Classifying the type of employment incorrectly can have serious consequences which can be costly and disruptive to your Parish. In some circumstances an employer may be ordered by Fair Work Australia to back pay any loadings or to accrue retrospectively any annual leave, long service leave and sick leave and any other entitlements to employees. In other cases workers may be entitled to other provisions in the Fair Work Act such as access to unfair dismissal protections.

Types of Employment

The most common employment arrangements are as follows:

• Full-time
• Part-time
• Casual

In general the three employment types have the following characteristics:

Full Time Employee

An employee engaged to work on a regular on-going basis, generally for 38 hours per week. (The National Employment Standards set the maximum weekly hours of work at 38 hours per week for a full-time employee covered by the Fair Work Act; for those in Western Australia under state systems, the relevant award should be checked.) Full-time employees are entitled to a range of entitlements such as annual leave, superannuation, sick leave etc.

Part Time Employee

An employee engaged to work on a regular ongoing basis who works fixed hours that are less than the hours of a full-time employee. Part time employees enjoy the same benefits as full-timers but on a pro-rata basis (Note: some Awards place restrictions on the number of hours that part-time employees can work; e.g. The Clerks – Private Sector Award states that a parttime employee must be engaged for a minimum of three consecutive hours).

Casual Employee

An employee engaged to work only when there is work available; generally the engagement is on an hourly or daily basis. Casual employees are not eligible for sick or annual leave (casual rates incorporate a loading to compensate). Further, by definition, casuals are under no obligation to accept an offer of work, nor have expectation of future work, unless the engagement has been identified as being for a fixed period (e.g. leave replacement) It is appropriate to offer casual employment when the employer requires work to be done on an intermittent or unpredictable basis.

If the work or position is subject to an award or industrial agreement, the award or agreement may specify circumstances in which an employee is classified as “casual”. Note: It is especially important to check any relevant awards for restrictions on the engagement of casual and part-time employees (e.g. The Clerks – Private Sector Award states a minimum payment for three hours of work, however, there is no such restriction stated in the Miscellaneous Award). There are few restrictions where an employee is not covered by an award.

Long Term Casuals

Some casual workers can be engaged in certain situations on a long term basis. e.g. the receptionist who always comes in to relieve for sick leave and holidays. These employees must be engaged for several periods of employment over twelve months to qualify as “long term casuals”. Under the Fair Work Act, casuals engaged over several periods within a six month period have access to unfair dismissal provisions. Long term casuals also have access to unpaid maternity leave and unpaid carer’s leave

How to determine the type of Employment

Here are a few simple steps to assist you to determine the type of employment. Answer the following questions for each individual employee:

• What are the number of hours worked each week?
• Is there a regular pattern of employment (e.g. same days/hours each week)? If the hours of work are less than 38 per week and there is a regular pattern of work then the employee may be a part-time employee
• Is there a roster system which is published in advance?
• Do the employer and employee both expect the employment to continue? If “yes” then the employee is either a full-time or a part-time employee.
• Is the employee required to give notice prior to taking leave or being absent?
• Does the employee have a consistent start and finish time?
• Is the employee entitled to take annual leave and sick leave? If the answer is “yes” then the employee is either a full-time or a part time employee.
• The rate at which the employee is paid. If the employee is paid a loading but is not entitled to take annual leave or sick leave then the employee is a casual.

Documentation

When you have determined the type of employment, document this in the letter of offer to the employee stating clearly the days and times when the work is required to be carried out. The Office for Employment Relations can provide you templates for documents on this and other employment related matters.

Please visit our website: www.employmentrelations.org.au or contact Jane Bashiruddin at the Office for Employment Relations. Phone: (03) 9934 3355