What Are The Differences Between Casual And Part-Time Employees?

As a small business owner, it is important you understand the differences between employee status. We often hear from employers who are confused about the differences between casual and part-time employees.

Casual and part-time employees differ in a range of areas including work hours, leave, pay, public holiday payments and notice periods.

When hiring an employee it is important you understand what employee status is best for the role you want them to play in your business.

Let us break down the differences for you!

Part-Time Employees

A part-time employee is usually regarded as a permanent employee or on a fixed term contract. The same benefits generally apply to both full-time and part-time employees, with certain entitlements on a pro rata basis for part-time employees.

Part-time workers typically work less than 35 hours per week, have regular and predictable working hours and are entitled to paid leave and selection for redundancy.

Part-time work is generally regarded to be pretty stable, clearly defined and encompasses the benefits of paid leave such as sick leave, annual leave and carers leave.

Notice periods for part-time workers are usually set out in a modern award or in their Employment Agreement.

If an employer wishes to terminate a part-time employee’s employment, the employee is usually entitled to written notice or payment instead of notice.

Casual Workers

When thinking of what it means to be a casual employee, think: ad hoc work with irregular and unpredictable hours.

Casual workers generally have no firm commitment to their employer and are not obliged to commit to all work proposed by their employer.

Casual employment roles can incorporate irregular hours and are not guaranteed to be ongoing.

If a casual worker wishes to end their employment, they can usually do this without notice. This is unless notice is required by a registered agreement, award or employment contract.

What Are Casual Workers Entitled To?

As we know, part-time workers are considered employees. However, under employment law, there is a distinction between workers and employees, and their entitlements depend on this employment status.

Generally, workers are entitled to:

• National minimum wage
• Protection against workplace discrimination
• Statutory minimum level of paid holiday
• Statutory minimum length of rest breaks

They may also be entitled to:

• Sick pay
• Maternity pay
• Holiday pay
• Paternity pay
• Adoption pay
• Parental pay

However, workers are generally not entitled to:

• Minimum notice periods if their employment is ending
• Protection against unfair dismissal
• Right to request flexible working arrangements
• Redundancy pay

Casual workers are considered ‘workers’ under employment law, so the above entitlements should apply.

So, What Are The Differences Between Casual And Part-Time Employees?

Let’s break the key differences between casual and part-time employees. 

1. Work Hours 

Part-Time Employees	Casual  Workers
Have guaranteed hours of work  On average, work less than 35 hours per week	No guaranteed work hours, or work hours are generally irregular and unpredictable

2. Leave

Part-Time Employees	Casual Workers
Entitled to paid leave entitlements include annual leave, sick leave and carers leave	Only sick pay, maternity pay, paternity pay, adoption pay, holiday pay and parental pay at the employer’s discretion

3. Pay 

Part-Time Employees	Casual Employees
Usually pay is based on an annual salary as outlined by their Employment Agreement	Usually pay is based on an hourly ‘Rate of Pay’

4. Public Holiday Payments
   

Part-Time Employees	Casual Workers
Must be paid public holiday payments if their usual working day falls on the public holiday If the public holiday falls on a day that the employee does not usually work, they are not entitled to public holiday pay	No public holiday payments

5. Notice Period 

Part-Time Employees	Casual Workers
Notice period is typically set out in a modern award or employee agreement Entitled to written notice or payment if their employer wishes to terminate their employment	No notice period is required This is unless a notice period is set out in an employee agreement or award

Conclusion

Knowing the differences between casual employees and part-time employees can help you optimise the functioning of your business. 

But determining the status of an employee can sometimes be tricky. 

It is important that you understand the role you want your employee to play in your business and what employee status coincides with that role. 

We’re here to help! Reach out to our team for a free, no-obligations chat at [email protected] or 08081347754.

---