Peninsula often receives queries from employers who are confused when it comes to casual versus permanent employees. As there are key differences and entitlements which you as an employer need to be aware of, we have summarised the main features to consider.
Permanent employees
Permanent employees can be defined under a part-time or full-time agreement and are classified as having a guaranteed number of work hours per week. Mistaking a part-time employee as a casual is a common pitfall employers make. However, if your employee works part time but to regular set hours, they should be on a permanent part-time agreement.
Entitlements
Permanent employees are entitled to a paid day off on a public holiday, if it falls on a day they would normally have worked. If the employee does work such public holiday, they are entitled to paid time and a half for the actual hours work, as well as an alternate day off.
All employees are entitled to four weeks of annual leave after they have worked for you for a continuous period of 12 months. Annual leave may be taken at any time that is agreed between you and the employee.
After six months of continuous employment, both part-time and full-time employees are entitled to ten days of sick leave per year to care for themselves, or a dependant.
They may also be entitled to other types of leave such as parental leave, general election voting leave, defence forces volunteers leave, bereavement leave, and jury service leave if they meet certain conditions.
Casuals
Casual employees can be an incredibly useful resource for any business, as they are a way to meet your business needs, whilst maintaining a degree of flexibility. A casual employee works for your business intermittently and does not have set hours they must work during each rostered period.
A casual employee has no guarantee of hours, does not work regular patterns and is not obligated to agree to work when it is offered.
Entitlements
Casual employees are entitled to the same holiday leave entitlements as a permanent employee. However, a casual employee’s work pattern is so intermittent or irregular that it is not possible or practicable to attempt to provide four weeks paid annual holidays. As such the employee may be paid annual holidays at a rate of 8% of their gross earning with and on top of their regular pay.
Payment is made on a ‘pay-as-you-go’ basis. This should be set out in the employment agreement and shown as a separate calculation on any pay slips. Employees paid on a pay-as-you-go-basis do not become entitled to time off for annual holidays.
If a casual employee has worked for you for a continual six month period, and works at least 10 hours a week on average and at least one hour every week or 40 hours in every month, they are
entitled to sick and bereavement leave. They are not entitled to this leave if they do not meet this minimum requirement.
Peninsula can assist with determining whether your employees are permanent or casual, and their associated entitlements. If you have any questions around your obligations as an employer, or would like to discuss your staff, contact us today on 0800 422 005.
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