Employees

An employee works under an employment contract, which may be spoken or written. Employees can be permanent full-time, permanent part-time, casual or seasonal. Each type carries different entitlements.

In common law, an employee is always an individual - not a company or partnership. Their employment is regulated by state and federal industrial laws, including any relevant award. An employee cannot control how and when work is performed, and cannot delegate it to others.

When a worker is treated as an employee

Engaging someone as a contractor does not always remove employment obligations. Some laws - including workers compensation, superannuation and certain taxation laws - treat the person as an employee, regardless of the common law definition.

See the Contractors and Working out a package sections, and the Contractor or employee fact sheet.

Incorrectly classifying an employee, or failing to meet award requirements, can lead to underpayment claims and legal action.

Permanent employees

Full-time employees work fixed weekly hours. They are entitled to annual, personal, long service and parental leave, notice of termination and the right to claim unfair dismissal.

Part-time employees work fixed weekly hours and receive the same entitlements on a pro-rata basis. If a public holiday falls on a normal working day, they must be paid for it. They are also entitled to notice of termination and may claim unfair dismissal.

Under the Pastoral Award 2020, part-time employees must be rostered for at least three hours per shift. The minimum is two hours for full-time secondary students aged 18 or under.

Casual employees

The Fair Work Act defines a casual employee clearly. A person is casual if they accept work knowing there is no firm advance commitment to ongoing, indefinite work, and they can accept or reject shifts.

If a person regularly works set hours - particularly hours similar to permanent staff - the role may not be casual, whatever the contract says. Employees working predictable weekly hours should be engaged as part-time, with pro-rata entitlements.

Once engaged as a casual, an employee remains casual until they:

• convert to permanent employment,
• are offered and accept full-time or part-time work, or
• their employment ends.

Casual entitlements under the Pastoral Award 2020 include:

• Payment at the hourly rate plus 25%, to compensate for the lack of leave and job security (clause 11.5).
• A minimum payment of three hours per shift, or two hours for full-time secondary students aged 18 or under (clause 11.7).
• No usual entitlement to notice of termination.

Casual employees working on a regular and systematic basis, with a reasonable expectation of continuing work, may be able to claim unfair dismissal once they meet the minimum employment period.

For detail and examples, see the Fair Work Ombudsman casual employment changes page.

Casual employment information statement

Employers must give the Casual Employment Information Statement to every new casual employee.

• Small businesses (fewer than 15 employees) must also give it to existing casuals once they reach 12 months of employment.
• Other businesses must provide it at six months, at 12 months, and every 12 months after that.

Converting from casual to permanent employment

In some circumstances, casual employees can ask to convert to permanent employment. Different rules apply to small businesses (fewer than 15 employees) and larger businesses.

An employee is eligible if they:

• have been employed for at least six months, or 12 months in a small business, and
• believe they no longer meet the legal definition of a casual employee.

Employer obligations:

• The employer must consult the employee before deciding.
• The employer can accept or refuse the request, but any refusal must be in writing with reasons.

Valid reasons for refusal include:

• The employee still meets the definition of a casual.
• Operational grounds - for example, significant changes to how work is organised, major impacts on operations, or substantial changes needed to meet legal or award requirements.
• A breach of a recruitment or selection process required by law.

See becoming a permanent employee (Fair Work Ombudsman) for more.

Records

If the employer agrees to convert the employee, both parties must record in writing whether the employee is full-time or part-time.

For part-time employees, they must agree and record the regular pattern of work - the hours each day, the days of the week, and the actual start and finish times - as set out in clause 10.2 of the Pastoral Award 2020.

Seasonal employees

Seasonal employees are engaged for a specified season, with no expectation of ongoing work once the season ends. The season must be clearly identifiable - for example by weather, the availability of a product or activity, or events such as calving and harvesting.

Under federal industrial laws, seasonal employees are not entitled to notice of termination. If they are dismissed at the end of the season, they cannot claim unfair dismissal.

Employing children

Laws on employing children vary by state. They cover the minimum working age, the type of work allowed and the permitted hours. See the Federal and state industrial laws section.

The Fair Work Act, the National Employment Standards and the Pastoral Award 2020 also apply. The award provides junior rates of pay, set as a proportion of the adult rate.

The National Training Wage Schedule sits in Schedule E of the Miscellaneous Award 2020, which includes current trainee pay rates. For junior and trainee rates, see the Pay rates section.

Hiring people from overseas

Employers hiring people who are not Australian citizens or permanent residents must confirm the person holds a valid visa with work rights.

For visa types, work-rights checks and the Dairy Industry Labour Agreement, see Overseas Workers.