Many businesses hire casual employees to help manage busy periods throughout the year.
A casual employee works on an irregular basis, with no expectation of ongoing work, but this doesn’t mean they miss out on the entitlements permanent employees receive.
Regardless of the type of employment, all workers must have an employment agreement and for casuals, this should outline the expectations of the role.
Casual employees are entitled to four weeks of annual leave, but if work is too irregular to allow an employee to take holidays, employers may pay upfront each pay cycle instead, by adding an extra 8% to the employee’s gross wage.
Employers should assess the work pattern, and if hours become regular, a new employment agreement must be signed changing the annual leave from up-front payment, to accrued time.
If an employer continues to pay 8% extra despite casual hours becoming regular, they may not be able to recover this money.
Casual employees are also entitled to sick and bereavement leave after six months if
they have worked an average of at least 10 hours each week and at least one hour a week or 40 hours a month.
For more information about casual employment, speak to Employsure today.