What is a casual employee?

Table of Contents

Share at:

Running a small business and thinking about hiring a few extra casual employees to help you carry out some tasks? Look no further – here is our guide on what you should know about offering casual employment to prospective employees.

If you require further legal assistance, LawPath recommends contacting an employment lawyer for advice on how you can manage casual employment.

What is a casual employee?

Casual employment is undefined under the Fair Work Act 2009 (Cth), but the Fair Work Ombudsman have defined it as a situation where an employee only works on demand by the employer. A casual employee generally has no guaranteed hours of work, and works irregular hours. There is no certainty of ongoing work as a casual employee.

This is different to full-time and part-time employment, in which they have ongoing employment and can work regular hours every week.

What do casual employees get?

The National Employment Standards (NES) sets out the minimum standards to apply to the employment of employees. Under this, casual employees only get NES entitlements relating to:

  • Unpaid carer’s leave (2 days);
  • Unpaid compassionate leave (2 days);
  • Unpaid community service leave; and
  • The Fair Work Information Statement.

In addition, casual employees are entitled to a higher hourly pay rate compared to equivalent full-time or part-time employees called a ‘casual loading’, which is generally 15 – 25% of the hourly rate in addition to the hourly rate. This loading is designed to compensate the employee for lack of annual leave, public holidays, and other such benefits enjoyed by full-time and part-time employees.

There are additional entitlements from the NES that apply to casual employees who have been employed for 12 months. If it is likely that the employee will continue to be employed as a casual, they have the option to request for flexible working arrangements and to take parental leave.

How are casual employees dismissed?

Casual employment can be ended without notice, unless the notice is required by a registered agreement, award, or employment contract.

However if the employee is employed on a regular and systematic basis, they are entitled to make an application for unfair dismissal under the Fair Work Act 2009 (Cth).

Conclusion

For small businesses, deciding whether or not to hire someone under a casual employment agreement or a part-time/full-time agreement can be quite tricky, depending on the business’s needs. If you would like a casual employment agreement for your business, LawPath can assist you with our Casual Employment Agreement. If you would like an existing agreement reviewed or more information on casual employment, LawPath recommends getting in touch with an employment lawyer.

Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Is it Legal for Employees to Work During their Lunch Break?

It's common that an employee will want to work through their lunch break to maximise workflow or to meet a deadline. Read on to find out more.

How to Write a Receipt?

Learn how to write a legally compliant receipt to provide proof of transaction for your customers.

How to Set Up a Holding Company in Australia?

It is important to understand how to set up a holding company if you want to diversify your business across different companies. Read more here.

Using An IP Agreement To Protect Your Business (2026 Update)

An IP Agreement assigns intellectual property from one party to another. Find out how to use one for your business here.

How to Create a Privacy Policy (2026 Update)

A privacy policy informs website users how you will handle their information. Find out how to create a Privacy Policy here.

How do Non-Solicitation Clauses work?

Do you want to know how non-solicitation clauses work? Read our guide to find out when to use this clause and how to protect your business.