What Differentiates Casual Employees from Part-Time Employees?

What Differentiates Casual Employees from Part-Time Employees?

Table of content

  1. What are casual employees and part-time employees?
  2. Benefits of casual employment and part-time employment
  3. How can Workstem help?

What are casual employees and part-time employees?

A casual employee

If an applicant accepts a job offer from an employer knowing that there is no solid commitment to continuous employment with a predetermined schedule, they are considered casual employees.

An employee may be classified as casual if, for instance, their roster is subject to weekly changes to accommodate their employer’s demands and they have the option to decline or switch shifts.

A person is considered a casual employee under the Fair Work Act specifically if:

  • They are offered a job;
  • The offer does not include a firm advance commitment that the work will continue indefinitely with an agreed pattern of work;
  • They accept the offer knowing that there is no firm advance commitment and become an employee.

Part-time employees

Less than 38 hours are worked by part-time workers each week, and their schedules are typically consistent. Usually, they have a fixed-term contract or are engaged permanently.

Benefits of casual employment and part-time employment

Benefits of casual employment

Having a casual job might have a number of unique benefits:

  • Significant flexibility is offered by casual employment, enabling companies to quickly modify personnel numbers to correspond with changes in the demand for the products and services of their company.
  • To provide them more freedom over their working hours, casual employees are free to accept or reject jobs as they see fit.
  • Because there is less payroll paperwork and a lower chance of an unfair dismissal claim if a worker is an irregular casualty, it offers administrative simplicity for a company.
  • Employers are not required to accrue paid time off for things like yearly leave and personal/caregiver leave.
  • Because they are paid more frequently, casual employees could prefer it to accrue vacation time.
  • Casual employees can take longer vacations or depart without having to submit an application.
  • Casual employees are exempt from receiving notice of termination or redundancy pay from their employers.
  • Casual employees are not required to give notice of termination when they quit a job and are free to work for various employers.
  • It enables a company to determine whether a candidate is qualified for a position before making an offer of employment, whether full- or part-time.

Benefits of part-time employment

When an employee has school-age children or other caregiving obligations, part-time employment can assist firms provide flexibility to their staff. A part-time worker with school-age children, for instance, can ask to end work early in order to pick up their kids from daycare or school.

Part-time employment has additional advantages for both employers and workers, such as:

  • Attracting applicants from a larger pool of individuals who desire or require less hours of work than a full-time position is advantageous for employers.
  • Keeping important workers who might not be able to or choose to work full-time
  • Maybe saving an employer money without cutting employees
  • Working part-time could be a cost-effective strategy in places where full-time employment is not necessary.
  • If part-timers can work extra shifts during peak times and would want to temporarily increase their income, their employer may be able to work out a roster arrangement.
  • Improved workers’ work-life balance
  • Greater freedom for employees to engage in other endeavours
  • Increasing commitment, productivity, and morale among employee
  • Lowers absenteeism

Differences in pay of casual employees and part-time employees

In Australia, casual employees are paid a higher rate compared to part-time employees to compensate for the lack of benefits such as sick leave, annual leave, and other entitlements that full-time or part-time employees receive. Casual employees typically receive a loading on top of their base hourly rate, which can range from 15-25% depending on the industry and award.

On the other hand, part-time employees are paid a pro-rata rate based on the full-time equivalent for their role. This means that part-time employees are paid a lower hourly rate compared to casual employees, but they are entitled to benefits such as paid leave and other entitlements.

Overall, casual employees tend to have a higher hourly rate compared to part-time employees in Australia in order to compensate for the lack of benefits and entitlements they receive. However, part-time employees may have more job security and consistent hours compared to casual employees.

Differences in hours of casual employees and part-time employees

Casual employees in Australia typically work irregular hours and are not guaranteed a set number of hours each week. They are often brought in to cover busy periods or provide additional support as needed by the employer. Casual employees are entitled to a higher hourly rate of pay compared to permanent employees, known as a casual loading, to compensate for the lack of benefits such as sick leave and annual leave.

Part-time employees, on the other hand, work regular hours each week but fewer hours than full-time employees. Part-time employees have set hours and are entitled to benefits such as paid sick leave and annual leave, on a pro-rata basis compared to full-time employees. They receive a lower hourly rate of pay compared to casual employees but have the stability of regular hours and entitlements.

Overall, casual employees typically work fewer hours than part-time employees, as they are not guaranteed a set number of hours each week. Part-time employees have set hours and work a consistent number of hours each week, making them more likely to work more hours overall compared to casual employees.

Differences in leave entitlements of casual employees and part-time employees

In Australia, casual employees do not have paid leave entitlements like annual leave and sick leave. Instead, casual employees are paid a higher hourly rate to compensate for the lack of paid leave entitlements.

On the other hand, part-time employees are entitled to paid leave benefits such as annual leave, sick leave, and carer’s leave. The amount of paid leave that part-time employees are entitled to is calculated based on the number of hours they work each week compared to full-time employees.

Overall, the main difference in leave entitlements between casual and part-time employees in Australia is that casual employees do not have paid leave benefits, while part-time employees do have paid leave benefits.

How can Workstem help?

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Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and customised rule set.

Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!

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