When is casual really casual?
Lots of businesses rely upon casual employees, mainly due to the flexibility they afford the business, but be careful! When employing casual workers the employer needs to ensure that they are aware of all the obligations under the Fair Work Act to avoid landing themselves in a difficult and costly situation.
What is casual?
Think corner deli owner who needs a few hours in a busy period every now and then. There are no set days or specific hours there is no guarantee of ongoing work and the contract ends each time they finish. If you’re looking to employ someone under a casual arrangement then this is what you must keep in mind
A casual employee: has no guaranteed hours of work. Usually works irregular hours, doesn’t get paid sick or annual leave. Can end employment without notice, unless notice is required by a registered agreement, award or employment contract. It is the informality, uncertainty and irregularity of the engagement that gives it the characteristic of being casual.
What entitlements do casuals get?
Under the Fair Work Act, casual employees are provided with a range of entitlements including:
Casual employees can claim unfair dismissal once they have served the minimum employment period of 6 months, unless engaged by a small business with fewer than 15 employees in which case the minimum employment period is 12 months.
Avoid the relationship being “regular or systematic”
You might hear the words not regular or systematic when you’re looking at employing casuals. This is not defined by the Fair Work Act, but courts have tended to give this term a broad meaning.
Employers can minimise the risk by taking the following steps:
Employers must take extra care when engaging employees on a casual basis, ensuring the employment relationship does not transform into a permanent role. When considering hiring employees or thinking about employment status it’s important to think about:
If the is answer yes, you may need to consider their employment status and your employment obligations.
Full-time, part-time and casual what’s the difference?
Full-time:
Part-time:
Casual:
Cornerstone Consulting can help determine your obligations when it comes to employing people. We can advise on the correct entitlements for any employees, provide compliant employment contracts and assist if you find yourself in any type of employment dispute.
We offer a free consultation for all new clients. Give us a call to find out more.