What is a Casual Employee
A casual employee is an employee who has no assured working hours, works irregular shifts without paid entitlements (unless stated within an agreement or award), can refuse or swap shifts and has the ability to terminate employment with no or limited notice.
According to the Fair Work Act, an employee is a casual if they:
- Are offered a job;
- Have no assured working hours or no firm advanced commitment; and
- Have irregular shift patterns that will change to suit employer need.
The National Employment Standards states that Casual Employees are entitled to:
- Unpaid community service leave;
- 2 days unpaid carer’s leave and 2 days compassionate leave as required;
- 5 days unpaid Family and Domestic Violence Leave within a 12 month period;
- A casual loading on top of the hourly wage;
- Request unpaid parental leave if they have worked for the employee (as a casual or permanent employee) on a regular basis for 12 months;
- Request flexible work arrangements if they have worked for the employee (as a casual or permanent employee) on a regular basis for 12 months; and
- Casual conversion opportunities following 12 months with an employer.
How does casual employment differ from permanent part and full time employment?
Full time and part time employees differ from casual employees as when they are offered a job they are given advanced commitment or assured hours of work, that will see them receive regular shifts/hours of work each week within ongoing employment.
An employee will remain casual until:
- The employer sends notice of termination (notice is not required by The National Employment Standards, but best practice is advised in accordance with Company Termination Policy and further clarification sought of notice periods within employment agreement or award specifications);
- The employee advises notice of resignation (notice may or may not be required in accordance with employment agreement or award);
- An employee makes a request of casual conversion and the employee accepts; or
- An employer offers casual conversion and the employee accepts.
Are you offering ‘no advanced commitment’?
- Do you as the employer have the choice to offer work ‘when’ or ‘as required’?
- Is it the employee’s choice to accept or refuse when they work?
- Is the employment described as casual within the agreed employment agreement or award classification?
- Is the employee paid casual loading or a specified pay rate in accordance with a casual classification?
If you have answered ‘yes’ to all 4 of these questions, then you are offering ‘no advanced commitment’ defining the employee as causal. If you have concerns or do not know the answer to some of the above questions, it would be in your best interest to clarify such or seek third party assistance to avoid employee claims that may result in backpay of entitlements with interest! Assurance HR Management act as third-party agency for many businesses, offering industrial relation services in which we often review employment status, draft new employment agreements and conduct casual conversions. For more information contact our team on 1800 577 515.
You can also head to our Employing Casuals – What you NEED to know blog post for more information on this topic.
