In Australia, casual employment is common across industries such as hospitality, retail, and construction, Casual employees are hired on an “as needed” basis, with no expectation of regular hours. As an employer, you need to clearly understand how your casual employees differ from other forms of employment and how to comply with Fair Work regulations when managing casual worker rosters.
Casual Work under Fair Work
The Fair Work Ombudsman defines casual workers as employees who accept work without a firm commitment to ongoing employment. Casual employees often don’t receive the same entitlements as regular employees, like paid sick leave or annual leave but are entitled to a higher hourly pay rate known as “casual loading” at 25% in addition to their base hourly rate.
According to the Fair Work Act 2009, casual employees must receive the National Employment Standards (NES), which include unpaid leave entitlements, a minimum rate of pay, and protection from unfair dismissal. Additionally, they have the right to “casual conversion” after 12 months of employment, meaning they may request to switch to full-time or part-time work if they meet certain conditions.
Challenges of Casual Employee Rostering
Casual employees typically have more flexible and irregular schedules. Employers must navigate several challenges to ensure effective rostering while maintaining compliance with Fair Work requirements:
- Fluctuating Availability: They often have other jobs, studies, or personal commitments, making their availability less predictable.
- Peak Demand Periods: Retailers or hospitality businesses, for instance, might need more casual employees during peak periods like holidays or weekends.
- Compliance with Minimum Hours: Some industry-specific awards, such as the SCHADS Award (Social, Community, Home Care and Disability Services), dictate the minimum shift lengths and require casuals to work no less than the agreed minimum.
- Casual Conversion: Businesses need to be mindful of casual employees who become eligible for permanent employment under casual conversion rules.
Tips and Practices
1. Use a Rostering Software
Investing in rostering software can help you schedule casual employees effectively. Many systems now allow businesses to create schedules based on employee availability, forecast staffing needs, and easily track attendance. With features like shift-swapping and bulk scheduling, these tools can help reduce errors, save time, and ensure compliance with Fair Work.
Some softwares such as Workstem’s rostering tool can also track overtime, penalty rates, and compliance with Modern Awards, ensuring your casual workers are paid accurately and fairly.
2. Plan Ahead but Stay Flexible
While casual employees often prefer short-notice shifts, providing them with more advanced notice can improve employee satisfaction and reduce absenteeism. Be sure to give them adequate time to plan around their other commitments.
However, staying flexible is also key. With tools like shift-swapping features, casual employees can manage their schedules more easily, resulting in fewer conflicts or last-minute cancellations.
3. Communicate Clearly and Consistently
Clear communication is vital for ensuring casual workers are aware of their shifts, responsibilities, and any changes to their schedules. It would be recommended to have an app or a rostering software with built-in communication features to notify workers of upcoming shifts, changes, or important information.
4. Keep Accurate Records
Maintaining detailed records of casual employee schedules, attendance, and hours worked is essential for compliance with Fair Work regulations. Proper record-keeping also helps you manage payroll, track labor costs, and identify patterns that could improve future rostering.
5. Comply with Labor Laws and Awards
When scheduling casual employees, be sure to comply with all applicable Modern Awards and National Employment Standards. Awards such as the Retail Award or the Hospitality Industry Award specify minimum shift lengths, penalty rates for weekend or night work, and other entitlements that apply to them.
For example, employees under the Retail Award must receive at least 3 hours per shift, and those under the SCHADS Award may be entitled to overtime if they work beyond their scheduled hours. Non-compliance with these awards can lead to penalties and back-pay claims, so it’s important to follow the rules.
To Wrap Up
Rostering for casual employment may be challenging, but with the right strategies and tools, you can optimise the process and maintain compliance with Fair Work regulations. By using the right rostering software, planning ahead, staying flexible, and keeping clear communication with your workforce, you can manage these casual employees effectively and help your business thrive.
How Does Workstem Help?
Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.
Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and custom rule set.
Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!
Read More:
All you need to know: Casual Employment Information Statement (CEIS)
Understanding Casual Employment Rights in Australia
Casual Employment and Superannuation: What You Need to Know
Casual workers: Are You Paying Tax Correctly?
Payroll Compliance for Casual Employees in Australia 2024
Efficient part-time employee scheduling and attendance with Australia’s best rostering software