Casual workers have been a staple of the Australian workforce for many years. Businesses employ casual workers on a short-term or temporary basis to typically work irregular hours. However, many business owners are unsure about their legal obligations when providing leave entitlements to their casual employees. This article will explore whether casual workers have leave entitlements and an employer’s corresponding obligations.

What is a Casual Employee?

A casual employee is an employee who accepts an offer from an employer knowing there is no firm advance commitment to ongoing work. In other words, casual employees typically:

• do not have set hours of work; and
• are generally employed on a short-term or temporary basis.

Additionally, casual workers do not have the same level of job security as full-time or part-time employees and can be terminated without notice or reason.

Casual employees are often employed for a specific task or to cover a busy period, such as during seasonal work or holidays. They typically work irregular hours, including weekends and public holidays, and are entitled to a loading on their hourly rate to compensate for their lack of job security and entitlements.

Do Casual Workers Have Leave Entitlements?

Casual workers are entitled to certain leave entitlements under the National Employment Standards (NES) in the Fair Work Act 2009 (Cth). The table below explores these entitlements.

Entitlement

• Unpaid Carer’s Leave – Casual employees are entitled to two days of unpaid carer’s leave per occasion if they need to care for a family member or household member who is sick or injured.
• Unpaid Compassionate Leave  – Casual employees are entitled to two days of unpaid compassionate leave per occasion if a family member or household member has a life-threatening illness or injury or if a family member or household member dies.
• Community Service Leave – Casual employees are entitled to unpaid leave for community service activities, such as jury service or voluntary emergency management activities.

It is important to note that casual employees are not entitled to paid annual, personal/carer’s, or long service leave. These entitlements are only available to full-time and part-time employees

How to Calculate Casual Loading

Casual loading: is a percentage of the employee’s hourly rate. The percentage varies depending on the industry and the award or agreement that applies to the employee. For example, the casual loading rate under the Hospitality Industry (General) Award 2020 is 25%. To calculate the casual loading for a casual employee, you should multiply their hourly rate by the casual loading percentage. For example, if a casual employee’s hourly rate is $25 and the casual loading rate is 25%, the casual loading amount would be $6.25 per hour ($25 x 0.25).

Tips for Employers

If you employ casual workers, there are some tips you should keep in mind to ensure you are meeting your legal obligations and treating your employees fairly.

1. Understand Your Legal Obligations

As an employer, you must understand your legal obligations when employing casual workers. This includes understanding their entitlements under:

• the NES;
• the relevant award or agreement that applies to them; and
• any other relevant legislation.

2. Keep Accurate Records

Keeping accurate records of your casual employees’ hours worked, pay rates, and entitlements is essential. Accurate records will help you pay your employees correctly and meet your legal obligations.3.

3. Communicate Clearly With Your Employees

Clear communication is vital when employing casual workers. Make sure your employees understand their. entitlements;

• pay rates; and
• expectations for their roles.

This will help prevent any misunderstandings or disputes down the line.

4. Seek Advice

If you are unsure about your legal obligations or how to treat your casual employees fairly, you should seek advice from a professional. You might consider speaking to an employment lawyer, HR consultant, or industry association.

Key Takeaways

As an employer, you should be aware that casual workers have some leave entitlements under the National Employment Standards, including unpaid carer’s, compassionate, and community service leave. However, they are not entitled to paid annual, personal/carer’s, or long service leave. Casual employees may be entitled to a casual loading payment to compensate for their lack of entitlements. In saying that, small business employers must understand their legal obligations and treat casual employees fairly. Small business owners can ensure they meet their obligations and maintain a positive working relationship with their casual employees by keeping accurate records, communicating clearly, and seeking advice.

For legal assistance, visit LegalVision.