Casual VS Permanent Part-time: What it Means For Your Workplace Rights

Permanent part-time employees are those who work ongoing and regular hours of work, but not as many hours as a full-time employee does. The terms and conditions that are attached to part-time employment are always specified by modern awards, an enterprise agreement, or other industrial instruments. These conditions include pro rata basis entitlements, the spread of part-time employees’ hours, and the entitlements surrounding overtime.

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The Criteria For a Part-Time Employee

You are deemed to be a part-time employee if you are employed under these circumstances:

1. You work fewer than 38 hours per week (often less than 38 hours), and
2. You’re a permanent employee (or you have a fixed-term employment contract)
3. You have a regular structure of hours

Entitlements such as sick leave, annual leave, and carer’s leave are granted to part-time employees on a pro rata basis according to the hours they worked. Also, ongoing employment (or a fixed-term contract) must be guaranteed to part-timers, and to end their ongoing work, they must provide notice or be given it in writing (often referred to as a notice of termination process).

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Permanent Part-time Benefits

The benefits of permanent part-time employment include guaranteed hours and a firm commitment from the employer. If you’re a permanent part-time employee, you will work less than 38 hours each week, which is fewer than full time employees, and you generally have more predictability than casual employees.

Another specification is that your hours of work follow an agreed pattern, and you are on a fixed-term contract or permanent employment arrangement. After seven years of ongoing service with an employer, you could be granted long service leave, depending on which state you live in.

Permanent Part-Time Entitlements

Other benefits of permanent part-time employment are that you are granted entitlements including paid sick leave and carer’s leave, and annual leave on a pro rata basis.

Permanent employees in part-time roles are also guaranteed to have either ongoing work or a contract over a fixed term, and they must receive or give a notice of termination to end their employment. You are entitled to parental leave if you have been working for the employer for 12 months.

Casual Workers

In Australia, the Fair Work Act 2009, updated by the “Closing Loopholes” legislation on August 26, 2024, specifies that a casual employee has no firm commitment to ongoing, indefinite work and receives a casual loading or specific pay rate under a fair work instrument or contract. Employers must provide casual employees with a Casual Employment Information Statement and the Fair Work Information Statement at the start of their employment. These workers typically don’t have job security or guaranteed hours, and they are offered work on an ‘as needed’ basis.

The Criteria For a Casual Worker

Casual workers are entitled to higher rates of pay (called casual loading) to compensate for job insecurity and the loss of paid leave entitlements. Following the August 26, 2024, changes, a ‘casual employee’ is defined as one who does not have a firm commitment to ongoing, indefinite work and receives a casual loading under a fair work instrument or contract.

Criteria for Casual Employment (Updated):

• You are not assured of weekly hours
• You normally work irregular hours
• You are not entitled to annual leave or sick pay
• You must receive a Casual Employment Information Statement and the Fair Work Information Statement from your employer at the start of your job

Casual Worker Rights

It’s important that casual employees know they can switch to full or part-time (permanent) employment whenever they meet new Employee Choice Pathway requirements. Under the August 26, 2024 legislation:

• Casual employees can notify their employer in writing of their intention to convert to permanent employment (full-time or part-time) if they meet the eligibility criteria.
• Employers may only refuse this request for specific, valid reasons and must provide a written response.
• Casual employees have the right to refuse shifts, as there is no obligation to accept every shift offered.
• From August 26, 2024, employees (including casuals) also have a right to refuse contact outside their working hours, unless that refusal is unreasonable.
• Employers must not use casual “sham arrangements” to avoid paying certain entitlements.
• Casual loading (usually 15–33 per cent on top of the usual hourly rate)
• Flexibility in accepting or rejecting shifts
• Casual conversion rights after 12 months of regular work
• Superannuation contributions if earning over $450 per month
• The same national employment standards that protect workplace health and safety

As a long-term casual employee, you can also:

• Apply for more flexible arrangements around your work
• Ask for parental leave

Personal and Carer’s Leave Calculation

The High Court in Australia ruled in 2020 that personal leave and carer’s leave entitlements should be calculated based on hours of work rather than days. Employees are entitled to accrue 1/26th of their ordinary hours of work per year for this leave.

This ruling aligns with changes in how leave entitlements are calculated under the Fair Work Act and ensures that both permanent and casual employees receive fair consideration of their actual hours worked.

Recent Legal Changes Affecting Both Types

In August 2020, the Australian High Court made a significant ruling that changed how paid personal or carer’s leave is calculated under the National Employment Standards.

The Court decided that rather than calculating a worker’s 10 days of personal or carer’s leave entitlements on the number of days worked, it is now calculated on hours worked. Ten days of personal leave is now calculated as 1/26th of a worker’s ordinary hours of work in one year.

• Myth: Casual employees have no rights.
  Reality: While casual employees don’t have some entitlements of permanent part-time employees or permanent full time roles, they do have rights, including casual loading, superannuation, and workplace health and safety protections.
• Myth: Part-time employees can’t claim overtime.
  Reality: Part-time workers (often referred to as time employees in certain legal contexts) can be eligible for overtime pay when working beyond their agreed hours, depending on their relevant award or agreement.
• Myth: Casual employees can’t become permanent.
  Reality: Many casual employees have the right to request conversion to permanent employment after 12 months of regular work.
• Myth: Part-time employees don’t accrue long service entitlements.
  Reality: Part-time employees do accrue long service leave, typically on a pro rata basis.
• Myth: Employers can change a part-time employee’s hours at will.
  Reality: Changes to a part-time employee’s regular hours typically require mutual agreement and may involve a formal variation of the employment contract.

Protect Your Workplace Rights

Understanding your workplace rights is crucial, but navigating the complexities of the law can be challenging. Don’t leave your entitlements to chance.

At PK Simpson, our expert lawyers have been championing employees’ rights for over 38 years. We’re here to ensure you receive entitlements such as paid sick leave, domestic violence leave, unpaid carer’s leave, and unpaid compassionate leave where applicable, whether you’re a casual employee, a time employee, or in permanent part-time or permanent full time roles.

Take the first step towards securing your workplace rights today:

1. Call us at 1300 411 596 for a free consultation
2. Book an appointment online to discuss your situation
3. Visit our website to learn more about how we can help you