Casual employment is employment with no firm advance commitment to continuing work, where employees receive casual loading instead of leave entitlements.
Legislation: Fair Work Act 2009 s15A | Category: Employment Types
What is Casual Employment?
Casual employment is a form of employment where there is no firm advance commitment to continuing and indefinite work according to an agreed pattern of work. The definition of casual employment was clarified by amendments to the Fair Work Act in March 2021 following the WorkPac v Rossato High Court decision.
An employee is a casual employee if they are offered employment on this basis, accept it knowing there is no firm advance commitment, and are entitled to a casual loading or specific casual rate of pay. The emphasis is on the true nature of the employment relationship at the time of engagement, not how the relationship operates in practice.
Key Compliance Points for Employers
- Casual employees must receive a casual loading (typically 25%) to compensate for lack of entitlements
- Casuals are not entitled to paid annual leave, personal leave, or notice of termination under the NES
- Long-term casuals may have conversion rights and protection from unfair dismissal after 12 months
- The Casual Employment Information Statement must be provided before or as soon as practicable after starting
- Misclassifying permanent employees as casuals creates significant back-pay liability
Frequently Asked Questions
Can a casual become permanent automatically?
No. Conversion requires either an offer from the employer (for businesses with 15+ employees after 12 months) or a request from the employee. The employee can accept or decline.
Do casuals get superannuation?
Yes. Since 1 July 2022, all casuals receive superannuation on their ordinary time earnings regardless of how much they earn.
Can casuals claim unfair dismissal?
Yes, if they have been employed for at least 12 months on a regular and systematic basis with a reasonable expectation of continuing employment.
