In today’s climate, casual employment can appear to be an attractive option for employers. For many businesses it offers flexibility: you engage staff “as needed”, ramp up when demand spikes, and avoid committing to ongoing hours. However, as recent decisions show, if that flexible arrangement becomes regular and predictable, you may inadvertently be treating a worker as permanent, bringing additional obligations and risks.

What is “casual employment”? 

While the term “casual employee” is familiar, you could argue it isn’t well defined. What matters is the substance of the arrangement.  A casual worker typically works when it suits both employer and employee, with no guarantee of ongoing work and no obligation on either side to offer or accept future work.  Casual workers are typically provided holiday pay with each payment “as they go”, as they never know when they might be working next.

Here’s the catch.  If the worker is rostered regularly, has predictable hours, is expected to accept work, or is an essential part of the business, then the relationship may look more like part‑time or full‑time ongoing employment.

Why employers should care 

When a worker engaged as a casual is found to actually be a permanent employee, the implications for you as employer are significant.  At a high level, the main sticking points are:

  • The risk to entitlements. Although ‘pay as you go’ holiday pay will have been paid in most cases, you may then need to pay out these entitlements again, under a permanent arrangement.
  • There is a risk of being caught out ‘terminating’ the employee if you don’t offer them any further work, leaving you at risk of an unjustified dismissal.

Five key practical safeguards for employers

  1. Be crystal clear about the nature of the role
  2. Monitor the work pattern
  3. Update the agreement if the reality shifts
  4. Training for managers and payroll staff
  5. Document the arrangement, and revisit it

Casual employment still remains a great option in some cases, especially for businesses with fluctuating demand, seasonal peaks or on‑call needs. But the label alone is not a shield. If the working pattern gives rise to an expectation of ongoing employment and regular hours, the relationship will be treated as permanent.