Understanding the differences between casual, part-time, and fixed-term employment is crucial, as mixing them up can lead to costly mistakes.
Casual Employees
Casual employees have no guaranteed hours or regular work pattern, so there's no ongoing expectation of employment. Each time they accept work, it's considered a new period of employment. Despite the irregular hours, employment rights and responsibilities still apply. They receive an extra 8% holiday pay on top of their wages instead of accruing annual leave. After 6 months, if they meet certain criteria, they are also entitled to sick and bereavement leave.
Permanent Part-Time Employees
Permanent part-time employees typically work less than 30 hours a week with a consistent, regular work schedule. They accrue annual leave and are entitled to 4 weeks of leave after 12 months of continuous employment, plus 10 days of sick leave after 6 months.
Fixed-Term Employees
Fixed-term employees can be full or part-time, with employment ending on a specified date. This type of employment is common for covering someone on parental leave, seasonal work, or special projects. There must be a genuine reason for the fixed term, which must be disclosed to the employee. They have the same rights and responsibilities as permanent employees, but their annual holiday entitlement may be handled differently due to the fixed end date.
No matter the employment type, all employees must have a signed employment agreement outlining the terms of their employment.
If you're unsure which employment type is right for your situation or need help updating your employment contracts, get in touch with our team. We're here to help!
