With Christmas soon approaching, the hiring of Christmas casuals is well underway for employers who experience an increase in trade during the festive season.
As a reminder, the obligations for Christmas casuals are the same as those of any casual employee under the Fair Work Act and employers must understand their payroll obligations when hiring ‘Christmas casuals’.
What is a ‘Casual’ Employee?
A person is a casual employee if they accept an offer for a job from an employer knowing that there is no firm advance commitment to ongoing work with an agreed pattern of work.
For example, if an employee is employed as a casual, and their roster changes each week to suit their employer’s needs, and they can refuse or swap shifts, that could mean they are casual.
Specifically, under the Fair Work Act, a person is a casual employee if:
- they are offered a job
- the offer does not include a firm advance commitment that the work will continue indefinitely with an agreed pattern of work
- they accept the offer knowing that there is no firm advance commitment and become an employee.
What entitlements do casual employees generally get?
Under the 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
- paid family and domestic violence leave
- unpaid community service leave.
Under awards or EBAs, 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.
Each award and agreement may have different requirements as to how much more employers need to pay their casual employees.
Importantly, make sure you know which awards and agreements apply to your casuals!
Employers can also find the minimum pay rates, penalties and allowances that apply using the Fair Work Pay and Conditions Tool or the Fair Work Pay Guides:
What about Superannuation for casuals?
Casuals are entitled to superannuation, just like part-time and full time employees. Under the current superannuation guarantee laws, employers need to pay super for employees at the current minimum rate of 11% on OTE, regardless of how much they have earned.
You need to offer your eligible employees, a choice of super fund and pay into their chosen account.
- Most employees are eligible to choose what fund their super goes into. They can choose a super account they already have or choose the employer default fund.
- If your employee has chosen a super fund, you can pay super contributions to their chosen fund. If your employee does not choose a super fund or nominate your default fund, in most circumstances you need to request a stapled super fund from the ATO.
Employers should also be mindful of other eligibility requirements for super as well, particularly if you hire workers who are under 18 years old.
- You must pay super guarantee on payments you make to an employee under 18 years old if they work for you more than 30 hours in any week, regardless of how much you pay them.
- These workers still need to work more than 30 hours in a week to be eligible for super.
Don’t forget pay slips!
Employers need to give employees a pay slip within 1 working day of paying their wages.
As a reminder!
Employers have to give every new casual employee a Casual Employment Information Statement (the CEIS) before or as soon as possible after they start their new job.
Employers also must give every new casual employee a copy of the Fair Work Information Statement (the FWIS) at the same time.
To download the Casual Employment Information Statement, click the link below:
To download the Fair Work Information Statement, click the link below:The Fair Work Information Statement (FWIS)