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Minimum hours for casual employees: what every casual worker needs to know about hours of work and casual work types

Written by
Tanisha
Published on
July 12, 2022

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Understanding minimum hours for casual employees is essential for every Australian business. Casual employment offers flexibility but comes with rules about shift lengths and pay. Employers must follow these rules to stay fair and legal under the Fair Work Act. This guide will explain minimum hours for casual employees and how to manage shifts correctly.[ez-toc]

A quick guide to minimum hours for casual employees

Minimum hours for casual employees vary by industry and award, often set at 2 to 3 hours per shift. These rules help ensure fair pay and compliance with the Fair Work Act. Employers must track shifts carefully to meet legal standards and manage casual workers effectively.

Understanding minimum hours for casual workers in Australia

Casual employment is a common type of work in Australia. A casual employee works without a firm advance commitment to ongoing work or regular hours. They are hired on a flexible basis and are paid a casual loading, usually 25%, instead of getting paid leave. This type of job suits industries like retail, hospitality and healthcare where demand can change quickly.Employers must understand the minimum number of hours per shift casuals are required to work. Most casuals must be offered at least 3 hours of work per shift, depending on the modern award that applies. Not meeting these rules can lead to disputes, fines or claims through the Fair Work Ombudsman.Understanding casual rules helps employers:

  • Avoid underpayment and legal risks
  • Keep rosters fair and consistent
  • Support the rights of casuals
  • Follow the Fair Work Act and National Employment Standards

Managing casuals also includes tracking the number of hours worked, meeting maximum weekly hours (usually 38 hours plus reasonable extra hours) and knowing when a casual might shift to ongoing employment.This is where Business Kitz helps. The platform:

  • Generates legally compliant employment contract templates
  • Stores signed agreements
  • Helps manage rights and responsibilities under the law

Business Kitz supports both small and large teams who rely on casual staff. By using tools that ensure compliance and clear records, employers stay focused on business while staying on top of their employment relationship.

Diverse casual employees and managers discussing shift schedules in a bright, minimalist office, focusing on minimum shift hours.

What is a casual employee and how are they different from other types of workers?

A casual employee is someone who works without a firm advance commitment to ongoing work. Under the Fair Work Act, casuals usually get their shifts on short notice. They don’t have set hours or a long-term promise of work. Businesses often hire casuals when workloads change often or extra help is needed.Casuals differ from other types of employment like part-time or full-time roles. Unlike other workers, casuals don’t get paid sick leave, annual leave or public holiday pay. Instead, they are entitled to a casual loading—usually 25%—on top of their base rate. This loading covers the lack of benefits and job security.Here’s a simple look at how casuals compare to part-time and full-time employees:FeatureCasual employeePart-time employeeFull-time employeeSet hoursNoYesYesLeave entitlementsNo (gets casual loading)YesYesJob securityNoYesYesNotice of terminationNot required (varies)RequiredRequiredHourly rate of payHigher (includes loading)Base rateBase rateMinimum employment periodAppliesAppliesAppliesThis definition of a casual helps employers make better hiring choices. It also protects workers’ rights at work by making sure they know what they’re signing up for.If you hire casuals, tools like Business Kitz ensure your employment contract includes the correct terms like casual loading of 25% and the lack of leave entitlements. This reduces errors and keeps your business compliant with the Fair Work Commission.

Understanding minimum shift hours for casual workers

Casual workers in Australia are protected by award rules that set minimum hours per shift. These rules stop employers from offering very short shifts that do not give fair pay for time and effort. The Fair Work Commission sets these rules through modern awards.

Standard minimum shift durations

Most modern awards require casuals to work at least two to three hours per shift. This is the minimum number of hours a casual worker must be paid for, even if they work less.For example:

  • A retail casual may be entitled to at least 3 hours of work per shift.
  • A casual in aged care may only need to work 2 hours per shift under their award.

This helps protect workers from being rostered on for short, inconvenient shifts that offer little pay. It also ensures that employers meet their obligations under the Fair Work Act.

What can affect minimum shift lengths?

The number of hours per shift can change depending on a few things:

  • Industry: Retail and hospitality usually have different shift lengths.
  • Age: Some school-aged casual employees may legally work shorter shifts.
  • Enterprise agreements: These may set different rules than modern awards.

Minimum shift examples by award

IndustryMinimum shift hoursNotesRetail3 hoursApplies under the General Retail AwardHospitality2 hoursMay vary based on casual shifts and locationAged Care2 hoursSet under the Aged Care AwardFast Food3 hoursApplies to casuals of all agesClerical/Office3 hoursUnder the Clerks AwardEmployers must check the right award before rostering. A mistake can lead to non-compliance with Fair Work rules or underpayments.Business Kitz helps track award conditions across different jobs. You can build custom shift agreements and log hours worked through digital tools that keep your business aligned with the National Employment Standards.

Professional woman reviewing a payslip on a tablet in a clean workspace, highlighting casual loading and pay entitlements.

Why knowing minimum hours matters for compliance and business operations

Minimum shift lengths for casual workers are not just guidelines—they are legal requirements. If you don’t meet these rules, your business could face serious issues.

The risks of getting it wrong

Not giving casual staff the right number of hours can lead to:

  • Fair Work disputesCasual employees can raise concerns with the Fair Work Ombudsman. This may lead to audits or formal investigations.
  • Fines and back payEmployers who underpay staff or fail to follow modern award rules may face penalties or have to pay owed wages.
  • Damaged reputationNon-compliance with rights at work laws can hurt your brand and reduce staff trust.

These risks grow if the business cannot show clear proof of hours worked or correct pay. Under the Fair Work Act, employers must keep records of hours, pay and employment contracts. This includes any casual loading paid in place of leave entitlements.

Accurate records protect both parties

To meet the National Employment Standards, you must document:

  • Agreed pattern of work
  • Hourly rate of pay including any minimum casual loading
  • Actual hours of work completed
  • Compliance with minimum shift lengths

Having a signed employment contract helps show that both sides understand the terms.

Tools to support your compliance

Business Kitz offers tools that help you stay compliant with ease:

  • Customisable employment agreement templates for all roles
  • Shift planning and working hours tracking
  • Real-time digital records for payroll and audits
  • Secure eSigning to confirm contracts and shifts

With these tools, you can avoid costly mistakes and stay aligned with all casual work regulations.

The role of casual loading in pay and entitlements

Casual loading is an extra payment given to casual employees. It usually adds 25% on top of the base hourly rate. This payment balances out the lack of some entitlements that casual workers miss out on compared to permanent staff.

What casual loading covers

Casual loading compensates for:

  • No paid leaveCasual employees don’t get paid annual leave, sick leave or public holidays.
  • No redundancy payCasual workers are not entitled to redundancy payments if their job ends.
  • Irregular hoursCasual shifts can be unpredictable. The loading helps offset this uncertainty.

Why casual loading matters

The extra pay ensures casual employees receive fair compensation for their flexible and less secure work arrangements. This also helps businesses comply with the Fair Work Act and relevant modern awards.

Sample pay comparison

Pay typeBase hourly rateCasual loading %Total hourly ratePart-time or full-time$25N/A$25Casual (with loading)$2525%$31.25This means a casual employee earning $25 per hour receives $31.25 per hour after including casual loading.

Tools to make it easy

Business Kitz employment contracts automatically include clauses essential for your compliance. Using Business Kitz saves time and reduces errors when preparing pay agreements for casual workers. It also helps businesses stay compliant with pay laws and employee rights and responsibilities. Try it for free here.

Diverse team collaborating in a modern office using digital tools to schedule and manage casual shifts efficiently.

How weekly hours and casual shifts affect classification

Casual employees usually do not have guaranteed weekly hours. Their hours can change week to week depending on business needs and availability. However, the pattern of hours worked over time can affect how casual workers are classified.

No guaranteed weekly hours

Casual work offers flexibility for both the employer and the employee. Unlike part-time or full-time staff, casuals do not have set hours each week. They accept shifts as they come, with no promise of ongoing or regular hours.

When patterns matter

If a casual employee works on a regular and systematic basis, it may indicate ongoing employment. For example, if a casual worker gets scheduled the same hours every week for months, the Fair Work Commission may consider them a regular casual employee. This status can affect their employment rights and obligations.Repeated casual shifts could lead to:

  • Entitlement to request conversion to permanent employment
  • Increased job security and rights under the Fair Work Act
  • Potential changes in pay and leave entitlements

When casual roles resemble permanent employment

Working on a regular and systematic basis means a casual employee has ongoing shifts that follow a predictable pattern. This could be the same days or hours each week over several months. When casual work becomes regular, it can start to look like permanent employment.

What is a regular and systematic basis?

A casual employee who works consistently every week or on an agreed pattern of work shows signs of ongoing employment. This could mean:

  • Set hours each week
  • Predictable days or shifts
  • Long-term engagement without breaks

The Fair Work Act recognises this pattern. It gives casual employees the right to request conversion to a part-time or full-time role if they meet certain criteria.

Fair Work casual conversion rules

Under Fair Work rules, casuals can ask to convert after working:

  • At least 12 months with the same employer
  • For the last 6 months on a regular and systematic basis

Employers must consider the request and can refuse only on reasonable business grounds.

Reasonable expectation of ongoing work

When a casual employee expects continuing and indefinite work, they may gain more rights. This includes stronger job security and possible entitlements like paid leave.

Example: Sarah RealEstatePro

Sarah hires casual admin staff who work the same 30 hours each week for over 8 months. Using Business Kitz, she tracks their hours and sends conversion offers when due. This process keeps her compliant and her staff informed.

Importance of formal review and records

Employers should regularly review casual work patterns. Keeping clear records helps decide if a casual employee qualifies for conversion. Digital tools like Business Kitz simplify this with automated reminders and contract management. This avoids disputes and supports good workplace relations.

Employee rights: from regular casual status to termination and dismissal

A regular casual employee works consistent hours over time. Their status brings more workplace rights compared to irregular casuals. As their connection with the employer grows, the law offers them stronger protections.

Who is a regular casual employee?

A regular casual employee works on a regular and systematic basis. They usually have an agreed pattern of work and ongoing shifts. Over time, this gives them a reasonable expectation of continuing employment.

Increased protections for regular casual employees

Regular casual employees can access rights not usually given to casual workers. These include:

  • Eligibility for unfair dismissal claims after 6 months of employment
  • Clear terms around contract termination
  • More clarity on notice periods and redundancy rights, depending on their work pattern

The Fair Work Act recognises these protections to reduce casual job insecurity and unfair treatment.

Understanding contract termination

Unlike casuals with sporadic shifts, regular casual employees have expectations about their job stability. Employers must follow fair processes when ending their contracts. This includes providing proper notice and valid reasons for dismissal.

Reasonable expectation of continuing employment

This legal concept means employees expect their job to continue based on past patterns. Courts and tribunals look at work regularity and employer communications when assessing disputes. Regular casual employees often qualify for this protection.

Understanding maximum weekly hours under employment law

Knowing the maximum weekly hours is vital for employers and casual employees. The National Employment Standards (NES) set clear limits to protect worker health and wellbeing.

What are maximum weekly hours?

Under the NES, most employees work up to 38 hours per week. They can also do “reasonable additional hours” if needed. This rule applies to full-time and part-time employees.

How does this apply to casual employees?

Casual employees do not have guaranteed hours each week. Their hours depend on business needs and shift availability. However, the maximum working hours still apply. Employers must ensure casuals do not work excessive hours that risk health or break laws.

When do long shifts become a risk?

Even casual workers can face issues if they work:

  • Multiple long shifts in a row
  • More than 38 hours plus reasonable extra hours weekly
  • Hours that affect safety or lead to fatigue

For example, a casual worker doing four 10-hour shifts in a week exceeds 38 hours. This might require rest breaks or a review of workload.

Best practices for scheduling and managing casual shifts

Managing casual shifts well helps keep your business running smoothly. It also supports casual employees by respecting their time and rights. Here are some clear tips for scheduling and managing casual shifts.

Tips for effective casual shift management

  • Use shift planning software: Digital tools help organise rosters. They reduce errors and make it easy to see who is working when. This also helps manage the minimum number of hours per shift.
  • Confirm shifts in writing: Always confirm shift details with casual workers. Send emails or messages that state the start and finish times. This avoids confusion and ensures clear communication.
  • Avoid back-to-back long shifts without breaks: Schedule shifts to include enough rest between work periods. Long shifts without proper breaks risk fatigue and may breach workplace laws.
  • Keep a clear record of hours worked: Track shifts carefully to avoid exceeding maximum weekly hours or breaching modern award rules.

FAQ about minimum hours for casual employees

Are casual employees entitled to long service leave?

Yes, casual employees may be entitled to long service leave, depending on the state or territory rules in Australia and their continuing connection to the employer. While casual workers don’t get the same leave as full-time or part-time employment, many modern awards and agreements cover long service leave on a pro-rata basis for casuals working on a casual basis over time.

How does the minimum wage affect casual employees?

Casual employees receive a national minimum wage or higher depending on their modern award or enterprise agreement. They are generally entitled to a casual loading of 25 per cent to compensate for lack of paid leave and job security. This casual loading means casual employees get a higher hourly rate than part-time and casual workers without loading. The fair work information statement helps explain these rights and entitlements clearly.

Do casual employees have set hours like part-time workers?

Casual employees do not have guaranteed hours in a week like part-time or full-time workers. Their hours of work vary and depend on the employer’s needs. However, casuals working regular hours may be entitled to certain rights similar to part-time and casual employment, including casual loading. The ordinary hours of work for casuals can vary widely but must comply with awards and the national minimum wage.

What is casual loading and why do casuals get it?

Casual loading is an extra 25 per cent added to the hourly rate of casual employees. This payment compensates for no paid leave, no redundancy pay, and the uncertain nature of casual work. Employees entitled to a casual loading benefit from a higher hourly rate, which balances out some of the downsides of casual employment.

Can casual workers expect ongoing employment?

Casual employment is generally irregular and without a guaranteed pattern of hours in a week. However, casual workers who work regular and systematic hours may gain rights related to ongoing employment. The fair work information statement outlines these rights and the difference between casual work and ongoing part-time and casual roles.

Managing casual employees with confidence

Knowing award-based minimums helps you stay fair and legal. Monitoring shift patterns keeps your casual employment smooth and clear. Documenting everything makes your business ready for any questions.Business Kitz makes casual employee management easy. It helps you create contracts fast. It offers eSigning for quick agreements. It stores records securely to keep you compliant.Simplify your casual employee management with Business Kitz—start today.

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