There are many important distinctions between the types of employment, and it is important that the contract reflects your employees working conditions.
1. Leave Entitlements
Full-Time Employee | Casual Employee |
A full-time employee is entitled to all the NES leave entitlements. This includes annual leave, sick leave and carers leave. | Casual employees do not receive any paid leave. |
2. Working Hours
Full-Time Employee | Casual Employee |
Full-time employees generally work a maximum of 38 hours per week, plus reasonable additional hours. They can be permanent employees or on fixed-term contracts. | Casual employees do not have any guaranteed working hours. Their working hours will be unpredictable and irregular. |
3. Public Holiday
Full-Time Employee | Casual Employee |
If a full-time employee’s usual working day falls on a public holiday, they must be paid for the public holiday. If they don’t usually work on the public holiday, they are not entitled to public holiday pay. For example, on a Saturday or Sunday. | Casual employees do not get any public holiday payments. |
4. Pay
Full-Time Employee | Casual Employee |
A full-time employee’s pay is usually based on an annual salary outlined in the modern award or their employment agreement. | A casual employee's pay is based on an hourly rate of pay with a casual loading under a specific award or employment agreement. |
5. Superannuation
There are no differences in superannuation.
Full-Time Employee | Casual Employee |
Full-time employees are entitled to 11% of their ordinary earnings (does not include overtime payments). | A casual employee is entitled to 11% of the value of their ordinary time earnings. |
6. Notice Period
Full-Time Employee | Casual Employee |
A full-time employee's notice period is typically set out in a modern award or employee agreement. The notice period is usually 4 weeks but you can choose to alter this initially in your employee’s contract. A part-time employee is also entitled to written notice or payment if you wish to terminate their employment. | There is no notice period. Unless your employee’s agreement or award specifies a different notice period. |
Looking to get started? Use these tools to create an employment agreement yourself:
It is important you select the right contract to suit your business and ensure you are adhering to all the correct standards within your industry.
You can discuss this with the team on the Legal & Accounting Advice Plan, or you can seek one-off advice through our Legal Services team here
Lawpath has a dedicated workflow for hiring an employee. You can start the workflow here!