Casual employment

It is important for employers and employees to know that there are important differences between casual and permanent work.

Casual or Permanent Employment Publication

Generally casual employees are employed on an irregular basis with no set roster or routine as to when they work. Furthermore, there is no guarantee of ongoing employment. Casuals, unlike permanent employees, are employed on an 'as needs' basis, often to meet a changing workload within the workplace.

Employers must tell employees before they start work that they are employed as casual employees with no entitlement to annual leave or sick leave.

Casual employees receive a loading of at least 20 per cent of the ordinary rate of pay to compensate for lack of other employment benefits such as security of employment, sick leave, annual leave and payment for public holidays. Casual employees are entitled to paid bereavement leave.

The Minimum Conditions of Employment Act 1993 provides a minimum loading for casual employees of at least 20 per cent. The specific loading for casual employees will depend on the award or agreement that applies to their employment. Some awards or agreements may also prescribe certain conditions or set a minimum or maximum number of hours casual employees may work in each engagement. Contact Wageline on 1300 655 266 for further information.

Getting casual employment right

There is a risk that longer-term casual employees who work regular hours may be considered to be permanent employees and not casuals. If a casual employee is deemed permanent by a court or the Industrial Relations Commission an employer may be required to provide employment benefits such as sick leave, annual leave and payment for public holidays.

Casual employment may be an appropriate option:

at busy times or peak periods that require a larger labour force;
for seasonal work;
when other employees are sick or on leave; and
if the business has variable demand.

Is the employment permanent or casual?

There can be confusion over whether employment should be classified as permanent or casual. The following points highlight the employment characteristics of casual employees:

recognised as casuals from the beginning of their employment;
usually work for short periods of time on an irregular basis with the actual hours varying for week to week;
employed and paid by the hour and do no receive annual leave or sick leave;
do no have consistent starting or finishing time, or regular hours of work;
generally contacted regularly and asked to work, rather than just knowing when they are required;
have no expectation of ongoing work; and
are free to refuse offers of work at any time due to other commitments.

Permanent employment is different from casual employment. Permanent employees have an on-going relationship with their employer that is regular and systematic. They are engaged for a fixed number of hours or days each week or fortnight, have an expectation of ongoing work, and receive benefits such as annual leave and sick leave on a proportionate basis to the number of hours they work.