What you need to know about casual employment

Employing individuals on a casual basis offers may offer many benefits to your organisation, however, it is important that you understand the intricacies of casual employment, prior to hiring an employee in this capacity. Continue reading this Legal Kitz blog to learn more about casual employment.

Who is a casual employee?

A casual employee is someone who accepts a job offer from an employer knowing that there will be no firm advance commitment apart from the agreed pattern of work. For example, a casual employee could refuse or swap their shifts based on their changing rosters set by their employer’s needs.

Under the Fair Work Act, a person is specifically a casual employee if:

  • They are offered a job;
  • The offer does not include a firm advance commitment that the work will continue indefinitely with an agreed pattern of work; and
  • They accept the offer knowing that there is no firm advance commitment where they can become an employee. 

The term “No firm advance commitment” in an offer depends on four factors, which are:

  • If the employment is described as casual;
  • Whether the employer can choose to offer the employee work (and the employee can choose to work or not);
  • Whether the employee will be offered work as per the business’s needs; and
  • If the employee is paid a casual loading or a specific pay rate for casual employees. 

Casual employees are also entitled to:

  • An access pathway to becoming a permanent employee;
  • 2 days unpaid carer’s leave and 2 days unpaid compassionate leave per occasion;
  • 5 days unpaid family and domestic violence leave (in a 12 month period); and
  • Unpaid community service leave.

Casual employees can also request for flexible working arrangements and take unpaid parental leave if: 

  • They have been employed as a casual employee on a regular and systematic basis over at least 12 months by their employer; or
  • They reasonably expect to continue working for the same employer on a regular and systematic basis.

When does the employment stop being casual?

Casual employees are employed on a casual basis until they either;

  • Stop working for the employer; or 
  • Become a permanent employee through a casual conversion or when offered and accepting an offer for a full-time or part-time employment. 

What is the difference between casual, part-time and full-time?

Unlike casual employees, part-time and full-time employees have an advance commitment to ongoing employment. They are expected to work regular hours each week, are also entitled to paid leave, and must give or receive notices to end their employment. Additionally, full-time employees work longer hours – on average, 38 hours per week, and are usually employed on a permanent basis or on a fixed term contract. Part-time workers too are usually employed on a permanent basis or on a fixed term contract, but work regular hours each week (less than 38 hours). 

How do I change from casual to full/part-time employment?

At any point of time, a casual employee can change to part-time or full-time employment if both parties agree. As mentioned above, casual employees do have a right to access a pathway to become a permanent full-time or part-time employee. This is also known as ‘casual conversion’.  

The Fair Work Commission has reviewed award clauses about casual conversion to ensure that they are consistent with National Employment Standards (NES), and can assist with varying conversion clauses in agreements. More information on this can be found here.

Do you have a workplace problem?

If you have a workplace problem, The Fair Work Ombudsman has tools and information to help you resolve it. You can check out their Fixing a workplace problem section for information relating to:

  • Working out a problem;
  • Speaking with your employer / employee about the problem; or 
  • Getting help by contacting Fair Work if you cannot fix the problem.

Legal advice

If you require any assistance regarding employment law, please do not hesitate to contact Legal Kitz. You can contact us by phone on 1300 988 954 or email [email protected]. We offer a FREE 30-minute consultation for all your legal needs.