In today’s competitive job market, small business owners are thinking outside the box to attract and retain the talent we need. One strategy might be hiring more part-time or casual workers. In fact, at FixHR, we have just hired our second casual staff member. One does overflow HR for us from time to time, and the new one will be helping with admin as she’s available. But what’s the difference between casual employees and part-time staff? We thought this was a good time to cover this off.
While the rights of all workers are protected by law, their benefits and conditions depend on how they’re employed. This is pure HR, and what we are good at! Sit back and enjoy the read.
Part-Time vs. Casual: What’s the Difference?
When you hire a part-time staff member, they’re either a permanent or fixed-term employee, but they don’t work full-time hours. On the other hand, believe it or not, a casual employee isn’t defined in employment legislation. Typically, ‘casual’ refers to an employee with no guaranteed hours, no regular work pattern, and no ongoing expectation of continuity of employment.
Casual employees work on an ‘as and when requested’ basis. This means they only work when they accept the work offered to them. As an employer, you’re not required to provide work to casuals, and they’re not required to accept it.
Hours and Pay
Part-time employees work a set number of hours each week, providing consistency. Casual employees, however, have variable hours, offering flexibility to employers, especially during busy periods.
Part-time employees earn a consistent wage based on their ordinary hours and are usually automatically enrolled in a KiwiSaver scheme. Casual employees are paid hourly and are not automatically enrolled in KiwiSaver unless they’ve worked continuously for 28 days or opt-in.
There are no legal requirements around shift lengths for casuals and part-timers, except when health and safety considerations apply. Please note, you have the same health and safety obligations for casuals and part-time workers as you do for full-time employees.
Leave Entitlements
One key difference between part-timers and casuals is leave entitlements. Part-time workers are entitled to four weeks’ annual leave after 12 months of continuous service. Casuals, however, are typically paid holiday pay at a rate of 8% of their gross earnings, as their work is often intermittent or irregular.
Sick leave, bereavement leave, and family violence leave are entitlements for both part-time and casuals if a worker has completed six months of continuous service or works a certain pattern of hours in the preceding six months. If you need more detail around this, feel free to give us a call.
Dismissal Procedures
You can dismiss a worker for good reason, such as performance issues or serious misconduct, but you must follow the proper process. Dismissing a part-time employee or a casual employee who has accepted a work assignment is the same as dismissing a full-time employee, so don’t be lulled into a false sense of security around this. The action must be one that a fair and reasonable employer could have taken in all the circumstances, and we like to try and make sure we can evidence this for our clients.
However, for casual employees not in the middle of a work assignment, there’s no employment relationship afoot, so you wouldn’t need to undertake a dismissal process. Instead, you could simply choose not to offer further work. Removing anyone’s right to work is a serious action, so we usually proceed cautiously, but it is certainly less involved to move a casual off the books.
Other Legal Obligations
We still meet people who think a casual staff member doesn’t require an employment agreement or job description. Not correct! You must provide all workers with a written employment agreement, including terms and conditions that meet or exceed minimum legal rights. What’s more, you can’t change any part of the agreement without the employee’s consent.
Employers can’t require casuals to accept offers of work. If a casual is required to accept work without guaranteed hours, this would constitute a ‘zero-hour contract’, which has been unlawful in New Zealand since 2016.
You’re also required to provide all workers with appropriate training and information to work safely and ensure everyone is treated fairly and with respect. If an employee feels unlawfully discriminated against, regardless of their employment status, they can bring a claim before the Employment Relations Authority or make a complaint to the Human Rights Commission.
Final Thoughts
Hiring part-time or casual workers can add valuable skills to your team and bring greater flexibility to your staffing needs. Understanding the differences between these employment types helps you meet your obligations and source the workers you need in this current market.
If you have any questions or need further assistance, our team at FixHR is here to help. We know this important foundational material inside and out, and are available during office hours to support you. Don’t hesitate to reach out to us for expert advice and guidance.
