A casual worker with fixed hours can become a compliance nightmare for payroll, mainly if awards and rates are not applied correctly, especially given the legal definition of the type of employment.
Four factors must be taken into account to determine if an employee is in a casual position:
Now is the time for due diligence in assessing your casual employees’ current situations. Maintaining compliance with this matter is paramount to ensuring that your current employment and HR processes are working effectively for you and your employees.
You need to ensure that:
Casual employees must be offered a conversion to full or part-time permanent employment under the National Employment Standards if:
Employees must respond in writing within 21 days as to whether they accept or reject the offer. If they reject the offer (or don’t respond), they continue to be casual.
If your employee accepts the offer, you must discuss the terms with the employee and confirm them in writing within 21 days. The commencement date must be the first day of the employee’s next full pay period after that notice unless the parties agree otherwise.
Incorrectly classifying your employees can lead to major compliance issues and result in significant penalties if caught. Talk to a trusted adviser or speak to a legal professional about your employment agreements today.