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 38 hours per week, have regular and predictable working hours and are entitled to paid leave.

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 Employees

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

Casual employees 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.

We take a look at the differences between casual and part time workers in more detail below! 

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

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

	Part-Time Employees	Casual Employees
Work Hours	Have guaranteed hours of work and, on average, work less than 38 hours per week	No guaranteed work hours. Work hours are generally irregular and unpredictable
Leave	Entitled to paid leave. Leave entitlements include annual leave, sick leave and parental leave	Paid leave entitlements are available after six months, as long as they have worked at least 10 hours per week, with a minimum of 1 hour a week or 40 hours in one month
Pay	Usually, pay is based on an annual salary as outlined by the Employment Agreement	Usually, pay is based on an hourly rate of pay
Public Holiday Payments	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
Notice Period	Notice period is typically set out in the Employment Agreement. They are entitled to written notice or payment if their employer wishes to terminate their employment	No notice is required. This is unless a notice period if set out in the Employment Agreement

What About Superannuation?

There are no differences here! 

Both casual and part-time employees are entitled to a percentage of the value of their ‘ordinary time earnings’ (this includes shift loadings, but not overtime payments). 

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. 

If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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