Drafting a Complete Part-Time Employment Contract: A Sample Guide

Introduction to Part-Time Employment Contracts

Part-time employment contracts differ significantly from the full-time employment contracts in that they are often assumed rather than prepared. Some employers do not realize that employees who work less than 35 hours per week may be entitled to the same rights as full-time employees. This means for example, that a part-time worker is entitled to holiday pay. Part-time employees have the same rights as full time employees with regard to discrimination. There are a number of entitlements which a part time employee is entitled to under law and as an employer , you must make sure that these entitlements are granted.
It is therefore necessary to carefully consider and draw up a written contract of employment with a part-time employee. A well prepared contract will ensure that you avoid the potential challenges that could arise down the line. A well-written contract of employment lays out terms and conditions of employment. Any employer who fails to provide an employee with a written copy of their contract could find themselves in trouble if the employee later disputes a term of employment. A contract of employment sets out the basic arrangement between both parties and it should avoid any misunderstandings about the duties and responsibilities expected from either the employer or the employee.
Emphasising the benefits for securing your business through a part-time employment contract, they will provide protection not just for the employee but also the employer. For example, the employer may wish to add a restrictive covenant clause a contract of employment. This is a provision (usually a post-termination restriction that applies to the ex-employee) that prohibits the employee from doing certain things after they leave the company.

Key Components of a Part-Time Employment Contract

A well-drafted contract is essential for regulating the relationship between an employer and a part time employee. The contract should, in particular, cover the following points:
Job title and duties
The contract should specify the employee’s job title and outline the duties and responsibilities that the employee is expected to perform.
Working hours
If the employee is contracted to work specific hours, the contract should include a clear description of those hours. An employee may technically be employed on a part time basis but still be obligated to work similar hours as a full time employee. The contract should therefore specify the expected working hours, any flexibility the employer will have with regards to those hours, and the consequences if the employee fails to adhere to them.
Basic pay rate
It is advisable to specify the employee’s basic pay rate, specifies whether the employee will be paid on an hourly or monthly basis and including details about when pay should be made (such as at the end of each month or within a certain number of days after the end of the month), pay increases, deductions and whether any bonuses will be payable.
For example:
Termination
If the contract is for a fixed term, the contractual termination provisions will govern the employee’s entitlement to notice on termination. If the employment is being ended by the employer with immediate effect for gross misconduct, the employment contract will generally include a list of examples of the types of acts that would constitute gross misconduct. For more information on gross misconduct in general and constructing a dismissal for gross misconduct and making such a dismissal fair in law, see our article "Gross Misconduct".
If the employment contract can be terminated by either party other than at the expiry of the fixed term specified in the contract, a longer notice period will normally be required from the employer, such as one month, for fairness, although two week’s notice may be sufficient in certain circumstances. It is perfectly acceptable for the notice period to increase incrementally after a certain period of employment, and for the notice period to be lengthened should the employee be promoted. In addition, the employer may also want to consider whether to offer enhanced severance pay in such contracts, for example if the employee’s services are terminated as a result of redundancy.
Intellectual Property and Confidentiality
The contracts should specify who owns the intellectual property created by the employee in the course of his or her employment. In the absence of a detailed express term in the employment contract to say otherwise, the Intellectual Property Rights of the employee will belong to the employee. UK law assigns the ownership of copyrights in works produced by an employee in the course of his or her employment to the employer. However, the employee will still have a right to be identified as the author of the work in certain circumstances, and the right to object to derogatory treatment of the work.
Typical confidentiality obligations under English law will only arise where an employee has received information which is confidential due to its nature. Parties to an employment contract may consider whether to expressly restrict an employee’s use of knowledge acquired before his employment started or to impose time limits on the applicability of any post-termination restrictions.
Agreements prohibiting the misuse or disclosure of confidential information beyond the point at which it has ceased to be confidential may be enforceable in certain circumstances.
Restrictive Covenants
The contract may also wish to specify any post-termination restrictions to which the employee will be subject for a defined period after termination, such as agreeing not to compete with the employer, join a competitor, solicit customers or otherwise use the employer’s confidential information inappropriately.

Creating a Part-Time Employment Contract

Part-time employment contracts are drafted according to the same principles as full-time employment contracts. While some of the terms may not apply, such as full-time work week hours or full-time employment benefits, all must be adapted for a part-time employee. Care must also be taken to avoid specifying full-time hours or benefits for the part-time worker.
The part-time employment contract should set out:
•terms of the job function for clear expectation setting
•the basis and amount of compensation (hours and rates)
•required hours and flexibility for scheduling of those hours
•how communication with the employer should occur (e.g., notice for unanticipated schedule changes)
•provision for notice of termination of employment by either party
•hours not guaranteed and scheduling flexibility required
•pay for scheduled hours but not for hours cancelled without notice
•employment tardiness or cancellation impacts compensation
•notice for (1) absences without reason for (insert period) and (2) termination of work relationships
•multi-employer work, work locations and notice of cancellation
•work availability on short notice or as needed
•maximum hours exceed weekly maximum hours
•reducing scheduled hours with (insert time) notice
•job sharing optional or compulsory
•minimum hours guaranteed
•termination pay on early termination of employment
It is critical that appropriate legal language is used for each term and the entire part-time employment contract is formatted to deliver maximum effect and minimum opportunity for an employer denial or an employee challenge.

Typical Mistakes in Part-Time Employment Contracts

One of the most common mistakes made when it comes to employment contracts involves a failure to limit the provision of benefits. Many employers roll part-time workers into the same pools as full-time employees in regards to certain benefits. This is a major misstep because, among other things, it puts a financial burden on the part-time employer that can be avoided. It makes sense for employers to reserve full-time benefits only for full-time workers.
Another mistake is not being clear about expectations. It is important for employers to define in detail when work days will occur and how long work days will be in writing . If the employee expects to be paid for more hours than what is identified in the contract, it will be necessary to deal with that issue. It is better to be clear about expectations from the outset to avoid conflict later.
Related to setting clear expectations are delineating advancement opportunities and route to them. If an employee knows that advancement will not occur for at least a set period or that advancement can only occur through a rigorous process, there can be no question as to how they will or won’t be promoted.

Part-Time Employment Contract Template

PART-TIME EMPLOYMENT CONTRACT
DATED this __________ day of ____________, 20___.
BETWEEN:
_____________________________________,
(hereinafter referred to as the "Employer")
AND
____________________________________,
(hereinafter referred to as the "Employee")

1. ENGAGEMENT

Subject to the provisions of this Agreement, the Employer hereby employs the Employee and the Employee hereby agrees to serve the Employer, in the capacity of _________________________.

2. DUTIES

The Employee shall faithfully perform his/her duties on behalf of the Employer.

3. SALARY

The remuneration of the Employee shall be the net salary of $__________ per month payable in accordance with the Employer’s regular payroll schedule, which shall not exceed once monthly. The Employee shall be responsible for all required and optional deductions from salary and Employee understands that his/her remuneration may be supplemented by other benefits, allowances and perquisites at the Employer’s sole discretion.

4. AT WILL

The Employee’s employment with the Employer shall be on an "at will" basis. This means that either the Employee or the Employer may terminate this Agreement at any time, with or without cause, upon _______ days’ notice to the other or pay in lieu thereof. Upon termination of this Agreement for any reason, the Employee shall be entitled to receive payment for all work performed and to be paid for vacation earned but not taken. The Employee acknowledges that nothing in this Agreement shall be construed as a promise or expectation of continued employment with the Employer.

5. WORKING HOURS

The Employee shall work no more than __________ hours per week during the term of this Agreement.

6. BENEFITS

The Employee will be entitled to the same group medical and dental benefits, life and long term disability benefits, group RRSP benefits, vacation benefits, short term disability benefits, pension plan benefits, sick leave, severance pay and expense reimbursements that are provided to all other part-time employees. Subject to the provisions of the Employee Benefit Plans and internal policies, any and all costs resulting from the Employee’s participation in the same benefits shall be borne by the Employee (as opposed to the Employer).

7. CONFIDENTIALITY

The Employee agrees to keep confidential all private, proprietary, or otherwise confidential information or materials obtained by the Employee while performing services for the Employer and to use such information or materials solely for the benefit of the Employer. If the Employee is ever uncertain as to whether information is confidential, the Employee shall immediately disclose the information to the Employer.

8. COMPLIANCE WITH POLICIES

The Employee acknowledges that he/she has read and understands the Employer’s Policies and Procedures and agrees to conduct himself/herself in accordance therewith. The Employee acknowledges that the Employer reserves the right to modify, amend or terminate its Policies and Procedures at any time.

9. COMPLIANCE WITH THE CODE OF CONDUCT

The Employee acknowledges that he/she has read and understands the Code of Conduct and agrees to conduct himself/herself in accordance therewith. The Employee acknowledges that the Employer reserves the right to modify, amend or terminate its Code of Conduct at any time.

10. GOVERNING LAW

This Agreement shall be governed by the laws of the Province of ______________________. Any amendments to this Agreement shall be in writing.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

Legal Guidance and Resources

Given the importance of the employment contract, it is very important that you get legal advice to ensure that your contract is specific to the needs of your business and that your contract and position description cover all areas relevant to your employment relationship. We strongly recommend that you get a solicitor to review how you drafted your contract and/or position description.
Whilst the sample contract and position description above provides a good base, it may not cover all your needs.
Also, if you later on have an employment issue with a staff member, either whilst employed or after they have exited your practice , the Fair Work Commission will try to interpret the contract in favour of employment, so it is essential that you properly draft your contract.
You should also ensure that your contract complies with all relevant awards, agreements or minimum entitlements, and a solicitor can assist with that. You should also check that your contract does not breach the National Employment Standards, and the Annual Leave Act 1976.
Legal Aid NSW has a Health Care Rights site that provides free medical legal advice to staff, employers and other NSW public health service managers and executives through a consultancy service known as the Health Care Rights Service.