Casual employee

Casual employment involves a work arrangement where there is no firm advance commitment to continuing and indefinite work, and the employee is paid a casual loading or casual rate of pay. Their working hours often vary from week to week. Casual employees typically do not receive the same entitlements as permanent employees, such as sick leave or annual leave, but they receive a casual loading to compensate.

How the casual employee test works

Since 26 August 2024, section 15A of the Fair Work Act looks at the real substance and practical reality of the relationship, not just the written contract. Signs of a firm advance commitment include a real lack of choice about offering or accepting work, permanent staff doing the same work, work that is reasonably likely to continue, and a regular pattern of work. A regular pattern of hours on its own does not make someone permanent. For example, a café worker who has worked the same three shifts every week for a year may still be casual, but can use the employee choice pathway to ask to become permanent.

Read our guide to casual loading and see long term casuals.