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Employing casuals is cost effective but mind the traps

Employing casuals is cost effective but mind the traps

May 26, 2017 By James L Leave a Comment

There are several benefits to employing casuals within small businesses. They can be cost effective and provide flexibility when needed. However, it is important to be mindful of the traps. It is easy for a casual to increase workload and hours and move into a regular work pattern. When the casual starts working a regular work pattern, they can no longer be categorized as a casual. To prevent this try to mix up the casual’s work days and hours. Also, consider offering this casual a more permanent position to decrease cost. Avoid paying a casual to work regular hour, this can become a very costly trap.

Key Takeaways:

  • If a casual worker begins to take on regular hours, consider offering the worker a permanent hire position, or employment, covering a pre-set time period.
  • Remember, it’s legal for a small business owner to terminate a worker’s employment, without risk of unfair dismissal charges, if the termination is within 12 months.
  • A recent court decision recently proved that a hire, considered casual, under an enterprise agreement, can still be regarded as permanent, by the standards of the Fair Worker Act.

“And once a regular work pattern emerges, the employee no longer falls under the definition of “casual.””

Read more: https://insidesmallbusiness.com.au/planning-management/employing-casuals-cost-effective-but-there-are-traps

Related posts:

  1. Casual hours count towards redundancy pay – DynamicBusiness (blog)
  2. Five ways your business can survive the holidays
  3. Cost vs Price – A Case Study
  4. Seven effective risk management steps businesses should take

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