Casual employment can be used by different businesses for their benefit. The use of casual and fixed-term employees can be an effective tool to address peaks and troughs in the workload of the business. Utilising this type of employee is a great way to remain flexible for small businesses and allows employers to have a consistent backup, should things not go according to plan.
What is casual employment?
A casual employee works irregularly with no expectation of ongoing employment, and they will work normally on an ‘as and when required’ basis which should be clear in their employment agreement.
Note: Part-time employees are not casual workers. An employee with a regular and ongoing work pattern will be considered a permanent employee.
Employment agreements for casual employment
In developing an agreement for casuals, it is a good practice to include a clause outlining that the casual employee should not expect regular hours of work. The hours of work clause may outline that the workload will often change, how a casual employee will be advised of work, and that they are not obliged to make themselves available for work.
Are casual employees expected to accept any offer of work?
While casual employees may be prepared for sudden demands on their time, they are not required to accept any offers of work. They may have other conflicting demands or secondary jobs that require their time.
Are casual employees entitled to annual leave?
Just because an employee is on casual employment does not mean they miss out on basic entitlements such as annual holidays.
If the employee’s employment pattern is so intermittent or irregular that it is not possible or practicable to attempt to provide four weeks of paid annual holidays, the employee may be paid annual holiday pay with their regular pay (i.e. on a paid-as-you-go basis) provided that it is not less than 8% of the employee’s gross weekly earnings. To compensate for them not earning annual leave, an employer must pay an extra 8% of their salary or wage each pay cycle. The annual holiday pay is an identifiable and separate part of the employee’s pay (and on their payslip).
An employer should review the work pattern often to see if a regular work cycle has developed. Should a regular pattern of work develop, the employee will likely be considered a permanent employee, and the employer should issue a permanent employment agreement. This means that the employee will have set and regular hours and will accrue annual leave instead.
Casual employees who work on an intermittent and irregular basis are not entitled to paid sick leave and bereavement leave.
Are casual employees entitled to sick leave?
Casual employees who work on an intermittent and irregular basis are not entitled to paid sick leave and bereavement leave.
However, they may become entitled to 10 days of paid sick leave if after six months of employment they have:
- Worked an average of at least 10 hours each week; and
- At least one hour a week or 40 hours a month.
Casual employees have the potential to be utilised with great success, however, employers must manage their hours and entitlements properly to ensure that they remain genuinely casual. For expert advice call Peninsula 24/7.