Employment types¶

When you hire someone, they work under one of a few employment types. The type is not just a label. It affects the entitlements the person has, such as leave and notice.

This lesson is a short overview of the main types under Fair Work. The next lessons in this topic go deeper on each one.

In one line

The main employment types are full-time, part-time, casual and fixed-term, and the type affects entitlements such as leave and notice.

Why this matters¶

The employment type shapes what a person is entitled to and how their pay works. For example, Fair Work explains that full-time and part-time employees get paid annual leave, while casuals do not. Knowing the type helps you understand the pay and entitlements that go with each person on your team.

What you will learn¶

The main employment types under Fair Work
That the type affects entitlements such as leave and notice
Where the deeper lessons take each type further

Understanding the concept¶

Fair Work describes these main types:

Full-time. A full-time employee has an ongoing commitment to work and usually works an average of 38 ordinary hours a week. They get paid leave, such as annual leave, and get notice when their employment ends.
Part-time. A part-time employee is like a full-time employee but works fewer hours. Fair Work explains they get the same minimum entitlements as a full-time employee, worked out on a pro-rata basis for their hours.
Casual. A casual employee has no firm advance commitment to ongoing work. Fair Work notes that casuals generally do not get paid annual leave or paid sick and carer's leave, and generally do not need to give notice to resign.
Fixed-term. A fixed-term employee is engaged for a set period or task. Fair Work explains they are generally entitled to the same wages and leave as permanent employees, but generally do not receive notice at the end of the agreed period.

Because entitlements differ by type, the type matters for pay and for records. The deeper lessons in this topic take full-time, part-time and casual employment further.

For accountants & bookkeepers

Full-time and part-time employees are permanent employees with paid leave entitlements; part-time entitlements accrue pro-rata to ordinary hours. Casuals have no firm advance commitment and different entitlement settings, with a pathway to permanent employment in defined circumstances. Fixed-term employees generally receive the same wages and leave as comparable permanent employees but generally no end-of-term notice. Refer clients to Fair Work for the current detail of each type.

Example¶

Dev runs a garden centre with a mix of staff. He has one full-time manager on an ongoing basis, a part-time gardener who works set days each week, and a casual who picks up shifts in busy periods. Each person's entitlements differ with their type. When Dev thinks about leave and notice, he starts from the employment type, then checks the detail with Fair Work.

Common mistakes¶

Treating "casual" as a label without checking how the entitlements actually work.
Assuming a part-time employee has fewer entitlements, rather than the same entitlements worked out pro-rata.
Forgetting that the employment type affects leave and notice.

How this works in myaccountant¶

In the app — you set up each employee and their details, then run pay and lodge STP for them. Understanding the employment type helps you set each person up correctly. The detail of each type comes from Fair Work.

Key points¶

The main employment types are full-time, part-time, casual and fixed-term.
Full-time and part-time employees are permanent and get paid leave.
Casuals generally do not get paid annual leave or paid sick and carer's leave.
Fixed-term employees are engaged for a set period or task.
The employment type affects entitlements such as leave and notice.

Learn next¶

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

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