Permanent vs Casual: What’s the Difference?

Casual Employment

Casual Conversion Explained

Casual to permanent conversion In October 2018, many modern awards received a new clause that provided casual employees with an entitlement they did not have before. Called ‘casual conversion’, this clause provides, in specific circumstances, casual employees the right to request their employment be made permanent (i.e. part-time or full-time employment) But what is casual conversion, and how may it impact your business? NB: this article will discuss casual conversion as it is laid out in the model clause. A model clause is the clause which has been incorporated as standard in the majority of awards. It is not included in all awards and you should always check the applicable modern award and seek advice relevant to your specific circumstances. This article is current as of January 2020. What is casual conversion? The casual conversion clause entitles casual employees to request to have their employment ‘converted’ to full-time or part-time work. However, there are a few pre-conditions that need to be met. For example, the employee is required to have been working for at least 12 months with the employer, on a regular basis. If an employee hands in a casual conversion request, an employer can only refuse it on reasonable grounds after consulting with the employee. Reasonable grounds include, but are not limited to, if the conversion would require a significant adjustment to a casual employee’s hours of work or if the employer could foresee the employee’s position as no longer existing in the next 12 months. NB: As mentioned Award provisions can vary. For example, some Awards provide for the right to request casual conversion after 6 months. What is the casual conversion clause? The casual conversion clause has, as of January 2020, been inserted into the majority of Modern Awards. Prior to that, some Awards had casual conversion provisions as it was standard practice in certain industries. What is a long-term casual cmployee? In the model casual conversion clause, a ‘long-term’ casual employee isn’t defined as such. However, the clause does define what a ‘regular casual employee’ is – a casual worker who has worked a pattern of hours on an ongoing basis, for the past 12 months, which without significant adjustments could be performed on a permanent basis. One condition that an employee must meet to successfully request casual conversion is that they are a regular casual employee. Employee’s right to request casual conversion Any casual employee can request casual conversion. But employees are not obligated to accept that request, if certain requirements are not met.One of those requirements is that the employee be a regular casual employee (discussed above) and has been working for the employer for at least 12 months. If they have been working equivalent full-time hours, they may request to have their work converted to full-time. And if they’ve been working less than the equivalent full-time hours, they may request part-time conversion. When submitting a request to their employer, the request must be in writing. Converting casual to permanent employment If a request to convert is accepted by the employer, the two parties must then discuss and record (in writing) whether the employee will become a full-time or part-time employee. If it is agreed that the employee is to become part-time, then any part-time employment requirements must be set. Such provisions may require that the employer and employee agree in writing to things such as the days the employee will work, the start and finish time on each day and the numbers of hours each week which will be worked. The conversion will then take effect from the next pay-cycle, unless otherwise agreed. Once an employee has successfully converted, they will remain a permanent employee unless there is a written agreement between the employer and employee to change the relationship again. What does it mean for your business? Begin forecasting Keep a close eye on how the additional entitlements available to part-time and full-time staff could affect your business. This can be both financial, as well as the additional obligations you need to meet as an employer. **Performance manage under-performing staff If your casual staff are going to have the right to request part-time or full-time work after 12 months, then you want to make sure they’re the kind of staff you want to keep in your business long-term. If there are any under-performing casual staff in your business, start performance management plans early. Get advice Managing staff, entitlements and potential conversion of casual staff to part-time of full-time employees is a complex process. Don’t do it alone — get professional advice to protect your business. For any advice on understanding and implementing these changes, contact Peninsula today.

Casual Employment

Casuals or Fixed-Term Employees Over Busy Periods?

You’re back in business! It’s busy-a-go-go! After a long slow year of lockdowns, you may suddenly find yourself on a merry go round of staff hiring, now that borders have re-opened in Australia. It was hard enough to find the right staff for your business before, but now it may seem impossible. We can help you decide if you should employ casuals or fixed-term employees over busy periods. There are a few options available for businesses to consider depending on the individual requirements of the role. It is important for businesses to be aware of the advantages and disadvantages of each option in order to set the business up for success during this period. What Is the Difference Between Fixed-Term and Casual Employees? Fixed-Term Employment Fixed term refers to someone you hire for a predetermined amount of time, for example, to cover someone on maternity leave or project. This can be 38 hours a week for a period of a year or only five hours a week for a total of two weeks. The hours of employment are guaranteed for a specified period. At the end of that period, both parties understand that the engagement is terminated. For example, you may only be hiring someone for one month to give yourself time to find a permanent employee. Perhaps you are only hiring someone in December until the holiday season is over. It is important to clarify these terms in writing with your employee. Casual Employment A casual employee is not guaranteed a certain number of hours. Nor are they obligated to be available for work. In other words, they will work for you when you need them and when they are willing. A genuine casual employee should have irregular hours. Hiring Casuals Over Busy Periods During busy seasons, engaging employees on a casual basis will usually provide employers with the most flexibility in relation to fulfilling their resource requirements. Due to the nature of casual employment, casual employees generally have no guarantee of hours and can be called upon as required by the Employer. The Advantages Flexibility for the employer to meet increased demand or a specific task You are under no obligation to retain the employee (before they meet a certain length-of-employment threshold) No need to pay leave entitlements and maybe a cheaper resource for sporadic tasks than other forms of short-term employment The Disadvantages Casuals will attract a higher hourly rate in lieu of entitlements granted to permanent staff Casuals are usually required to be engaged for a minimum period (e.g. 3 hours) per shift depending on the relevant award Some awards require a casual to be offered permanent (full-time/part-time) employment after a specific period (commonly 6 months) Casuals have the ability to reject shifts offered to them Casual employees can be difficult to retain and may be less committed to the business Long term, regular casuals may become eligible for additional entitlements provided to part-time and full-time employees. Hiring Fixed Term Employees Over Busy Periods Engaging an employee for a fixed-term period (e.g. Christmas holiday period) may provide employers with a more cost-efficient option (lower hourly rate than casuals) and attract a larger pool of potential employees due to the guarantee of hours over for a fixed period. You can engage employees on a full-time or part-time basis under this option. Additionally, employees engaged on a fixed-term basis are generally excluded from access to unfair dismissal, provided their employment is terminated at the end of the specified period. The Advantages Fill an immediate gap in your workforce You can recruit a specialist, already proficient in a particular skill or project More accurate budgeting and resource planning Can be a great way to trial an employee before offering permanent work The Disadvantages There is generally less flexibility in varying the hours a fixed term employee works, as set hours are guaranteed Fixed-term employees will be entitled to personal and annual leave on a pro rata basis Fixed-term employees rostered to work on a public holiday are generally required to be paid even if the business is not trading Part time fixed term employees are also often required to be engaged for a minimum period per shift under the relevant award Continuously extending or rolling over a fixed-term contract of employment may risk the position being considered permanent. It is important that you clearly document and record the type of agreement. Failing to clearly document the type of engagement in an employment contract could expose the business to potential claims. If you are unsure of whether your employee is a fixed-term or casual worker, contact us. There can be overlaps, which can make it confusing. We can also help you determine minimum casual rates of pay and come up with a fixed-term or casual worker agreement. Contact Peninsula to get all your tricky questions answered.

Casual Employment

Understanding Casual Employment

Understanding casual employment can be complex and confusing. If you are a business owner, you need to be aware of new changes in legislation. Do you employ casual workers? In 2020, the Full Federal Court (in the judgement of Workpac Pty Ltd v Rossato) announced that your casual workers can, in some circumstances, still be considered as permanent employees. Regardless of what their contract states and regardless of the payment of casual loading. This decision took several industries by shock and created confusion among employers. The Federal Government estimated the potential cost to employers to be between $18 billion and $39 billion. In short, the effect of this ruling was that some “casual” employees will be entitled to paid annual leave, personal/carer’s leave, compassionate leave, and public holidays. In addition, the Court ruled that the casual loading paid to the employee could not be claimed back by the employer. This aspect of the ruling was informally labelled ‘double dipping’ as affected casuals were able to access both sets of entitlements. However, in August 2021, the High Court overturned this decision and amended the Fair Work Act 2009 to include a statutory definition of ‘casual employee’ and inserted provisions to deal with casual loading. If you employ casuals, your business may have been affected by this decision and the overturning of the ruling. If you would like to review your contracts or understand more about casual employment, then get in touch with Peninsula today and we can advise you on your business needs. Call us on 1300789186 to find out how we can help you.

Casual Employment

The Ultimate Guide to Christmas Casual Employment

The festive season is a critical time for Australian businesses. From bustling retail stores to vibrant hospitality venues, the holiday rush requires extra staff to meet customers' needs.This is where casual employees become invaluable assets, injecting fresh energy and flexibility into your workforce. However, navigating recruitment, management and legal compliance for Christmas casual jobs can be tricky.  This comprehensive guide explores the intricacies of employing seasonal staff and ensuring a smooth transition post-holiday season. Unlocking the benefits of Christmas casuals First, let's acknowledge the advantages of utilising casual staff during the festive period. By bringing on Christmas casuals, you gain: Flexibility: Scale your workforce seamlessly, adapting to fluctuating customer demand without committing to fixed financial overheads associated with permanent employees. Fresh perspectives: Inject new ideas and energy into your team, fostering innovation and adaptability. Potential for future talent: Discover potential long-term employees through positive experiences, building a strong talent pool for the future. Planning for Christmas casual recruitment Before diving into recruitment, it's crucial to lay the groundwork. Start early: Start the recruitment process early to access a wider talent pool. Know your needs: Clearly define the specific jobs you need to fill, the required number of staff and their expected working hours. Budget wisely: Factor in rates of pay per hour, casual loading (a mandatory pay increase for casual employees), and other costs like training materials or festive incentives. Recruiting the best Christmas casuals   Your business will benefit from a capable and engaged workforce. Set yourself up for success at Christmas.  Find top talent: Explore diverse recruitment channels like online job boards, social media platforms or recruitment agencies to reach a wider pool of candidates. Craft compelling ads: Highlight the festive perks, flexible hours and potential for learning and growth opportunities in your job descriptions. Highlight specific skills or experiences beneficial for the job, ensuring candidates can hit the ground running. Communicate transparently: Clearly outline the temporary nature of Christmas casual jobs, including expected duration, pay per hour, potential for permanency and any prerequisites for flexibility in working hours. Streamline selection: Conduct efficient interviews and reference checks to identify qualified candidates who align with your company culture and values. Onboarding and training: Setting the stage for success A smooth onboarding process sets the tone for a positive employee experience. Here's how to do it right: Tailored onboarding  Welcome those in new Christmas casual jobs warmly and provide a clear itinerary for their onboarding, including their first day, introductions, training sessions and necessary paperwork. Focus on key areas that will enable them to be productive and contribute effectively during their short tenure.  Comprehensive training  Offer job-specific training on company policies, procedures, equipment usage, safety, and essential job skills. Utilise a mix of hands-on training, online resources, and mentorship for effective knowledge transfer. Management and engagement: Keeping festive spirits high Motivating and engaging your temporary workforce is key to maximising their productivity and creating a positive work experience. Here are some tips.  Communication is key Clearly communicate expectations, responsibilities, and feedback channels to ensure understanding and alignment. Schedule smartly  Develop fair and transparent scheduling practices for these new jobs that balance business needs with employee preferences for shift timings and days like weekends and public holidays. Performance incentives Acknowledge contributions, offer festive incentives, and show appreciation for their hard work to boost morale and motivation.  Inclusive culture Integrate Christmas casuals into your team to build a sense of belonging and encourage collaboration. Celebrate milestones and create a positive work atmosphere where everyone feels included and valued, enhancing overall productivity and morale during the busy season. Navigating post-holiday transitions When the festive season concludes, it’s important to handle the inevitable transitions and farewells with transparency and professionalism.  Clear end-of-contract communication Ensure Christmas casuals are aware of their contract end dates from the outset and provide reminders as the conclusion of their employment approaches. Inform employees well in advance about the wind-down process, including their final pay schedule and any paperwork requirements. Gratitude and recognition Thank your seasonal employees for their valuable contributions. Acknowledge the efforts of Christmas casual employees with gestures of appreciation, reinforcing a positive relationship for potential future employment. Exit Interviews Conduct exit interviews to gain insights into their experience, which can inform future recruitment and management strategies for seasonal staff. Finalise paperwork and legal obligations  Process payments accurately and promptly for all Christmas work to ensure all final wages including accrued leave and overtime are paid accurately and on time as per contractual agreements. Keep accurate records of employment, including contracts, payslips, and performance reviews, for future reference and legal compliance. Beyond the festive season: The path forward Take the time to learn from your season recruitment experiences and set yourself up for future success. Evaluation for permanent opportunities Assess the performance and fit of Christmas casuals for any available permanent positions, offering opportunities to standout employees to continue with the company. Create a talent pool Maintain connection with your former seasonal employees through social media or an email database. Develop a talent pool of former Christmas casuals who can be readily contacted for future peak periods, reducing recruitment time and costs. Feedback loop Use the feedback from Christmas casuals to refine your recruitment, onboarding, training, and management processes for seasonal employees, ensuring continuous improvement. Christmas casuals and your legal obligations  Ensuring legal compliance is crucial throughout the seasonal hiring process. Here's what you need to know: Know your obligations: Familiarise yourself with the Fair Work Act relevant industry awards and casual loading regulations to ensure you're adhering to all legal requirements. Contracts are key: Provide a clearly written employment contract outlining the employee's pay, working hours, termination clauses and other essential details. Record-keeping matters: Maintain accurate and detailed timesheets and pay slips for each employee as proof of compliance with regulations. Safety first: Prioritise a safe and discrimination free work environment for all employees, including your casual staff. Ready to enhance your seasonal hiring strategy? Successfully navigating the festive season requires more than just additional hands — it calls for strategic planning, effective management and forward-thinking to transition smoothly into the new year. Christmas casual employment, when managed well meets immediate business needs, and builds a reservoir of potential talent for the future. Peninsula is here to support your business through the festive season and beyond. From refining your recruitment strategy to managing transitions post-holidays, our experts offer tailored advice and solutions to make your seasonal staffing a success. Reach out to Peninsula today. 

Casual Employment

Fixed-term, Casual and Permanent – What is the Difference?

From the day you hire your first employee, you need to understand how your employee can be engaged. This way you can accurately advertise for a fixed-term, casual, permanent or other position when the time comes. Having a complete understanding of the varying types of employment engagements is vital to your business. In particular, you need to understand the particular engagement of your employees, the most common of which include casual, permanent, and fixed-term employees. The employment contract should reflect the type of engagement which the employee will be employed under, as well as the employment conditions that are agreed between the employer and employee. Keep reading to learn about different some common employment engagements, along with some of the most frequently asked questions about employment status. Types of Employment Not all employment engagements are the same. Each type of employment engagement brings with it a different set of obligations for the employer and rights for the employee. Are you confident you know the difference between full-time and fixed-term, part-time and casual? The following information is general in nature. The applicable Modern Award or enterprise bargaining agreement may provide different entitlements and definitions than discussed below. Permanent (Full time or Part time) Permanent employment is the most common employment type in Australia. The term ‘permanent employment’ covers both full-time and part-time employees. It is common for permanent employees to agree in advance to employment conditions including that they will work certain days and hours for the company on an ongoing basis until their employment is terminated one way or another (via resignation, redundancy, dismissal for misconduct, etc). This means they can expect to work regular hours each week for an indefinite period of time. Permanent employees are entitled to various entitlements including, but not limited to, paid annual leave, paid sick leave, paid long service leave and notice of termination. In many cases, these entitlements might be applied on a pro-rata basis for part-time employees. Fixed-Term Fixed-term employees have the same entitlements as a permanent full-time or part-time employee. Their employment differs from that of permanent employees in that the contract is for a fixed-term (e.g. 12 months) or for the duration of a specific project as opposed to an ongoing employment arrangement. The contract for a fixed-term employee states directly when the term of employment will end. Fixed-term employees are often engaged to cover for an absent employee (e.g. as maternity leave cover), to fill a human resources gap, or staff a big project. Typically, fixed-term contracts will run anywhere from a few months to a year, however, can also be for as long as a few years. Fixed-term employees have the same rights under the applicable industrial instrument as permanent employees such as leave entitlements and allowances. Casual Casual employment has been determined by the courts and it will depend on the manner in which the casual employee is engaged if they are casual or not ie whether the employment is ad hoc, or if there is a firm advance commitment of ongoing employment. The contract for a casual worker may outline the business hours of operation, however, generally should not include any guarantee to ongoing work (unless a Modern Award or enterprise bargaining agreement provides otherwise). This means that contract should not provide a minimum or maximum number of hours per week. Temporary Employment You can hire temporary employees to meet temporary business demands. Temporary employees often come in the form of a new fixed-term or casual employee or may be engaged as a contractor. The fixed-term and casual employment types provide employers with the flexibility to more easily manage the uncertainty of temporary employment. If you’re thinking about making some temporary hires, this article outlines the pros and cons of fixed-term and casual staff. Keep in mind that the applicable Modern Award or enterprise bargaining agreement may contain specific provisions for hiring temporary employees. If you are wanting to engage a contractor to fulfil your temporary needs, then you should review your contractor arrangements to identify any risks of sham contracting. Key Differences Between Permanent, Casuals, and Fixed Term Permanent employees arguably have the strongest job security of these three types of employment. They have a contract that states their agreed hours and are expected to attend work for their contract hours (when not on leave or another approved absence). Permanent employees are entitled to most of the commonly known workplace entitlements – including paid leave and notice of termination, amongst other things. Both permanent and regular and systematic casuals become entitled to claim unfair dismissal after their minimum employment period. Permanent employees, in contrast, have an expectation of ongoing work from their initial engagement, whereas casuals do not. Casuals do not generally have access to paid leave and in some circumstances may not have access to unfair dismissal provisions as discussed above. Employers have much more flexibility with regards to giving casuals notice of termination. Employers do not generally need to give casual employees notice, however may need to be cautious of minimum engagement periods in Modern Awards. However, casuals are entitled to casual loading (generally 25% on top of minimum hourly rate) and do not have to be available to work. Employees on fixed-term contracts have some of the same entitlements as permanent employees in equivalent roles. If the employee has not been engaged on back to back contracts and their employment is ended in line with the specific end date or project as outlined in their employment contract, they should not have access to unfair dismissal. If you are still unsure, get peace of mind by speaking to an Peninsula specialist for free advice today on 1300 651 415. Want To Know More? When you understand the difference between employee status’, you can start hiring purposefully. Keep your company safe and use an employment relations service. For all your employment relations questions, contact us. Here is an infographic outlining the different types of employment contract: fixed term, casuals and permanent (full-time and part-time).

Understanding Part-Time vs. Full-Time Employment in Australia: A Comprehensive Guide

What is full-time employment?

What is part-time employment?

The Key Differences: Full-Time vs. Part-Time

Working hours

Entitlements

Commitment

Other differences

Choosing between full-time and part-time work

Managing full-time and part-time staff

Employment contracts

Pay and wages

Hiring and onboarding

Annual leave

Superannuation

Need more guidance?

Have a question?

Related Blog Posts

Casual Conversion Explained

Casuals or Fixed-Term Employees Over Busy Periods?

Understanding Casual Employment

The Ultimate Guide to Christmas Casual Employment

Fixed-term, Casual and Permanent – What is the Difference?

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