Is my employee a permanent employee, fixed term employee or casual employee?

Did you know that different types of employees have different entitlements? Do you know how to correctly classify your employees? If not, you might want to read on, as this article details the different employment classifications and their respective entitlements.

38 hours: Full-time permanent employee

Will your employee work an average of 38 hours per week? If yes, they are most likely a full-time employee. They have entitlements under the National Employment Standards including annual leave and sick leave.

A permanent employee has ongoing employment and the term of the employment agreement will end when it is terminated by either you or your employee.

Fixed term

A fixed term employee is employed for a specific period of time, for example a 6 or 12 month term. The fixed-term employment agreement ends on the termination date, or can be extended.

Will your employee work less than 38 hours per week?

If yes, you need to decide if they are a part-time or casual employee.

A part-time employee is a permanent employee who works less than 38 hours per week. A part-time employee usually works regular hours each week, for example on Mondays and Thursdays. A part-time employee has ongoing employment and the term will end when the employment agreement is terminated by either you or your employee.

A part-time employee has the same entitlements under the National Employment Standards as a full-time employee (on a pro rata basis).

Ad hoc hours: Casual employee entitlements

A casual employee has no guaranteed or regular set of hours that they work. A casual employee does not receive all entitlements under the National Employment Standards, for example they do not receive sick leave or annual leave.

What do I do next?

Once you have determined what type of employee you are hiring, you need the correct employment agreement. A permanent employee agreement sets out the National Employment Standard entitlements including sick leave and annual leave entitlements. A casual employment agreement does not include sick leave and annual leave entitlements.

Conclusion

Would you like help with deciding what type of employee you have hired? Would you like a straightforward but comprehensive employment agreement that complies with the law and protects your business?

LegalVision can help you. Please call our office on 1300 544 755 and our Client Care team will happily provide you with an obligation-free consultation and a fixed-fee quote to help you sort out your superannuation obligations. Our employment lawyers are ready to assist!