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The truth about minimum hours for casual employees

12/07/2022 by
The Marketing Team
As a business owner, it is essential to understand the minimum hours for casual employees, per shift they work. This Business Kitz article will explain any laws and regulations that govern how long an employee must be employed for per shift. If you need a legally compliant employment agreement, download your template for free here. […]
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As a business owner, it is essential to understand the minimum hours for casual employees, per shift they work. This Business Kitz article will explain any laws and regulations that govern how long an employee must be employed for per shift.

If you need a legally compliant employment agreement, download your template for free here. Our document library offers samples of agreements tailored to various employment types. Additionally, you can access up to 5+ premium business documents, professionally written, and sign up to 7 documents per month. Keep all your agreements securely stored in your document vault. With Business Kitz, you'll never lose a critical document, ensuring your business is compliant with Fair Work regulations and organised for success.

What defines a casual employee?

Under the Fair Work Act, a casual employee is a person who accepts a job offer from an employer knowing that the offer does not include a firm advance commitment and that the work will continue employment indefinitely with for a minimum number of hours per shift. If a person is employed as a casual worker, their roster can change each week to suit their employer’s needs, and they can refuse or swap shifts.

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What is a no firm advance commitment?

There are 4 factors that determine whether an employer’s offer doesn’t include a firm advance commitment, however, there is not a requirement for all four to be satisfied to find there to be ‘no firm advance commitment’. These factors are:

  • Whether the employer can choose to offer the employee work and it’s the employee’s choice to work or not;
  • Whether the employee will be offered work when the business needs them to work;
  • If the employment is described as casual; and
  • If the employee is paid a casual loading (a higher pay rate for being a casual employee), or a specific pay rate for casual employees.

What are the minimum hours for casual employees per shift?

The minimum number of hours a casual employee can work varies depending on different Awards. For most industries, the minimum hours for shift work are generally 3-4 hours. This means that even if you roster an employee on for a 2 hour shift, you have to pay them for at least 3 hours’ work. Award examples include: 

  • Retail – 3 hours
  • Fast Food – 3 hours
  • Cleaning Services – 2 hours
  • Clerks – 3 hours
  • Building and construction – 3 hours

The minimum number of hours requirement exists to ensure that employees are not disadvantaged by working a short shift, with a maximum number of hours also applying to ensure the safety and wellbeing of employees.

What about rest breaks and meal breaks?

Casual employees are entitled to both rest breaks and meal breaks. A rest break is a 10 minute paid break that counts as time worked. A meal break is a 30-60 minute unpaid break that allows employees to eat a meal during their shift. Employees can choose to take the full 30-60 minute unpaid meal break, or a 20 minute paid meal break.

Is there a difference between part-time vs casual employees?

The main difference between part-time and casual employees are their shift hours, their employment benefits and wages. 

Hours

Casual employees work mutually agreed hours which can vary from week to week. Employers inform casual employees of how many hours they would like them to work each week and what day they are to work these hours. Employers also assume casual employees will work their rostered hours unless they're informed otherwise.

Part-time employees agree to a fixed number of hours when signing their contracts. Employers can only reduce or increase a part-time employee's hours by way of mutual agreement.

Wages

The hourly rate of casual employees is at least 25% more than part-time employees in a similar position. This higher rate is called casual loading. Casual loading makes up for the extra benefits part-time employees enjoy, including paid leave and job security.

Benefits

Part-time employees receive the pro-rata equivalent of full-time employee leave entitlements under the Fair Work Act. These annual entitlements are:

  • Four weeks of paid annual leave;
  • 10 days of paid sick, personal or carers leave;
  • Two days of paid compassionate leave;
  • Five days of unpaid family and domestic violence leave per year; and
  • Unlimited unpaid community service leave.

Casual employees are not entitled to paid leave. However, they can take unpaid leave for travelling and recovering from illnesses whenever their employer agrees. They also receive:

  • Two days of unpaid carer's leave per occasion;
  • Two days of unpaid compassionate leave per occasion;
  • Five days of unpaid family and domestic violence leave per year; and
  • Unlimited unpaid community service leave.

    FAQs on Casual Employment and Minimum Hours

     

    If you’re unsure about how casual employment works in Australia, this FAQ provides clear answers. Learn about minimum working hours, casual work entitlements, and the role of the Fair Work Ombudsman in protecting your rights as a casual worker.

    What are the minimum working hours for casual employment?

    A casual employee must be given at least 3 hours of work per shift. Employers cannot engage casual workers for less than this amount of time.

    What is casual employment in Australia?
    Casual employment is where a worker has no guarantee of ongoing work and typically works irregular hours. Casual workers are entitled to a higher hourly rate of pay, known as casual loading, to make up for the lack of entitlements like annual leave.

    What is the difference between casual and part-time employment?
    Part-time employees work regular hours each week and have an advance commitment to ongoing work. Casual roles, however, do not have set hours and casual workers only work when required.

    How are casual employees paid?
    Casual employees usually receive an hourly pay rate with casual loading, which compensates for the lack of benefits like sick leave or long service leave.

    What are the types of employment in Australia?
    The types of employment in Australia include full-time, part-time, and casual work. Each type has different entitlements and conditions under the National Employment Standards.

    How does the Fair Work Ombudsman regulate casual employment?
    The Fair Work Ombudsman ensures casual workers receive their rights under the National Employment Standards, such as minimum working hours and appropriate pay rates.

    What are the maximum working hours for casual employees?
    Casual employees may work up to 38 hours a week. However, they typically work fewer hours depending on business needs and the nature of casual work.

    Can a casual employee work in Australia long-term?
    While casual employment does not guarantee ongoing work, casual workers may continue for an extended period of time if work is available. Casual workers may also transition to permanent positions if both the employer and employee agree.

    Staying Informed About Your Casual Employment Rights


    Casual employment offers flexibility but comes with specific conditions that both employers and employees must understand. By knowing your rights and obligations under the Fair Work Ombudsman, you can ensure fair pay, proper working hours, and access to essential entitlements. Regularly checking employment guidelines helps you stay informed about any changes to minimum hours, pay rates, and your rights as a casual worker. Understanding these key points ensures a better work experience and helps foster a positive working relationship.

Are your employee agreements in order?

Save your company thousands in legal fees with our Australian Employment Agreement Templates drafted by top-tier Australian lawyers.

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The Marketing Team
Business Kitz Marketing team are experts in their field. You can expect the best business guides and updates on employment law here.
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