# Is it illegal if my company puts part-time staff in a different pension scheme?

- Jurisdiction: Canada
- Practice area: Employment Law
- Published: 2026-11-06
- Last updated: 2026-11-06
- Canonical: https://lawasked.com/ca/employment-law/illegal-if-my-company-puts-part-time-staff

## Question

I have been working as a junior clerk at a large logistics firm in Ontario for about eighteen months now. Back in January 2023, when I first signed my contract, the company told me I would be enrolled in the standard company pension plan. However, last month, my supervisor sat me down and explained that because I am technically classified as a part-time employee working 20 hours a week, I have been placed into a completely different pension programme. This second plan has much lower contribution rates and doesn't offer the same long-term benefits as the one the full-time staff members receive. I checked with the HR department last Tuesday to see if I could switch, but they told me that because the groups are separated by their work hours and not by anything else, it is perfectly fine. I am quite worried that this is unfair treatment. I want to know if they are allowed to have two different types of retirement savings plans within the same office, as long as the split is based on how many hours we work rather than our age or where we come from. Is this considered a form of discrimination?

## Summary

No, it is generally not illegal for your company to have different pension plans based on your work hours. As long as the groups are not separated by a prohibited ground of discrimination, such as your age or race, the split is allowed.

## Analysis

Based on the information you provided, your company's decision to place you in a different pension program because you work 20 hours a week does not appear to violate the Canadian Human Rights Act. 

Under the law, the creation of separate pension funds or plans for different groups of employees is permitted. The law states that "the establishment of separate pension funds or plans for different groups of employees does not constitute the basis for a complaint... if the employees are not grouped in those funds or plans according to a prohibited ground of discrimination" [1]. This means that as long as your employer is using a legitimate factor—like your status as a part-time employee—rather than a prohibited ground like your race, religion, or age, they are allowed to have different plans [1].

In your case, you mentioned that the groups are separated by work hours and not by anything else. Because work hours are not a prohibited ground of discrimination, the different contribution rates and benefits you are receiving are likely legal. Discrimination occurs when an employer chooses to "differentiate adversely in relation to an employee, on a prohibited ground of discrimination" [2]. Since your treatment is based on your 20-hour work week and not a protected characteristic, it does not meet this definition of a discriminatory practice.

It is important to note that while this may feel unfair, the law allows for these distinctions in retirement savings structures. Please note that state, provincial, or local laws may add further rules regarding employment standards or specific pension regulations in Ontario.

## Statutory citations

- Canadian Human Rights Act, R.S.C., 1985, c. H-6, s. 21 - Funds and plans [in force] (https://laws-lois.justice.gc.ca/eng/acts/H-6/index.html#s-21)
  > The establishment of separate pension funds or plans for different groups of employees does not constitute the basis for a complaint... if the employees are not grouped in those funds or plans according to a prohibited ground of discrimination.
- Canadian Human Rights Act, R.S.C., 1985, c. H-6, s. 7 - Employment [in force] (https://laws-lois.justice.gc.ca/eng/acts/H-6/index.html#s-7)
  > to differentiate adversely in relation to an employee, on a prohibited ground of discrimination.

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