Learn more about casual employees and what entitlements they receive.

On this page:

• A casual employee
• How casual is different to full-time or part-time employment
• What casual employees get
• Changing to full-time or part-time employment
• Sham arrangements
• Tools and resources
• Related information

A casual employee

A person is a casual employee if, when they start employment:

• the employment relationship has no firm advance commitment to ongoing work, taking into account a number of factors, and
• they’re entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.

Source reference: Fair Work Act 2009 s.15A Meaning of casual employee

Firm advance commitment

Whether there is a firm advance commitment needs to be assessed on:

• the real substance, practical reality and true nature of the employment relationship
• several other factors.

The other factors that must be considered include whether:

• the employer can offer or not offer work to the employee (and whether this is happening)
• the employee can accept or reject work (and whether this is happening)
• it's reasonably likely there will be future work available of the kind the employee usually performs in the employer’s business, based on the nature of the business
• there are full-time or part-time employees performing the same kind of work in the employer’s business as the work the employee usually performs
• the employee has a regular pattern of work even if it changes over time due to, for example, reasonable absences because of illness, injury or other leave.

The above isn't a full list and other factors may apply.

For this assessment, not all factors need to be satisfied and a single factor won’t determine whether a person can be considered a casual or not.

For example, a regular pattern of work on its own doesn’t indicate that an employee has a firm advance commitment to ongoing work. An employee who has a regular pattern of work may still be a casual employee if there is no firm advance commitment to ongoing work.

When assessing whether there is a firm advance commitment, you can look at:

• the contract of employment, or
• the contract as well as any mutual understanding or expectation between the employer and employee that isn’t part of the contract.

The mutual understanding or expectation can be worked out from how the contract is performed, or what the employer and employee do after entering into the contract.

Fixed term contracts

Casual employees can usually be hired on fixed term contracts

However, a casual can’t be engaged on a fixed term contract if all of the following apply to them:

• they’re a member of the academic or teaching staff of a higher education institution
• they’re covered by the:
  • Higher Education Academic Staff Award, or
  • Higher Education General Staff Award
• they’re not a state public sector employee.

The exception doesn’t apply to casual employees employed on a fixed term contract before 26 August 2024. Read more about casual employment changes on our Closing Loopholes page.

How casual is different to full-time or part-time employment

Full-time and part-time employees have a firm advance commitment to ongoing employment. They can usually expect to work regular hours each week. They are also entitled to paid leave and must give or receive notice to end the employment.

Having a regular pattern of work doesn’t mean an employee is permanent (full-time or part-time).

For more information about permanent employment, including hours and entitlements, go to:

• Full-time employees
• Part-time employees.

What casual employees get

Under the National Employment Standards (NES), casual employees get:

• access to a pathway to become a permanent employee
• 2 days unpaid carer's leave per occasion
• 2 days unpaid compassionate leave per occasion
• 10 days paid family and domestic violence leave per year
• unpaid community service leave.

Casual employees can request flexible working arrangements and take unpaid parental leave if they:

• have been employed by their employer as a casual employee on a regular and systematic basis over at least 12 months
• reasonably expect to continue being employed by the employer on a regular and systematic basis.

Casual employees are also paid:

• a casual loading (a higher pay rate for being a casual employee), or
• a specific pay rate for being a casual employee.

Check your award or agreement, or the national minimum wage order for award and agreement free employees, for minimum pay rates for casual employees.

You can use our Pay and Conditions Tool to find minimum award rates for casuals. You can find enterprise agreements on the Fair Work Commission website.

Casuals don't get most types of paid leave, notice of termination or redundancy pay, even if they work regularly for a long time.

In some states and territories long serving casuals are eligible for long service leave.

Changing to full-time or part-time employment

Employees who start as a casual, will stay casual until their employment status changes either through:

• accepting an alternative employment offer and starting work on that basis, or
• changing to permanent under the rules in the NES, their award or agreement, or
• a Fair Work Commission order.

A casual employee can change to full-time or part-time employment at any time if the employer and employee both agree to it.

Under the NES, casual employees have the right to access a pathway to become a permanent full-time or part-time employee, in some circumstances. For more information, go to Becoming a permanent employee.

Source reference: Fair Work Act 2009 s.66A-66M casual conversion

Sham arrangements

Sham arrangements are sometimes used by employers to avoid paying certain entitlements to employees. There are protections in place for employees who are engaged as casual employees under a sham arrangement.

It’s illegal for an employer to:

• knowingly say something false to convince a current or former full-time or part-time employee to enter into a contract for casual employment to do the same work (or mostly the same work), or
• dismiss or threaten to dismiss an employee to engage them as a casual employee to do the same work (or mostly the same work).

Courts can impose penalties against businesses or individuals for sham arrangements. The maximum penalties for each contravention are:

• $93,900 for individuals
• $469,500 for businesses.

What to do next if you think you’re in a sham casual employment arrangement

We can help employees who think they’ve been incorrectly engaged as a casual employee, including if they think they’re in a sham casual employment arrangement. You can call us to speak to an adviser between 8am and 5:30 pm, Monday to Friday. Go to Contact us.

Tools and resources

• Casual employee definition before 26 August 2024 Library article
• Pay and Conditions Tool
• Find an enterprise agreement – Fair Work Commission

Related information

• Becoming a permanent employee
• Casual Employment Information Statement
• Employment conditions
• Types of employees