In this article, you will learn more about Permanent/Regular and Temporary Work in Canada. If you missed Part 1: Full-Time and Part-Time Employment, you can find it here.
3.) Permanent/Regular
In this type of employment, the contract does not have a predetermined end date and is subject to termination policies. The schedule is consistent in this type of employment and could be either full-time or part-time. The pay includes base salary/Hourly wage along with overtime, bonuses & incentives, and allowances as applicable.
As of the second quarter of 2023, approximately 82% of all workers in Canada were employed in permanent, full-time positions. (6)
Public Administration, Health Care, and Education are sectors which commonly tend to offer a higher proportion of permanent jobs, especially in the public sector, where stability is a hallmark. Professional, Scientific, and Technical Services sectors have a high percentage of permanent positions due to the specialized nature of the work and long-term client relationships.
4.) Temporary
Temporary work or temporary employment to an employment situation where the working arrangement is limited to a certain period based on the needs of the employing organization. Temporary employment accounts for around 12% of the total workforce. These roles may be full-time or part-time, contract-based, seasonal, or temporary to cover a specific need, such as maternity leave or project work. Employees work non-permanent jobs including roles like consultants, freelancers, contractors and seasonal employees hired for specific-term assignments or task-based work. The pay includes hourly wage/per project, overtime, limited/no benefits, limited/No Bonus & incentives, allowance and reimbursements as applicable.
While permanent employment remains dominant in manufacturing, there has been an increase in temporary and contract work in certain sub-sectors, particularly in regions undergoing significant restructuring (e.g., automotive or resource-based industries).
Retail and Hospitality industries often have a larger percentage of temporary and part-time positions due to seasonality and fluctuating demand, though permanent, full-time jobs still make up a significant portion.
Although temporary employees represent a relatively small number of overall employees, In the last 20 years, temporary employment has grown by over 50% in the Canadian market (7).
The sub-types of temporary employment are:
- Fixed term /On-roll contract: With a fixed-term contract, an employee has steady employment for a known period. You also have rights like getting paid at least the minimum wage, having set working hours, and getting paid holidays. A fixed-term contract can be common for seasonal jobs, project-based work, or covering for someone on long-term leave. Around 14% of employees in the Canadian workforce fall under this category.
- Seasonal employment: These contracts are typically for specific seasons or periods, such as summer jobs or holiday work. They may be full-time or part-time. Around 2-4% of the workforce comes under the seasonal workforce category mostly prevailing in Agriculture and tourism sector.
- Contract: Employees work for Independent contractors and these independent contractors operate their own businesses and provide services to other businesses. They are responsible for their taxes and do not receive employee benefits.
- Apprentice: The employee is a part of a structured program that combines on-the-job training with classroom instruction, aimed at teaching a specific trade or skill. This is usually for a fixed duration depending on the trade demand.
- Internship: The employee, often a student or recent graduate, gains work experience and specific exposure to an industry or to gain practical knowledge. The duration could be from a few weeks to a few months. They take up a small portion of the total workforce in an organization
- Freelance: Freelancers operate as independent contractors manage their own business affairs. They can take up diverse projects across different employers allowing flexibility in schedule and type of work. Payment is usually per hour or per project with no benefits. About 10-12% fall under the freelance category or independent contracting, this is prominently present in media, tech and creative industries. (8)
These varied types of employment help cater to a diverse labor market in Canada, supporting skills and preferences. They offer unique opportunities but may come with different levels of job security and benefits to the employees.
The type of employment will be clearly specified in the offer letter issued upon successful completion of the interview process. It is essential to verify that the terms outlined in the offer letter align with the agreed-upon conditions prior to formally accepting the offer.
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