Casual employment: Overview, definition, and example
What is casual employment?
Casual employment refers to a work arrangement where an employee is hired on an as-needed basis without a guaranteed set number of hours or long-term job security. Casual employees are typically paid only for the hours they work and may not receive the same benefits as full-time or part-time employees, such as paid leave or job protections.
For example, a retail store may hire extra staff during the holiday season on a casual employment basis, where workers are called in only when needed.
Why is casual employment important?
Casual employment is important because it provides flexibility for both employers and employees. Businesses can adjust their workforce based on demand, while workers have the freedom to take on temporary or short-term roles without long-term commitment.
For employers, casual employment reduces labor costs and allows them to quickly adapt to changing business needs. For workers, it can provide flexible scheduling and the ability to gain work experience without being tied to a permanent role. However, casual employees often lack job security and certain benefits, making it essential for employment contracts to clearly define the terms of engagement.
Understanding casual employment through an example
A restaurant hires extra servers during the summer to handle increased customer traffic. These employees are scheduled based on demand, with no guarantee of ongoing work once the busy season ends. The restaurant is not obligated to provide regular hours, and the workers can decline shifts if they are unavailable.
In another case, a construction company hires casual laborers for specific projects. Workers are only called in when extra manpower is needed, and there is no long-term commitment beyond each assignment. Once a project is completed, there is no obligation to provide further work.
Example of a casual employment clause
Here’s how a casual employment clause might appear in a contract:
“The Employee is engaged on a casual employment basis, meaning there is no guarantee of regular or ongoing work. The Employer may offer shifts based on operational needs, and the Employee has the right to accept or decline such shifts. Casual Employees are compensated at an hourly rate and are not entitled to paid leave or other benefits unless required by applicable law.”
Conclusion
Casual employment offers flexibility for both employers and employees by allowing work to be scheduled on an as-needed basis. However, because casual workers do not have guaranteed hours or benefits, it is crucial to clearly define their rights and obligations in an employment agreement. A well-drafted casual employment clause ensures transparency and helps prevent misunderstandings about job expectations and entitlements.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.