to compete with the company post-employment, the agreement should include a valid and enforceable non-competition clause. Legal counsel should be consulted to determine the enforceability of a non-competition clause.
The subject of a non-solicitation of clients and/or employees of the company may also require special attention. To the extent applicable, there should be a clear and unrestricted agreement as to the duration, scope, and application of such agreements post-termination. The agreement should also contain a choice of law and the employee’s signature of acknowledgment of having read, understood, and agreed to the terms of the contract.
Legal Compliance and Considerations
When drafting a part-time employment agreement, employers must be cognizant of the legal issues that may impact their agreement. In Canada, provincial and territorial labor laws require that an employment agreement relating to a part-time employment relationship comply with minimum standards governing wages, hours of work, overtime pay, holiday pay, vacation pay and parental, maternity and sick leaves. To minimize the risk of a claim, a well-drafted employment contract should clearly describe the pay structure (including any overtime provisions), the typical hours of work and the various leave entitlements to which a part-time employee may be entitled (including any statutory leaves). There are also a number of federal laws that apply to the employment of workers in the federally-regulated industries as well as those with employees in federally-regulated industries (i.e.) banks, airlines, railways, shipping companies, etc.). Examples include the National Labour Relations Act, the Canada Labour Code, the Employment Equity Act and the Canadian Human Rights Act. Not just for federally-regulated industries, it is also prudent for employers to review and comply with any applicable federal or provincial anti-discrimination laws, like those dealing with age and disability, to ensure that no part-time employee is discriminated against for reasons connected with a personal characteristic protected by law. Moreover, if an employee is represented by a union, the employment agreement cannot override any collective agreements relating to his or her employment and must comply with applicable labor-management legislation. From an employee perspective, it is critical that the part-time employment agreement complies with statutory employment standards addressing required employee rights. Any provision that provides less vacation, overtime pay, leaves of absence or wage protection than mandated by law will be held void and the employee will be able to sue his or her employer for damages. Any amount that exceeds minimum statutory requirements may be enforceable by a court provided both parties have freely negotiated those terms.
Making Changes in the Agreement for Different Job Functions
Depending on the industry, employee group, or specific job function, there may be unique factors that must be considered when drafting a part-time employment agreement.
For example, physicians and other health care professionals may be subject to additional rules or guidelines from a professional regulatory body, or may be subject to industry yet specific standards of care or practices for their professional designation. This could include standards outlining hours of practice, specific practice locations, as well as other requirements that may be specific to their profession, some of which must be included in a part-time contract of employment.
Retail employees, sales staff and information technology professionals may be subject to bonuses or commissions , which could be a factor in the drafting of a part-time employment agreement. These types of positions may also be subject to varying hours of practice or availability that may require specific obligations to be included in a part-time employment agreement, including expectations regarding on-call or emergency coverage, availability for travel to specific jurisdictions, or evening, weekend or holiday availability.
More likely than not a part-time employment contract will be affected by some industry-specific or job function-specific factors. In determining hours of work, availability, obligations, confidentiality, or conflict of interest restrictions these industry-specific requirements must be considered.
Sample Part-Time Employment Agreement
This part-time employment agreement ("Agreement") dated this __ day of _____, 20__, is made between _________("Employer"), a Pennsylvania corporation located at _____________________________________________________and __________("Employee"), an individual residing at _______________________________who agrees to provide services to Employer under the following terms and conditions:
- Services. Employee agrees to perform and to devote their best efforts towards the services customarily absorbed by the position of ____________ as set forth in the job description of attached hereto. Employee agrees to work _______ hours per week to be set by Employer. The Employee recognizes that the specific services to be performed and the hours of work may be modified from time to time with or without notice at the Employer’s discretion.
- Term. This Agreement shall commence on the _______ day of ___________, 20__ and shall continue for a period of _______. The Agreement may be terminated with or without cause by either party upon _______ advance written notice.
- Compensation. Employer agrees to compensate Employee for all services rendered under this Agreement at the rate of $_________ per __________ (hour, week, month) in accordance with Employer’s payroll policies. Employee will be entitled to the following benefits: _________________.
- Acceptance. Employer believes that Employee merit the position and will faithfully and satisfactorily provide services. If this is incorrect Employee is instructed to refuse this Agreement.
- Other Benefits. Employee shall be entitled to any other rights and benefits set forth in other provisions of the Employee Handbook and any other policies or procedures as set forth by the Employer.
- Choice of Law. This Agreement shall be interpreted and governed under the substantive laws of the Commonwealth of Pennsylvania.
Negotiating with Part-Time Employees
When determining the terms of a part-time employee’s employment, employers should be aware that this individual will work fewer hours and days in comparison to a full-time employee and will receive a reduced salary. However, just as with any other employee, you may still have the opportunity to negotiate different aspects of employment. As such, it is important for employers to understand how to effectively approach the discussion of negotiated terms with their part-time staff members.
One way of presenting a developed employment agreement to part-time employees is by creating a list of benefits that correspond to the level of hours worked, with part-time hours equating to fewer hours for each benefit. Make sure to review this list carefully with your employee before beginning the discussion of negotiating terms. Once you have presented this information, you can then openly discuss which benefits your part-time employee is interested in receiving and what level of benefits they require. For example, if an employee works 20 hours per week but feels that this allowance is not suitable to meet their needs, they may request to be compensated for a higher amount of hours . Alternatively, if an employee currently works 20 hours per week but wishes to increase the amount of hours they work to 30 per week, then wages and benefits must be adjusted to align with this increase.
Another strategy is to assemble a list of benefits that employees may pick and choose to designate to their choice of a pro-rated benefit, part-time or full-time benefits. Giving your employee the chance to choose which benefits they are offered (and in what proportion) will greatly aid them in developing their expected employment terms.
It is also important to remember that although typically a part-time employee will be entitled to fewer benefits than a full-time employee, full-time and part-time employees are often entitled to the same types and levels of benefits. For example, both a part-time employee and a full-time employee may be entitled to receive equal health benefits. Or, if you offer paid vacation time, you can either offer the same number of days off or pro-rate the amount of time based on hours or length of employment.