What is casual worker?
Casual labour or casual worker refers to temporary or part-time employees. Since the pay period of casual workers is short, and the pay date and mode is not that standardised, employers can freely manage casual workers.
Why is casual worker important?
Many employers in the retail and service industries say when “casual worker” is mentioned, “free from worry” and “save money” come to mind at the first time.
Notice of casual worker management
When employers manage casual workers, they must follow the leads of Ordinance 418.
According to the Labour Legislation, regardless of the employment type, employees are under the statutory entitlements once they are employed by the continuous contract, which means employers should give casual workers the entitlements as full-time employees’, such as paid annual leave, sickness allowance, and long service payment, etc.
Besides, for casual workers under the age between 18 and 64 in catering or construction industries, if the employee is employed by an employer on a daily basis or for less than 60 days, even he is employed only for one day, the employer must make an MPF scheme for the temporary employee regardless of Ordinance 418.
The benefits of casual worker
Since most of the companies only have peak seasons at a certain time of the year, it seems more cost-effective to employ casual workers at that time than to hire high-paid full-time employees.
Similarly, if the employee neither works in the catering industry, nor meets the condition of Ordinance 418, the employer can further reduce the welfare cost, and can also flexibly arrange time, creating a win-win situation.
Workstem
Through Workstem’s cloud-based, one-stop Payroll and HRM platform, employers not only can accurately record employees’ attendance and clock-in/out records, but also can check whether each employee complies with the Ordinance 418 at any time to ensure the legal compliance of employment.
On the other hand, through our powerful MPF function module, enter the employee’s join date, and the system will automatically calculate the exempt contribution period for you. The process from calculation can be done with just one click!
Read more: Many Part-time Employees? How to Take Care of the “418” Rule?