Casual employees¶

A casual employee is someone who works for you without a firm advance commitment to ongoing work. In other words, there is no promise of set, continuing hours. Casual employees usually get a casual loading — extra pay — instead of paid leave.

Casual is one of the main employment types in Australia. It suits work that comes and goes, rather than a steady ongoing role.

In one line

A casual employee has no firm advance commitment to ongoing work and usually gets a casual loading instead of paid leave.

Why this matters¶

The employment type you choose shapes what a person is entitled to and how you pay them. Casual is different from full-time and part-time, so getting it right matters. There are also rules about the information you must give casuals and pathways for them to become permanent.

What you will learn¶

What makes an employee casual
What casual loading is and how it differs from paid leave
The Casual Employment Information Statement and conversion pathways

Understanding the concept¶

Fair Work describes someone as a casual employee when, at the start of the job, there is no firm advance commitment to ongoing work, and they are entitled to a casual loading or a specific casual pay rate under an award, registered agreement or employment contract. An employee can have a regular pattern of work and still be casual if there is no firm advance commitment to ongoing work.

Because casuals usually get a casual loading instead of paid leave, they typically do not build up paid annual leave the way full-time and part-time employees do. The loading is extra pay that helps make up for that. The exact loading and pay rates come from the award, registered agreement or contract that applies, so check those and Fair Work rather than assuming a set figure.

Two important extras apply to casuals:

Casual Employment Information Statement (CEIS). Employers must give casual employees this statement. Fair Work provides it. It explains a casual employee's conditions.
Becoming permanent. There are pathways for eligible casuals to change to permanent (full-time or part-time) employment, including an employee choice pathway where an eligible casual can notify their employer in writing that they want to change. Eligibility rules and timeframes apply, so check Fair Work.

For accountants & bookkeepers

The casual definition looks at the real substance and true nature of the relationship, not just the contract wording. Casual loading percentages and the eligibility timeframes for the employee choice pathway are set by law and by the applicable award or agreement — confirm the current details with Fair Work rather than stating a fixed rate.

Example¶

Maria runs a cafe that gets busy on weekends. She hires Tom as a casual to work when she needs extra help, with no promise of set weekly hours. Tom gets a casual loading in his pay. Maria gives Tom the Casual Employment Information Statement when he starts. The exact loading comes from the award that covers the cafe.

Common mistakes¶

Treating a casual as permanent just because they work a regular pattern — the key test is whether there is a firm advance commitment to ongoing work.
Forgetting to give the Casual Employment Information Statement.
Assuming a casual loading figure instead of checking the award or agreement.

How this works in myaccountant¶

In the app — when you set up an employee, you record their employment type or basis, such as casual. That choice flows through to your pay runs and to your STP report to the ATO.

Key points¶

A casual employee has no firm advance commitment to ongoing work.
Casuals usually get a casual loading instead of paid leave.
A regular pattern of work does not by itself make someone permanent.
Employers must give casuals the Casual Employment Information Statement.
Eligible casuals have pathways to become permanent, including employee choice.
Check your award and Fair Work for loading rates and eligibility rules.

Learn next¶

General information only — not tax, super or financial advice.

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