Casual Work Meaning in Canada: Employee Rights Explained

Casual work — sometimes called casual employment or a casual position — refers to jobs that are irregular, unpredictable, and often temporary. These roles can offer flexibility for both workers and employers, but they also raise important questions about job security, benefits, and legal rights.

If you’ve ever wondered “What does casual work mean?” or “Am I entitled to benefits as a casual employee?” — here’s what you need to know.

What Does “Casual Work” Mean in Canada?

Under the Canada Revenue Agency (CRA), casual employment has a very specific meaning when determining whether a job is pensionable (under the Canada Pension Plan) and insurable (under Employment Insurance).

To be considered casual employment by the CRA, the work must meet two conditions:

1. The work must be occasional, irregular, or unpredictable
2. It must be for a purpose other than the employer’s regular business

If both apply, the job is not pensionable or insurable — meaning neither the employer nor the employee must make CPP or EI contributions.

If only one applies, the CRA considers it regular employment, and contributions are required.

Examples

• A florist hires someone to paint their storefront → the work is irregular but helps the business → pensionable and insurable.A florist hires someone to paint their home → the work is irregular and not related to the business → not pensionable or insurable.

Casual Work vs. Permanent Work

While casual roles are common in healthcare, education, retail, and hospitality, they differ significantly from permanent or full-time jobs.

Even if your employer calls you “casual,” you are still legally an employee — not an independent contractor — and have access to key protections under Canadian and provincial law.

Casual Employment Under Ontario’s ESA

In Ontario, the Employment Standards Act (ESA) protects nearly all workers — including those in casual, part-time, or temporary positions.

Employers can’t avoid their obligations simply by labeling a job “casual.”

Casual Workers Have the Same Core Rights As Other Employees

• Minimum Wage: You must be paid at least Ontario’s minimum wage, with no exceptions.
• Vacation Pay: At least 4% of gross wages (6% after five years) (Vacation Pay Ontario).
• Breaks and Hours: 11 hours off between shifts and a 30-minute meal break after five hours (Ontario Break Laws).
• Overtime Pay: 1.5× pay after 44 hours per week (unless exempt).
• Public Holiday Pay: You may qualify if you worked your regular shifts before and after a holiday (Ontario Stat Holidays).
• Statutory Leaves: Access to sick leave, family responsibility leave, bereavement leave, pregnancy and parental leave, and declared emergency leave.

Termination and Severance Rights for Casual Employees

Even casual employees have rights when their work ends. Under the ESA, you’re entitled to:

• Notice of termination or termination pay
• Severance pay Ontario

At common law, courts often award more than ESA minimums — especially if your “casual” role became long-term or you relied on it for steady income. Severance pay can be up to 24 months’ pay, depending on different factors.

If your employer ends your employment suddenly without proper notice or pay, you may have a wrongful dismissal claim, even as a casual worker.

Casual Employee vs. Independent Contractor

Some employers try to classify workers as independent contractors in Ontario or casual hires to reduce costs.

But under the law, job title doesn’t determine your status — the nature of the relationship does.

If your employer:

• Controls your schedule or duties,
• Provides tools or equipment, and
• Pays you like a regular employee (hourly or salary),

Then you may actually be an employee, entitled to full ESA and common-law protections.

Human Rights Still Protect Casual Workers

Even if your hours are limited or unpredictable, you’re still protected by the Ontario Human Rights Code (and similar provincial laws across Canada).

That means your employer can’t discriminate against you based on race, gender, age, disability, religion, or family status — from hiring to termination.

Harassment, retaliation, or denial of workplace accommodations are equally unlawful, regardless of whether your employment is full-time, part-time, or casual.

Casual Work and CPP/EI: What Employers Should Know

Employers are responsible for correctly determining whether casual work is pensionable or insurable.

If you hire someone casually for your business — even just occasionally — you likely must still deduct and remit CPP and EI.

Failing to do so can lead to:

• CRA penalties and interest,
• Retroactive contribution requirements, and
• Potential employee complaints or audits.

Employers should review casual arrangements annually to ensure compliance with both the Employment Standards Act and CRA requirements.

Federal vs. Provincial Definitions of Casual Employment

FAQs About Casual Work in Canada

1. What Does a Casual Position Mean?

A casual position means you’re hired on an as-needed basis, often without guaranteed weekly hours. You remain an employee, but your schedule may change frequently.

2. Do Casual Workers Get Severance Pay?

Yes — if you meet certain conditions under the ESA or common law.

3. Are Casual Jobs Pensionable or Insurable?

Only if the work relates to the employer’s business. If not, the CRA may consider it non-pensionable and non-insurable.

4. What Rights Do Casual Employees Have in Ontario?

Casual employees have the same minimum wage, overtime, vacation, and leave rights as full-time workers under the Employment Standards Act.

5. Can Casual Employees Be Terminated Without Notice?

No. Even short-term or irregular employees are entitled to proper notice or pay in lieu once they’ve worked three months continuously.

Key Takeaways

• Casual work means irregular or short-term employment, but not a lack of rights.
• CRA determines if casual jobs are pensionable or insurable for CPP/EI.
• The ESA ensures casual employees receive core entitlements like minimum wage, overtime, and vacation pay.
• Misclassification as a “casual” or “contractor” can lead to legal and financial issues for employers.
• Casual workers are protected under human rights and employment laws across Canada.

Speak with an Employment Lawyer

If you’ve been denied overtime, benefits, or severance because you were labeled a “casual employee,” Samfiru Tumarkin LLP can help.

Our team has:

• 👥 Successfully represented 50,000+ Canadians
• 💰 Secured millions in severance payouts
• ⚖️ Settled over 99% of cases out of court
• 📱 Free Termination Consultations — in some, but not all, cases
• ⭐ Earned 3,000+ 5-star Google reviews
• 🏆 Named on of Canada’s Best Law Firms

Call 1-855-821-5900 or request a consultation online.