What Is a Part-Time Employment Contract?

A part-time employment contract is a legal document between the employer and employee. A part-time employee works less than a full-timer. Some workplaces consider workers who work under 30 hours a week part-time, but most classify them as working under 35 hours a week. The agreement outlines the terms and creates a binding contract. This contract can detail the job’s duties, hours, pay, and conditions.

Adding clear terms helps everyone know what to expect from employment. A written contract also allows each party to review the details before signing.

Why Use a Part-Time Employment Contract

A part-time contract offers many benefits for employers, such as:

Saving costs: Part-time employees may have lower wages and fewer benefits than full-time employees. Part-time also allows employers to use workers only when they’re truly needed.
Increasing flexibility: Having part-time workers provides flexibility for scheduling and staffing. You can offer shorter shifts or adjust weekly hours as needed.
Meeting seasonal needs: Companies that need extra help during busy seasons can use part-time workers.
Improving workplace morale: A part-time schedule improves work-life balance and morale. The part-time hours allow employees more time for personal matters.

How to Write a Part-Time Employment Contract

Writing a part-time employee contract requires several steps. Use our part-time employment contract template or draft your own with the following steps.

1. Add Employee and Job Position Details

Your part-time employment agreement should include details about the job and the employee. List the full name of the employee and the company. Also, include the date of the agreement, the job title, and the job duties. Lastly, specify the employee’s part-time status and hourly requirements.

2. Define the Employment Term

Next, you must choose whether the new hire is a fixed-term or at-will employee. A fixed term means there is an end date for employment. If there is no specific end date, choose at-will to show ongoing employment. An at-will contract allows either party to end the contract at any time.

3. Specify Compensation

Include the details of all compensation for your part-time employee, such as:

The expected pay rate
Whether pay is hourly, per week, per month, or annually
How often the employee will receive payment
What types of deductions are withheld
If the employee qualifies for overtime pay

4. Share Work Location Details

The contract should include the primary location of the employee’s work or office. For example, your in-house employees perform their duties at the company headquarters. You should also define requirements for remote employees who work from home.

5. Explain Time Off and Benefits

Many part-time employees do not receive the same benefits as full-time employees. You’ll want to clarify benefit qualifications and provide details on any benefits.

6. Add a Confidentiality Clause

Consider adding a non-disclosure or confidentiality agreement for sensitive information. This ensures employees won’t share private details with outside parties. You can use this to protect the company’s ideas and intellectual property.

Legal Considerations for Part-Time Contracts

A part-time contract requires a company to make certain legal considerations. Ensuring compliance protects you and your company from disputes, fines, and more. Review the following considerations for part-time contracts.

Part-Time vs. Full-Time Employees

Part-time and full-time employees differ in their work hours, benefits, and arrangements. Employers need to identify full-time and part-time employees. Classifying the type of employee helps both parties understand the benefits and expectations.

Most employers classify full-time employees as those who work at least 35 or 40 hours weekly. For employer healthcare mandates, the ACA defines full-time as an average of 30 hours a week [1] .

Both full-time and part-time employees can qualify for overtime pay if they work more than 40 hours a week. While part-time workers don’t often exceed 40 hours, they may get overtime if they take extra hours.

Misclassification Risks

Correctly classifying your employees ensures proper tax processes, protections, and benefits. Ensure you don’t use an employee’s part-time status to misclassify them as independent contractors. While part-time and independent contractors may have similarities, misclassification includes risks, such as:

Legal disputes: Misclassified employees can file suits for unpaid wages and benefits. They can also claim violations if the employer doesn’t meet requirements for part-time employment.
Government fines: Misclassification can result in fines for unpaid taxes or minimum wage violations.
Tax issues: Employers may pay back taxes for unpaid social security, Medicare, or unemployment withholdings.

Contract Terms

Part-time contract terms can differ depending on the role and company. This makes it necessary to specify the exact conditions in your document. Include information about the contract terms, such as:

At-will status: An at-will contract allows the employee to end the employment at any time. If you plan to use an at-will agreement, specify this in the contract.
Employment term length: Fixed-term contracts include a start and end date to show the length of employment.
Probationary periods: Include any terms related to a probationary period. This may include a period of at-will employment before the employee gains more permanent status.
Termination processes: Add information about a required notice period or the causes for ending the agreement. Include the processes for both the employer and employee.