There are some differences between a casual and a permanent employee and sometimes it can be confusing for a business owner to work out which type of employment will work best for their situation. There are differences between casual and permanent employment and it’s good to consider which type of employment will work best for you business.
If you are not sure how many days or hours you need an employee to work, employing a casual makes sense.
One of the major differences between a permanent and a casual employee is the continuing expectation of work.
A casual employee has no guaranteed hours of work, usually works irregular hours with no expectation of continuing work, doesn’t get paid personal carer’s or annual leave & can end employment without notice. They can also make themselves unavailable at short notice. A casual employee receives a 25% casual loading on top of the base hourly rate of pay. This loading is compensation for not receiving things like annual leave or personal carer’s leave.
A casual employee can apply to change to full-time or part-time employment.
There are requirements for businesses to offer permanent employment to a casual employee that has worked regular hours for 12 months. These requirements are different for a small business with less than 15 employees.
Casuals are entitled to overtime if they work over a certain amount of hours.
Casuals are entitled to be paid penalty rates for weekend, evening and night work.
Casuals are usually entitled to get the same rest breaks as full-time employees, including at least one 30 minute break for every five hours they work.
Casual employees may have rights in relation to unfair dismissal if they have had a regular pattern of employment for more than 6 months (or 12 months for a small business)
Full time or part time employees
A permanent full time or part time employee has ongoing employment and they work set hours and days each week, this should be agreed before the employee starts and should be in writing, for example in an employment contract. They are entitled to paid annual leave and personal carer’s leave and other forms of paid leave. Part time employees accrue leave on a pro rata basis in accordance with the hours they work per week and they are entitled to be paid for a Public Holiday if it falls on a day they would normally work. Permanent full time and part time employees must give (or receive) notice to end employment.
A full time employee works 38 hours per week and a part time employee works less than 38 hours per week. Full time and part time employees are permanent employees and have an expectation of ongoing employment, or may be employed on a fixed term contract.
If you need more information about the differences between permanent and casual employment or need to work out what will work best for your business, you can book in for a 10 minute free introductory call: https://booking.myhrpartner.com.au/10minintrocall
For further expert advice on human resources or if you have any questions about anything HR related, get in touch.
Karen Hillen is your HR Partner, she helps businesses by providing HR support and advice services.
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