The Difference Between Fixed-term, Casual, and Permanent Employment

The Difference Between Fixed-term, Casual, and Permanent Employment

Table of content

  1. What is Fixed-term, Casual, and Permanent Employment?
  2. What are the differences between Fixed-term, Casual, and Permanent Employment?
  3. What are the entitlements for Fixed-term, Casual, and Permanent Employment?
  4. How can Workstem assist you?

What is Fixed-term, Casual, and Permanent Employment?

Fixed-Term

The same benefits are available to fixed-term workers as they are to full- or part-time permanent workers. Their employment is different from that of permanent employees in that, rather than being an ongoing employment agreement, the contract is for a fixed-term (such as 12 months) or for the duration of a particular project. The termination date of a fixed-term employee’s employment is expressly stated in their contract.

Fixed-term workers are frequently hired to staff major projects, cover for absentee workers (such as those on maternity leave), or close a human resources shortage. Fixed-term agreements often last for several months to a year, although they can potentially last for several years.Under the relevant industrial instrument, fixed-term workers have the same rights as permanent workers with regard to benefits like paid time off and allowances.

Casual

The definition of casual employment has been established by the courts, and it will rely on how the employee is engaged, i.e., whether they are employed on an as-needed basis or whether a definite commitment to continuous work has been made in advance.

Although a casual worker’s contract may specify the hours of operation, it usually shouldn’t contain a promise of continuous employment (unless specifically stated in an enterprise negotiating agreement or Modern Award). This implies that there shouldn’t be a minimum or maximum amount of hours per week specified in the contract.

Permanent Employment

To handle sporadic needs from your firm, you can hire temporary workers.Temporary workers might be contracted as independent contractors or as new fixed-term or casual employees.Employers can more readily manage the uncertainty of temporary employment with the flexibility offered by fixed-term and casual employment types.

Remember that there can be special guidelines for recruiting temporary workers under the relevant Modern Award or enterprise bargaining agreement.In order to mitigate the risk of sham contracting, you should evaluate your contractor agreements if you intend to hire a contractor to handle your temporary needs.

What are the differences between Fixed-term, Casual, and Permanent Employment?

Out of these three employment kinds, permanent employees arguably enjoy the highest job security. They are required to work within the hours specified in their contract (when they are not on leave or another authorised absence), as stated in their contract.

The majority of well-known workplace benefits, such as paid time off and termination notice, are granted to permanent employees.

After their minimum employment duration, permanent employees as well as regular and systematic casual employees have the right to file an unfair dismissal suit. Contrarily, casual workers do not anticipate to work continuously after their initial commitment, while permanent employees do.

In general, casual workers are not eligible for paid leave, and under certain conditions, they might not be eligible for the previously mentioned measures against wrongful dismissal. Employers are far more free to decide how to give casual employees notice of termination. Although casual employees typically do not require notice, employers may still need to be aware of minimum engagement periods under Modern Awards.

Casual workers, however, are exempt from having to be available for work and are entitled to casual loading, which is typically 25% more than the minimum hourly wage.

Certain benefits are available to workers on fixed-term contracts that are also available to permanent workers in comparable positions. The employee shouldn’t be able to file an unfair dismissal claim if their employment concluded in accordance with the project’s deadline or particular end date specified in their employment contract and they weren’t engaged on consecutive contracts.

What are the entitlements for Fixed-term, Casual, and Permanent Employment?

In Australia, employees in fixed-term, casual, and permanent employment have different entitlements and benefits under the Fair Work Act 2009.

Fixed-term employees are hired for a specific period of time or for the duration of a specific project or task. They are entitled to the same rights and benefits as permanent employees, including:

  • Minimum wage rates set by the Fair Work Commission
  • Paid annual leave and sick leave
  • Public holiday entitlements
  • Provision of a safe and healthy work environment

Casual employees are employed on an irregular or intermittent basis with no guaranteed hours of work. They are entitled to:

  •  Casual loading, which is a higher rate of pay (usually around 25%) to compensate for the lack of permanent employment benefits
  • Paid annual leave entitlements based on the hours worked
  • Protection from unfair dismissal after a period of regular and systematic employment

Permanent employees are employed on an ongoing basis with regular hours of work. They are entitled to:

  • Paid annual leave, sick leave, and long service leave
  • Notice of termination and redundancy pay
  • Protection from unfair dismissal
  • Access to benefits such as superannuation, parental leave, and other additional entitlements specified in their employment contract

It is important for both employers and employees to be aware of their rights and entitlements under Australian employment law to ensure fair and lawful working conditions.

How can Workstem assist you?

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