If you’re a casual employee whose contract is coming to an end, it’s important to understand your rights and options. Continue reading this Legal Kitz blog to learn more about ending casual employment!
What is casual employment?
A casual employee is a type of employee who is employed on an irregular or occasional basis, often with no guaranteed hours of work. Casual employees are typically hired to fill short-term or temporary positions or to cover unexpected absences or spikes in demand.
Casual employees are usually paid by the hour, and their employment can be terminated at any time without notice or reason. They are often not entitled to benefits such as sick leave or paid vacation, although they may receive a higher hourly wage to compensate for this.
Casual employment is common in industries such as hospitality, retail, and healthcare, where demand for staff may fluctuate depending on factors such as seasonal changes or unexpected events. While casual employment can offer flexibility for both employers and employees, it can also result in insecurity and financial instability for workers.
Difference between casual, full-time, and part-time
Casual employment:
- Irregular hours
- No guaranteed hours of work
- Typically short-term or temporary positions
- Higher hourly wage but no benefits
- Offers flexibility for both employers and employees
Full-time employment:
- Regular, ongoing work for a set number of hours per week (typically 38-40)
- Entitled to benefits such as sick leave, vacation pay, and health insurance
- Provides job security and stable income
- May offer opportunities for career advancement and professional development
Part-time employment:
- Regular work for fewer hours per week than full-time employment
- Entitled to some benefits on a pro-rata basis
- Offers flexibility but may not provide the same level of job security and stability as full-time employment
Casual employee rights and benefits
Casual workers are entitled to certain rights and benefits, including:
- Minimum wage: Casual workers are entitled to be paid at least the minimum wage that applies to their industry or occupation.
- Superannuation: Casual workers are entitled to employer contributions to their superannuation fund if they earn more than $450 per month.
- Safe working conditions: Employers have a duty to provide a safe and healthy work environment for all employees, including casual workers.
- Workers’ compensation: Casual workers are entitled to workers’ compensation if they are injured at work.
- Protection against discrimination: Casual workers are protected by anti-discrimination laws and have the right to work in an environment free from discrimination and harassment.
- Right to join a union: Casual workers have the right to join a union and be represented by a union in workplace negotiations.
- Flexible working arrangements: Casual workers have the right to request flexible working arrangements, such as part-time work or flexible hours.
- Unpaid Parental Leave: If employees have been employed by their employer as casual employees on a regular and systematic basis over at least 12 months, they are able to take unpaid parental leave.
However, casual workers are generally not entitled to benefits such as sick leave, annual leave, or long service leave. They may receive a loading on their hourly rate to compensate for this lack of entitlements.
For more benefits, you can find information through the National Employment Standards (NES) or the Fair Work Ombudsman (FWO) website.
Changing from casual to part-time or full-time
A casual employee can change to full-time or part-time employment at any time if the employer and employee both agree to it.
The National Employment Standards (NES) provide casual employees with the opportunity to convert to permanent full-time or part-time employment in certain circumstances, which is referred to as ‘casual conversion’. To learn more about this process, please refer to the ‘Becoming a permanent employee’ section.
Many awards include a procedure for converting casual employment into permanent employment. Some registered agreements may also have similar provisions. The Fair Work Commission has examined these provisions to ensure compliance with the National Employment Standards (NES) and can provide guidance on modifying them in agreements.
You can visit the Fair Work Commission website for additional information.
Advantages of ending casual employment
Employee Advantages
One of the most significant benefits of ending casual employment is the increased job security for workers. Casual employees often have little to no job security and may be terminated without notice or cause. This can be particularly challenging for workers who rely on their income to support themselves and their families. Ending casual employment would ensure that employees have a stable source of income and protection against unfair dismissal.
In addition to job security, ending casual employment could also result in better pay and benefits for workers. Casual employees are often paid hourly or on a short-term basis, which can lead to unstable and unreliable incomes. By transitioning to full-time, permanent employment, employees would be entitled to benefits such as sick leave, annual leave, and superannuation, providing a safety net that ensures workers can support themselves in times of illness or injury.
Employer Advantages
Moreover, employers may benefit from ending casual employment as well. Transitioning to permanent employment can lead to a more committed and loyal workforce, which can boost productivity and reduce staff turnover rates. Permanent employees are more likely to have a sense of job security and belonging, which can lead to increased job satisfaction and engagement.
While there may be challenges in transitioning from casual to permanent employment, there are several steps that employers can take to make the process smoother. One potential solution is to provide training and development opportunities for casual employees, enabling them to up-skill and transition into permanent roles within the company. This can help to create a more diverse and skilled workforce and build stronger relationships between employees and employers.
Disadvantages of ending casual employment
Ending casual employment may have some disadvantages for both employers and employees. One potential disadvantage is that it may limit the flexibility of employers to respond to changes in demand or unexpected absences. Employers may be reluctant to hire permanent employees if they are unsure of the long-term need for staff, or if they anticipate fluctuations in demand that would require adjustments to staffing levels.
Another potential disadvantage is that transitioning to permanent employment may be more expensive for employers. Permanent employees are entitled to benefits such as sick leave, vacation pay, and health insurance, which can increase labor costs for employers. This may be particularly challenging for small businesses or those operating on tight margins.
Additionally, some casual employees may prefer the flexibility and independence that comes with casual employment. They may prefer the ability to pick and choose when they work, and the freedom to take on multiple jobs or pursue other interests outside of work. Ending casual employment may limit these options and make it harder for some workers to balance their work and personal commitments.
Can employers unfairly end casual employment?
In most cases, employers can end casual employment without notice or reason, as casual employment is often not guaranteed and is based on the employer’s needs. However, if the employer terminates a casual worker for an unfair reason, such as discrimination or retaliation for whistleblowing, the worker may have grounds for an unfair dismissal claim.
Legal Advice
Casual workers may seek legal help if they feel they are being treated unfairly, have a dispute with their employer, are unsure about the terms of their contract, or are not receiving their entitlements. Legal help can provide guidance on their rights and options.
If you need assistance with casual employment or any other employment-related matter, you can always contact Legal Kitz to assist you. To arrange a FREE 30-minute consultation with one of our highly experienced solicitors, contact us at [email protected] or 1300 988 954. Additionally, you can also check out our sister company –Business Kitz’s Subscriptions, to access our full range of legal, commercial, and employment document templates to begin your business with a solid foundation that ensures compliance.