Benefits for Part-time Staff (Benefit Tips ® - © 2018)

Many employers accumulate a contingent work force of part-time staff to manage labour demand fluctuations.  This practice became more expensive on January 1, 2018 when the Employment Standards Act was updated to increase the holiday pay for part-time staff from a prorated amount to the employee’s average daily wage.

The significance of this additional cost burden will likely prompt employers to consolidate their part-time workforce.  For example, if the average daily pay is $100, the statutory holiday pay for…

• one full-time employee is $900 per year ($100 x 9 days),
• five part-time employees is $4,500 per year ($100 x 9 days x 5 employees).

Pay equity for casual, part-time, temporary and seasonal employees was also introduced to the Ontario’s Employment Standards Act.  This expansion of wage parity to employment status further erodes the historical advantage of maintaining a pool of part-time staff.  These employees are now required to have the same wages as their full-time counterparts.

You are ill-prepared if your employee benefit plans do not align with the stratification of your workforce.  The impact on employee benefit costs can be managed effectively by varying coverage based on compensable factors such as seniority, occupation and income.  An independent benefit consultant can help you design a benefit plan that is suitable for your entire workforce.