Temporary and flexible job positions, known as casual work, involve working with a company for a specific project without any fixed requirements. Such positions can be referred to as contract work, temporary work, or flexible work interchangeably. Unlike traditional full-time employment, casual employment offers no fixed working hours or regular pay periods. Continue reading this Legal Kitz blog to learn more about casual employment and overtime pay.
What is a casual employee?
In Australia, casual workers are a significant part of the workforce, and their employment is governed by specific laws and regulations. One of the questions that arise is whether casual workers are entitled to overtime pay. The answer to this question is not straightforward, and it depends on various factors, such as the industry, the type of work, and the employment agreement.
Specifically, under the Fair Work Act, a person is a casual employee if:
- they are offered a job;
- the offer does not include a firm advance commitment that the work will continue indefinitely; and
- they accept the offer knowing that there is no firm advance commitment.
How is casual different to full-time or part-time employment?
Employees who work full-time or part-time have a pre-arranged agreement for ongoing employment, and can generally anticipate working regular hours each week. Such employees are also entitled to paid leave and are required to give or receive notice in order to terminate their employment. In contrast, casual employees may work different hours each week depending on the employer’s needs. Casual employees are also entitled to paid leave or must give or receive notice to end employment.
For more information about the different types of employment, including hours and entitlements, go to the Fair Work website:
When does an employee stop being a casual?
Pursuant to the Fair Work Ombudsman, once someone is employed on a casual basis, they continue to be a casual employee until they either:
- become a permanent employee through:
- casual conversion, or
- being offered;
- and accepting an offer of full-time or part-time employment, or
- stop being employed by the employer.
Employers need to provide their casual employees with the Casual Employment Information Statement.
Overtime pay and casual employment
Firstly, it is important to note that casual workers in Australia are not entitled to the same benefits as permanent employees. Casual workers are employed on a casual basis, which means they do not have a guaranteed number of hours, sick leave, or annual leave. However, they are entitled to a higher hourly rate of pay to compensate for these entitlements.
Regarding overtime pay, casual workers in Australia are generally entitled to overtime pay at a higher rate than their regular pay. According to the Fair Work Ombudsman, casual workers are entitled to overtime pay when they work more than their ordinary hours, which is typically 38 hours per week.
The overtime rate for casual workers is usually higher than the standard rate of pay. The Fair Work Act 2009 specifies that casual employees must receive a loading on their ordinary hourly rate of pay to compensate for not receiving entitlements such as sick leave or annual leave. The loading is usually 25%, which means that if a casual worker’s hourly rate of pay is $20, they will receive $25 per hour for any overtime worked.
It is worth noting that some industries have different rules regarding overtime pay for casual workers. For example, the Hospitality Industry (General) Award 2020 specifies that casual workers are entitled to overtime pay at a higher rate after working 10 hours in a day or 38 hours in a week. Additionally, the Building and Construction General On-site Award 2020 specifies that casual workers are entitled to overtime pay after working eight hours in a day or 38 hours in a week.
Understanding your rights
As a casual employee in Australia, you have rights under the Fair Work Act 2009, which sets out the minimum entitlements and conditions of employment for all workers, including casuals.
To find out your casual employee rights, you can start by visiting the Fair Work Ombudsman’s website (www.fairwork.gov.au) and looking for information on the rights and entitlements of casual workers. The website provides detailed information on minimum pay rates, overtime, leave entitlements, and other conditions of employment.
You can also check your employment contract or agreement, which should outline your rights and entitlements as a casual employee. If you have any questions or concerns about your rights or entitlements, you can discuss them with your employer or contact the Fair Work Ombudsman for advice and assistance.
It’s important to know your rights as a casual employee, as this will help you ensure that you are being paid and treated fairly in the workplace. By understanding your rights and entitlements, you can also make informed decisions about your employment and negotiate better working conditions with your employer if necessary.
Legal advice
Overall, casual workers in Australia are entitled to overtime pay, which is usually at a higher rate than their regular pay. However, the specific rules and entitlements vary depending on the industry, the type of work, and the employment agreement. It is important for both employers and employees to understand their rights and obligations regarding overtime pay to ensure that they comply with the relevant laws and regulations.
If you need further assistance or advice regarding your casual employee rights, or matters alike, we here at Legal Kitz would love to help you. We offer free resources and the option to request a free 30-minute consultation for all of your employment queries. Additionally, our sister company Business Kitz offers a subscription-based plan with over 150+ legally compliant documents, for any employers wondering what their causal employee’s rights are.