While there are similarities like all employees being entitled to superannuation, full-time and part-time employment significantly differ from casual employment, as reflected in the Fair Work Act. Knowing these differences and respective working rights is essential as a student or grad.
Full-time Employment:
Full-time employees typically work 38 hours each week, plus any reasonable overtime hours, depending on the nature of the work. The employer and the employee agree upon the actual hours. They are employed on a permanent basis or a fixed-term contract. A permanent basis means that the employees are employed permanently by the employer until either party ends the employment. A fixed-term contract means employees are hired for a specific period. However, new changes to legislation have limited the use of fixed-term contracts.
Under the Fair Work Act, full-time employees have access to leave benefits, including annual, sick and carer’s, and family and domestic violence leave. Fixed-term employees have the same entitlements as permanent employees.
Full-time employment may be rescinded for part-time or casual employment if agreed upon by the employee and employer. An employer can change employment status without the employee’s agreement if the employment contract allows this. The nature of employment cannot be changed or ended for a discriminatory reason because the employee exercised a workplace right or for another reason protected by the Fair Work Act.
Employers can cease the employment of a full-time employee by giving written notice or payment.
Part-time Employment:
Part-time employees work regular hours that are less than 38 hours each week. They can be employed on a permanent basis or a fixed-term contract. They receive the same paid leave entitlements as full-time employees but on a pro-rata basis, which means in proportion to the hours worked. However, the ten days of entitled paid family and domestic violence leave is not pro-rated.
Under full-time and part-time work, employees have the security of consistent and permanent employment. They are more likely to be employed in the long term; however, their hourly pay rate tends to be lower than that of casuals. They are also protected from unfair dismissal.
Casual Employment:
Casual employees work irregular hours without a firm advance commitment of ongoing work. Four factors determine no firm advance commitment:
- Whether the employer offers the employee work that can be accepted or declined.
- Whether the employee is offered work when the business needs them to work.
- If the employment is described as casual.
- If there is a casual pay loading or a specific pay rate for casual employees.
Casual employees are paid a casual loading, which is a higher rate of pay, or a specific pay rate for casuals to account for lack of leave entitlements. The main appeal of casual employment is that it bestows flexibility, as employees can say yes or no to shifts. This is ideal for students studying full-time. Nevertheless, casuals have limited control over the number of shifts they receive, and their employment can be ceased at any time by stopping shifts rather than terminating a contract. Furthermore, they do not receive paid days off, notice of termination or redundancy pay.
Flexible working arrangements and unpaid parental leave can be requested if the employee has been employed by the employer as a casual regularly for at least 12 months and if they reasonably expect to continue being employed by the employer regularly.
An employee ceases to be a casual employee when they become a permanent employee through casual conversion or being offered and accepting an offer of full-time or part-time employment. Alternatively, if their employment ceases.
The National Employment Standards provides casual employees access to a pathway to permanent employment, two days unpaid carer’s leave per occasion, two days compassionate leave per occasion, paid family and domestic violence and unpaid community service leave.
Dismissal:
While discrimination law protects all employees from dismissal based on gender, age, ethnicity or race, the ability to make unfair dismissal claims depends on an employee’s employment status. Full-time and part-time employees are protected from unfair dismissal after being employed for six months. Dismissal cannot be harsh, unjust or unreasonable. Typically, casual employees are not protected from unfair dismissal. Still, if they have been employed for at least six months regularly and have a reasonable expectation of continuing employment on that basis, they are protected.
When applying for and commencing new employment as a student or grad, being familiar with the rights and benefits of your type of employment is essential to protect your ability to work and receive your entitlements.
See the graduate, part-time and casual opportunities now open on GradConnection.
