Is there a difference between part-time and casual employment agreements?

Having appropriate employment agreements in place is vital to ensure that your business understands employee entitlements and is compliant with the Fair Work Act 2009 (Cth).

For example, casual employees and part-time employees are prescribed very different entitlements under the Fair Work Act 2009 (Cth) and National Employment Standards and having the appropriate employment agreements in place will help protect your business against potential employee claims. 

What is a casual employee? 

A casual employee is engaged on a casual basis and has no expectation of ongoing work and no guaranteed hours of work.  

Casual employees are entitled to a higher pay rate (per hour) than part-time employees as casual employees do not receive any paid leave (excepting long term casual employees). 

What is a permanent part-time employee? 

In contrast, a permanent part-time employee usually works regular and guaranteed hours each week and is entitled to paid leave and other inclusions.

What are the key differences between a casual employment agreement and a part-time permanent employment agreement?  

The key differences between a casual employment agreement and a part-time permanent employment agreement are (including but not limited to): 

  1. Leave provisions
    • part-time employment agreements include entitlements regarding paid leave (such as annual leave, sick leave, carer’s leave and parental leave) while casual employment agreements do not. 
  2. Notice of termination provisions
    • Casual employees may be terminated without notice, whilst part-time employees are usually entitled to notice of termination.
  3. Probation provision
    • A part-time permanent employment agreement may include a provision where the employee is subject to a probationary period where the employer may terminate the employee with or without cause. This does not apply to casual employees. 

Next Steps

Our trusted partner Business Kitz Pty Ltd provides comprehensive Casual, Part-Time and Full-Time Employment Agreement Templates available for purchase that include all relevant provisions to ensure that your business is compliant with the Fair Work Act 2009 (Cth). 

Legal advice

If you are unsure whether you should engage an employee on a casual or part-time basis you should seek legal advice. Click here to book a FREE consultation with one of our highly experienced solicitors today or contact us at info@legalkitz.com.au or by calling 1300 988 954. 

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