What is casual employment? A guide to work hours and entitlements

Australia has no federally mandated minimum number of hours for casual employees per shift. The minimum hours can vary depending on applicable industry awards or agreements between the employer and the employee, but they cannot be less than what’s outlined in the award.

In general, practice, even if you roster a casual employee for a short shift (e.g., 2 hours), you might be obligated to pay them for a minimum number of hours as defined by the award or the agreement. This is to compensate for travel time and other considerations.

No, casual employees typically don’t qualify for overtime pay simply for working more than 38 hours per week unless specified by a relevant industry award. Casual employment is specifically designed for irregular hours and doesn’t guarantee a set number of hours per week.

Some awards or registered agreements that govern specific industries might have clauses outlining overtime pay for casual employees who work beyond a certain number of hours per day, week, or fortnight.  Check the relevant award for any such provisions.

If a casual employee works significantly more than what’s considered “reasonable” for their casual role, they might be entitled to overtime pay under the “reasonable work hours” clause of the Fair Work Act. This is a complex area and may involve individual circumstances.

There’s no strict legal time limit on how long someone can be classified as a casual employee. Under certain circumstances, a casual employee may be eligible for “casual conversion” to a permanent role. This happens if their work arrangement starts to resemble a permanent role, even though they’re technically classified as casual.

Different factors may trigger casual conversion, but it is wholly at the discretion of the employer.

The rules around superannuation (super) for casual employees can be a bit complex. Generally, casual employees are only entitled to superannuation if they are under 18 and work more than 30 hours per week for their employer. In this case, they would be entitled to super on all their earnings.

There is no current minimum earning threshold for casual employees over 18 to be eligible for super. This means casual employees over 18 generally don’t qualify for super, regardless of the number of hours worked.

Yes, casual employees generally do get penalty rates for working certain hours or days. This is because casual loading, which they receive in lieu of paid leave entitlements, doesn’t account for potential overtime or irregular work hours. Many awards or agreements also provide penalty rates for casual employees who work outside their normal spread of hours, including evenings (typically after 6 pm on weekdays) and nights.

Casuals are entitled to a higher hourly rate for ordinary hours worked on weekends and public holidays compared to the standard hourly rate. The specific percentage increase can vary depending on the relevant award or registered agreement that applies to the industry or occupation.

No, casual employees are not entitled to receive allowances in the same way that full-time or part-time employees might. Allowances typically cover specific work-related expenses like travel, meals, uniforms, or tools. Since casual work is often temporary or short-term, there’s less need for ongoing expense reimbursements. Still, an employer may offer casual employees certain allowances at their discretion.

Some awards or registered agreements governing specific industries might have clauses outlining specific allowances for casual employees. These could be for meals or travel expenses incurred due to the nature of the work. It’s crucial to check the relevant award for any such provisions.

Yes, casual employees have the right to refuse shifts without facing any consequences from their employers as long as they provide reasonable notice (depending on the circumstances). Unlike full-time or part-time employees, casuals don’t have a guaranteed number of hours or a set work schedule, so the employer can’t penalise them for refusing a shift.

While casual employees can refuse shifts, consistently refusing all or most offered shifts could jeopardise their casual employment status. If an employer can demonstrate a pattern of unreasonable refusals, it might impact the casual classification.

Yes, casual employees can generally be terminated without notice from their employer, and vice versa. This aligns with the casual employment model’s core principle of flexibility and irregular work patterns.

The casual classification hinges on the absence of both parties’ advance commitment. Employers don’t commit to providing ongoing work, and casual employees don’t commit to accepting every offered shift.

Casual employees can still be protected from unfair dismissal under certain circumstances. This might occur if the termination is discriminatory or in retaliation for exercising workplace rights.

Casual employees and contractual employees in Australia represent two distinct types of work arrangements. While both offer flexibility compared to full-time or part-time roles, they differ significantly in terms of structure, entitlements, and expectations.

In essence, casual employment is suited for ongoing but irregular work needs, while contractual employment is ideal for well-defined projects with a clear start and end date. For more information, see our article on contractor vs. employee differences.