What is a Casual Employment Contract?
A Casual Employment Contract is a contract which is used to document your employment arrangement with a casual employee.
It covers all of the important terms of employment, including start date, position and duties, hours of work and rate of pay.
Who can use this template?
- Businesses looking to hire casual staff
- You want proper legal protection
- You want to appear professional to your employees
- You want to avoid misunderstandings and clearly outline the terms of employment
What does a Casual Employment Contract include?
Our Casual Employment Contract template covers all of the important terms you need:
- Position – details of the position, including start date, location, manager and duties
- Probation – optional clause, allows you to have a trial period to assess performance and suitability for the position
- Hours of work – no guarantee of ongoing work, details of how shifts will be determined etc
- Breaks – entitlement to paid or unpaid rest breaks and meal breaks, depending on length of the shift
- Remuneration – hourly rate, superannuation, casual loading
- Leave – statutory entitlements to unpaid leave
- Your Obligations – employee obligations to the business, including duties, conduct and standards
- Termination – how either party can terminate the employment agreement
- Confidential Information – to protect your confidential information
- Intellectual Property – to protect your intellectual property
- Personal Information – consent to collect personal information for payroll and HR purposes
- Surveillance – consent to monitor use of IT systems etc
- Restraint – to prevent an employee from intefering or disrupting relationship with customers, suppliers, employees and contractors
What is a casual employee?
A casual employee does not have any set hours or guarantee of ongoing work.
Their roster can change each week and they do not receive the same entitlements as part-time or full-time employees, such as sick leave or annual leave. As a casual employee, your employment can end without notice, unless notice is required by a registered agreement, award or employment contract.
What’s the difference between casual and part time?
The main difference between casual and part-time is that a part-time employee has an expectation of ongoing work.
By contrast, a casual has no guaranteed hours of work or expectation of ongoing work in the future. Casual employees provide businesses with a great deal of flexibility as casuals can be hired as needed. Casual employees are not entitled to the same benefits as a part-time employee and do not receive entitlements such as annual leave, sick leave, notice upon termination and redundancy pay.
Casual employees are paid a higher hourly pay rate than equivalent full-time or part-time employees. This is called a ‘casual loading’ and is paid because they don’t get benefits such as sick or annual leave.
What are long term casual employees?
Some casual employees work regular hours or the same days each week for a long period and become ‘long term casuals’.
Long term casuals stay as casual employees unless they formally change to full-time or part-time employment. They don’t automatically become permanent employees, even if they are called ‘permanent casual’. They get their casual entitlements regardless of how regularly they work or how long they work for.
After 12 months of regular employment, and if it’s likely the regular employment will continue, a casual employee can:
request flexible working arrangements
take parental leave.
They don’t get paid leave or notice of termination, even if they work regularly for a long time.
Changing to full-time or part-time employment
A casual employee can change to full-time or part-time employment at any time if the employer and employee both agree to it.
Most awards have a minimum process for changing casual employees to full-time or part-time. Some enterprise agreements and other registered agreements have a similar process.
Do I need a Casual Employment Contract?
Yes, absolutely! A Casual Employment Contract protects both you and your employees.
You should always have a contract signed before a new employee starts working for you.
An employment contract will help to set the ground rules in black and white so everyone is clear on their obligations from the start. You need a proper written contract to enforce your rights and make sure your business is legally protected in case something goes wrong.
We recommend that you consult the Fair Work website to check any Awards and agreements which may apply before you use this template.
As an employer, it is your responsibility to pay at least the minimum wage and entitlements to your employees under the applicable modern award or enterprise agreement.
You must also provide all new employees with a copy of the Fair Work Information Statement by law.
You can view a handy guide to hiring new employees HERE
Is my employee covered by an Award?
Awards apply to employers and employees depending on the industry they work in and the type of job worked. Every award has information about who it covers in the coverage clause (usually clause 4) and the job classifications (usually in the pay clause or a schedule).
There are more than 100 industry or occupation awards that cover most people who work in Australia. An employer can be covered by more than one award depending on the jobs the employees do.
You can use the Find My Award tool to check for award coverage on the Fair Work website. In some cases there may not be an award that covers your industry/job role (this is known as “award-free”).
If you are unsure about the status of an employee, you should seek legal advice.
Is this Casual Employment Contract template legally binding?
All of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.
We are affiliated with a commercial law firm based in Sydney.