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

There are plenty of differences between part-time and full-time employment that employers should be aware of, and they go further than just full-time and part-time hours. Full-time and part-time employees receive different benefits, levels of job security and even have unique tax obligations. It is important to understand these differences as they relate to labour rights, compensation and overall work-life balance.

How many hours is part-time?

There is no standard legal definition of full-time or part-time employment in Canada, not even in the Canada Labour Code. The definition of these terms usually depends on employer-specific policies or collective agreements. In general, full-time employment is considered to be 30–40 hours worked per week, while part-time employment is anything less than 30 hours per week.

Full-time employees are generally considered to be “permanent” employees, in that their position is guaranteed until they are laid off or terminated. Full-time employees can also work on a contract or a temporary basis. In these cases, their entitlements and your obligations might be spelled out in an employment contract or other terms of employment.

Part-time vs. full-time compensation and benefits

Full-time and part-time employees typically earn different rates of compensation and benefits. Full-time employees generally earn a fixed salary or hourly wage that reflects their consistent work schedule and level of involvement with the company. They might also qualify for overtime pay if it is stipulated in their contract. Part-time workers often do not qualify for overtime, but their wages might still match that of their full-time equivalent.

Full-time employees also typically receive extended health benefits, such as coverage for paramedical practitioners, dental and vision care. Part-time employees often don’t qualify for these benefits, although they may still contribute to and receive some level of benefits coverage—just at a lower tier than their full-time counterparts. Full-time employees also earn more vacation time and are entitled to paid sick leave. In many provinces, employment standards often require you to offer a minimum of two weeks of paid vacation for full-time employees. Full-time employees may also have access to employer-sponsored pension plans or matching contributions to Registered Retirement Savings Plans (RRSPs).

Part-time vs. full-time job security and career advancement

Full-time employees enjoy greater job security and opportunities for career growth compared to their part-time counterparts. This is because they are usually more closely integrated into the company’s operations and hired on a permanent basis. Part-time employees, on the other hand, usually work on a casual or temporary basis and are not as close to the company’s operations. They are more likely to be laid off during economic downturns or when business needs fluctuate.

Full-time employees often have better opportunities for promotion and career growth within a company. They may receive more training and professional development support from their employer because they are seen as long-term investments. Part-time workers, on the other hand, may not have the same opportunities for advancement. Part-time employment can be a stepping stone to full-time positions. Many workers start in part-time roles and transition to full-time roles as positions become available or as their job performance is recognized. Many students who work on a part-time basis during the school year might become full-time employees over the summer, or after graduating from school.

The difference between full-time and-part time employment is often less pronounced in unionized settings, where both full-time and part-time workers may have access to collective bargaining agreements that protect against unfair dismissal, wage disparities and benefit differences. Part-time workers in these settings often enjoy similar job security and access to benefits as full-time workers.

Part-time vs. full-time tax implications and payroll deductions

Full-time and part-time employees face different tax obligations and access to social programs like Employment Insurance (EI) and the Canada Pension Plan (CPP). The only major difference is that full-time employees generally pay more into, and thus receive more of, both EI and CPP when the time comes for them to access these programs.

Part-time workers are eligible for Employment Insurance, provided they meet the minimum number of insurable hours required. For full-time workers, meeting the EI hours threshold is usually easier due to their consistent work schedule. Part-time workers, especially those working fewer hours, may struggle to accumulate the required hours and therefore have less access to EI benefits during periods of unemployment or parental leave.

Part-time vs. full-time employment in different provinces

Employment laws in Canada are specified by provincial regulations, meaning there can be variations in the treatment of full-time and part-time workers depending on the province or territory. For example, the number of hours required to be considered full-time might differ slightly between provinces. Similarly, the rules regarding overtime pay, vacation time and benefits may vary.

For instance, in Ontario, full-time employees are entitled to a minimum of two weeks of paid vacation after 12 months of employment, while part-time employees are entitled to a pro-rated amount based on the hours worked. In British Columbia, the distinction between full-time and part-time is less rigid, as benefits are often provided on a pro-rated basis depending on hours worked.

As an employer, it’s important to know the difference between full-time employees and part-time employees as it relates to the province(s) you do business in. Failure to follow labour laws can lead to untold circumstances that can be costly for your business. You should also make sure you are offering the proper benefits and making the correct deductions for your full-time and part-time employees, which can differ dramatically depending on which province(s) you do business in.