This page examines the pros and cons of casual work and provides a guide to some of the issues facing casual workers including:
> Flexibility vs. uncertainty
> Casual vs. permanent
> Less benefits
> Casual loading
> Links
Flexibility vs. uncertainty
Casual work offers more flexibility over your working hours than other forms of employment, but ongoing work is uncertain.
Not all casuals choose their own hours. Your employer will probably offer you hours to fit in with business opening hours and busy periods. You can decline work, but it may reduce the likelihood of more work offered in the future.
Definition of 'casual work'
There is no standard definition of casual work. One common definition describes casual jobs as jobs that are:
- Short-term or temporary
- Involve irregular hours
- Not guaranteed to be ongoing
Another definition describes casual employees as employees who don't get paid holiday leave or sick leave.
Generally speaking, casual employees are employed on an hourly, daily or weekly basis without any commitment - from the employee or the employer - of continuing work.
Casual employees don't usually work set hours, although some casual workers do work long, regular hours.
Casual workers are also often employed on an "as needed" basis.
Less benefits
Casual workers are entitled to some, but not all, of the benefits given to permanent workers.
Leave entitlements
In Victoria, casual workers generally don't accrue leave entitlements such as paid sick leave or annual leave. However, Victorian casual workers are entitled to long service leave and may also be entitled to paid parental leave, depending on the conditions of the relevant awards or agreements.
Penalties
Some casual workers are paid an overtime penalty if they work outside normal hours (e.g. if you work on Friday nights for a large retail outlet and are employed under the award).
But not all casuals get paid overtime penalties. If you work in retail for a small business, you may not be entitled to penalty rates for working outside normal hours.
To find out whether you're entitled to overtime penalities, check your:
- Federal award
- Certified Agreement
- Employment contract
Your employer can tell you if you're employed under an award or agreement. Wagenet (new window) will tell you what award or employment arrangement covers you and whether or not it incorporates overtime payments for casuals. Alternatively, contact Jobwatch on 1300 666 610.
Superannuation
If you're a casual between 18 and 70 years of age and earning more than $450 in a calendar month, your employer should be contributing superannuation on your behalf. Employers don't have to make contributions for employees under 18 and working less than 30 hours per week.
If you earn over this amount, your employer should make contributions into an approved superannuation fund on your behalf. Details of any contributions should be shown on your payslip. It's possible, if your working hours vary a lot, that your employer will have to make contributions on your behalf for some weeks and not others.
Find out more on our Superannuation page.
WorkCover
All employees, including casuals, are covered by WorkCover.
Casual loading
Casual loading is extra money paid to casual workers over and above the normal hourly rate. Most awards, agreements and industry sectors include a casual loading.
The casual loading is generally between 15 and 25 percent. This loading is compensation for the uncertainty of your continuing employment and less benefits, and it's also meant to act as a deterrent to employers, to discourage them from employing casual workers when they should be creating permanent jobs.
Whether or not you should be paid a casual loading will depend on your employment arrangement.
Links
Wagenet - Victorian wages and conditions
Wages and conditions of employment relevant to Victorian workers.
WorkChoices
This is the Federal Government's site explaining and promoting the new WorkChoices system. You can download a copy of the new legislation and a copy of the WorkChoices booklet.
Jobwatch Victoria
Victorian community legal centre specialising in employment law.
