Casual and Part-Time Employment Agreements

Many businesses in Australia require flexibility when it comes to staffing. Casual and part-time employment agreements allow businesses to meet variable periods of demand, and to increase staffing without the complications that come from employing permanent workers. In fact, there are distinct differences between the full-time permanent employment agreement and the casual and part-time employment agreements. These similarities and differences are outlined in the following article.

Casual vs part-time employment agreements

The key differences between casual and part-time employment relate to the:

• Hours of work;
• Payment terms;
• Leave entitlements; and
• Termination processes.

Hours

Permanent part-time employees work less than 38 hours per week. These employees have an expectation of ongoing employment for a certain number of hours each week, usually on a set pattern. By contrast, a casual worker has no guarantee of working a certain number of hours per week. Casual employment has flexible hours that are typically organised by a roster, while part-time employment involves work shifts.

Casual workers are not obligated to work any hours they are offered, but they also cannot demand extra work hours. Most modern employment awards dictate a minimum and maximum number of work hours per casual shift. The minimum hours ensure that it is worthwhile for the employee to undertake the shift, while the maximum prevents the casual worker from working more than full-time hours. For instance, the Restaurant Industry Award 2020 sets the maximum number of hours for a casual worker at 12 hours per shift or per day, or 38 hours in any one week.

Payments

Part-time workers earn a consistent wage based on their ordinary work hours, and do not typically receive a penalty rate for reasonable overtime. Casual employees, on the other hand, are paid an hourly wage that may be higher due to a “casual loading”. This penalty rate is intended to recognise the fact that casual employees do not receive all of the same entitlements as permanent workers.

Employers are required to pay superannuation on the earnings of both casual and part-time employees, at a minimum rate of 10.5% for employees over 18. Employers are also required to pay superannuation for minor employees who work more than 30 hours per week.

Leave entitlements

Part-time employees have protected leave entitlements under the Fair Work Act 2009 and Fair Work Regulations 2009, such as annual leave and paid personal/carer’s leave. Part-time employees also accrue annual and personal, on a pro-rata basis depending on how many hours they usually work. Permanent part-time workers are entitled to a full provision of 10 days of paid family and domestic violence leave.

Casual employees have no such entitlement. However, casual workers do have some entitlements under the National Employment Standards (NES). For instance, casual employees have a protected right to take unpaid carer’s leave and unpaid compassionate leave, unpaid family and domestic violence leave, and unpaid community service leave.

Dismissal

Termination procedures are another area where there are important differences between the rights of casual and part-time workers. An employer can usually end the employment of a casual worker with one day’s notice, while part-time employees have minimum notice entitlements under the NES (although longer notice periods may be included in the employee’s award, enterprise agreement, or employment contract).

The notice period for a part-time worker begins the day after the employee is notified that their employment is ending and lasts for a period that is calculated based on the length of continuous service. Employees over the age of 45 who were with an employer for at least two years are entitled to an extra week of termination notice.

Most part-time employees are also entitled to a redundancy payout as part of their legal entitlements upon dismissal. Permanent employees who have worked for their employer for at least 6 months (or twelve months for smaller organisations) also have rights to procedural fairness and to dispute a dismissal that is harsh, unjust, or unreasonable.

Generally, casual employees have no such protection from unfair dismissal or right to receive redundancy payments, unless the worker can establish that their employment was regular and systematic, and they had a reasonable expectation of continuing work. Whether the casual worker has rights in this regard depends on the individual circumstances of each case. Although it is not necessary to have a reason when terminating a casual employee, it is still wise for an employee to have a valid reason for ending the employment relationship, as this demonstrates that the decision was not taken for a discriminatory reason.

Workplace health and safety

All workers in Australia have a right to safe and fair employment, whether they are full-time, part-time, or casual. As such, all workers are covered by workplace health and safety regulations, workers’ compensation procedures, and equal opportunity legislation. For instance, employers must provide all workers, whether casual or part-time, with adequate information and training to ensure that risk is minimised, and the workplace is reasonably safe. This means that employers must protect the physical and psychological health of their employees and manage risks that might arise. Work Cover schemes in each jurisdiction ensure that all workers, including casual workers, can make a compensation claim if they are injured at work. Naturally, employers also have a legal responsibility to ensure that casual and part-time employees are treated respectfully and fairly in the workplace.

Hiring casual or part-time workers can bring much-needed flexibility to staffing rosters. Understanding the differences between casual and part-time employment agreements can help an employer meet their legal obligations. Please contact the employment law team at Go To Court Lawyers for advice on employment agreements. Phone 1300 636 846 or use this contact form for assistance today.