Employment agreements are not only a legal necessity; they can help set the tone and feel of your business. They can add extra protections to your business that national award rates do not offer, such as confidentiality and notice periods. Securing your hires with an employment contract also formalises the arrangement with your new employee and will contribute to a professional and positive working relationship developing between the two parties. This Employment Agreement (Casual) is a great way to officially and easily hire a new casual employee. This document allows you to offer casual employment and document the terms of that employment to ensure clarity and provide a safeguard for any future disputes.

What is casual employment?

Casual employment is a type of employment in which an employee’s working hours and employment status are liable to change at a moment’s notice. A casual employee may have set hours or may only work when required to. They often work irregular hours compared to the regular hours of ongoing employment, permanent employment & part-time employment. Either way, casual employment involves little commitment from the employer or employee. For the employer, they can dismiss an employee on one hour's notice without paying out over a period or giving a notice of termination. Further, unless the casual employee has completed a minimum 12 months of service, they are not protected under unfair dismissal laws. For an employee, they can resign without having to give notice. Due to this, casual employment contracts do not contain probationary periods.

A casual employee tends to be paid a higher hourly rate through casual loading than a part time employee or full time employee. However, they do not have the same leave entitlements as other employees. A casual employee will not be paid for personal leave, sick leave, annual leave, carer's leave, compassionate leave or community service leave. However, they may be eligible to take paid long service leave for 2 months if they have been employed in that role for 10 years.

Amendments to the Fair Work Act made in 2021 now mean that a casual employee can request a part time or full time contract if they have been employed on that basis for more than 12 months. Those that satisfy the prior criteria are also called "long term casuals". An employer can only refuse if they can provide a sufficient reason as to why they cannot offer the employee part time or full time employment. After that time period they can also take parental leave.
On the note of pay, according to the National Employment Standards (NES) outlined in the 2009 Fair Work Act, casual employees are entitled to the modern award rate of pay when it comes to their minimum wage.

Changes to Fair Work Act and disclaimer:

To effectively set off award/agreement entitlements: any remuneration provided to employees must be high enough to fully meet the employer's award/agreement obligations, including for each and every pay period or roster cycle. The employer cannot rely on an award/agreement payment in another pay period/roster cycle to satisfy the obligation from an earlier pay period/roster cycle; and you must specify which award/agreement entitlements you intend to set off. If you do not, you may be unable to set off any above award/agreement remuneration against that award/agreement entitlements.

Use this Employment Agreement (Casual) if:

• You are hiring a casual employee;

• You want to formalise your employment arrangement with a casual employee;

• You want to safeguard yourself from any future disputes;

• You want to make your expectations and obligations for the role clear to a new employee and in their best interests.

What does the Employment Agreement (Casual) cover?

• Job title and position;

• General terms and conditions;

• Payment (hourly rate - weekdays, weekends, public holidays) & payment bank account;

• Ordinary hours of work;

• Superannuation contributions; and

• Termination of employment.

Other names for Employment Agreement (Casual) include:

• Employment Contract

• Job Agreement (Casual)

• Casual Contract

• Casual Employment Agreement

Other documents you may need:

• Part Time Employment Agreement

• Discrimination Policy

• Non-Disclosure Agreement (One Way)

• Grievance Policy

• Social Media Policy

Further information

• What is a Casual Employee

• Do Casual Employees have Leave Entitlements?

• Some Helpful Tips for Hiring Your First Employee

• What is the Difference Between Casual vs Full-time Employment?

• Casual Versus Part Time Employees: 5 Key Differences

• How to Hire an Employee

• Are Implied Duties Included in my Employment Contract?

• A Guide to NES: The 11 Employment Entitlements

• Is My Enterprise Agreement Part of My Employment Contract?

• Is the Modern Award Part of My Employment Contract?