If you are an employer seeking to hire part-time employees, it’s important to understand the legal and practical considerations involved in creating employment contracts. Continue reading this Legal Kitz blog to learn more about the rights and responsibilities of both employers and employees in this type of working arrangement.
What are part-time employment contracts?
Part-time employment contracts are agreements between an employer and an employee in which the employee works fewer hours per week than a full-time employee. The terms and conditions of the contract are typically outlined in writing and will include details such as the number of hours worked per week, the rate of pay, and any benefits or entitlements that the employee is entitled to.
How is part-time different from full-time or casual employment?
Part-time workers, full-time workers, and casual workers differ in terms of their working hours, employment status, and entitlements.
Part-time workers typically work fewer hours than full-time workers, often on a regular schedule, and have a set number of hours per week. They may receive some benefits and entitlements, such as paid leave, on a pro-rata basis, according to the number of hours they work.
Full-time workers, on the other hand, work standard or agreed-upon hours per week, which is usually around 38-40 hours. They usually receive full benefits and entitlements and are entitled to certain rights, such as job security, under employment laws.
Casual workers are hired on an as-needed basis, and their hours can vary significantly from week to week. They do not have set hours or a regular schedule and are not entitled to the same benefits and entitlements as full-time or part-time employees, such as paid leave or sick pay. However, casual workers generally receive a higher hourly rate of pay to compensate for their lack of benefits and job security.
For information about changing to part-time employment through the Fair Work Ombudsman (FWO) website, to find employee pay rates go to the Pay and Wages page on the FWO website.
Advantages of part-time work?
Part-time employment contracts are suitable for individuals who cannot work full-time due to other commitments including family responsibilities or studying. Part-time employees may have a more flexible work schedule and are still protected by employment laws and may be entitled to certain benefits. These benefits include sick pay, holiday pay, and pension contributions.
Other advantages include:
- Reduced stress: Part-time work can result in reduced stress levels, as employees have more time to take care of their personal and family responsibilities – leading to improved mental and physical health.
- Learning opportunities: Part-time work can provide opportunities for learning new skills and gaining experience in a particular field. This can help employees develop professionally and improve their chances of career advancement.
For employers, part-time work may be beneficial as it can be a cost-effective way to staff their business. It allows them to manage their payroll costs and benefits expenses while still having enough staff to meet their business needs.
What benefits are part-time workers entitled to?
Part-time workers are entitled to certain benefits and entitlements, which are usually calculated on a pro-rata basis, depending on the number of hours they work. Here are some benefits that part-time workers may receive:
- Paid annual leave: Part-time workers are entitled to paid annual leave, which is calculated on a pro-rata basis according to the number of hours they work.
- Paid sick leave: Part-time workers are entitled to paid sick leave, which is also calculated on a pro-rata basis. The number of sick leave days that a part-time worker can take is usually proportional to the number of hours they work.
- Superannuation: Part-time workers may be entitled to superannuation contributions from their employer, which is usually a percentage of their earnings. The amount of superannuation paid to part-time workers is also calculated on a pro-rata basis.
- Training and development opportunities: Part-time workers may have access to training and development opportunities, which can help them improve their skills and advance their careers.
- Employee discounts and benefits: Part-time workers may be entitled to employee discounts or other benefits, such as access to company facilities or products, as part of their employment.
It is important to note that the specific benefits that part-time workers are entitled to may vary depending on the industry, company, and location.
For information regarding leave entitlements, go to the Leave page on the FWO website
What laws govern part-time employment?
Part-time employment in Australia is governed by a number of laws and regulations. Some of the key laws that apply to part-time employment in Australia include:
- Fair Work Act 2009: This is the primary legislation governing employment relations in Australia. It outlines the rights and entitlements of all employees, including part-time workers.
- National Employment Standards (NES): These are minimum employment standards that apply to all employees in Australia. The NES include entitlements such as annual leave, sick leave, and public holidays, which apply to part-time workers on a pro-rata basis.
- Modern Awards: These are industry or occupation-specific awards that set out minimum pay rates and employment conditions for employees. Many modern awards contain provisions that apply specifically to part-time workers, such as minimum hours of work and notice periods.
- Enterprise agreements: These are agreements between an employer and employees, which set out pay rates, employment conditions, and other entitlements. Enterprise agreements can be tailored to the specific needs of the business and can include provisions for part-time workers.
- Work Health and Safety (WHS) laws: These laws outline the obligations of employers to provide a safe work environment for all employees, including part-time workers.
A registered agreement can also provide for other entitlements as long as they are not less than what is outlined in the NES. If an award covers an employee, entitlements in a registered agreement can not be less than the overall award.
You can find out which award covers you through the Awards tab on the FWO website.
In addition to these laws, there may be other laws and regulations that apply to part-time employment in specific industries or locations. It is important for both employers and employees to be aware of their rights and obligations under the relevant laws and regulations.
Legal Advice
Understanding the rights and obligations of part-time employment is essential for ensuring compliance with the law, promoting fair treatment of workers, increasing employee retention and productivity, and enhancing the reputation of the employer. Legal assistance may be necessary when a part-time employee’s rights are being infringed, or when there is a dispute or conflict that cannot be resolved through negotiation or mediation.
It is important to seek legal advice from a qualified professional who has experience in employment law and can provide tailored advice based on the specific circumstances of the situation.
If you need assistance with part-time employment contracts 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.