Employing Christmas casuals

The holiday season brings increased demand, particularly in sectors such as retail, hospitality and hair and beauty. Many businesses rely on short-term casual employees - ‘Christmas casuals’ - to meet customer needs during this busy period.

Following are some key considerations when hiring Christmas casuals.

What makes an employee casual?

The Fair Work Act 2009 (FW Act) defines a casual employee as an employee who:

• has no guarantee of continuing and indefinite work, and

• receives a casual loading (usually 25%).

Casuals are not entitled to paid leave, payment for days off on public holidays, notice of termination or redundancy pay. The casual loading compensates for the absence of these entitlements.

Other features of casual employment include:

• the right to decline shifts,
• the ability to resign without notice, and
• generally, being rostered on an irregular or as-needed basis.

How long can Christmas casuals be employed for?

Christmas casuals are usually hired for the duration of the busy holiday period only, but they can stay on for longer.

• Short term only: if Christmas casuals are hired just for the holiday period, employers should make it clear that they won’t be rostered for ongoing shifts.

• Beyond Christmas: If Christmas casuals continue after the holiday period, they may be eligible to convert to permanent employment via the ‘employee choice pathway’ under the FW Act after 6 months for larger businesses, 12 months for small businesses.

Employers should assess from the outset whether casual or permanent employment is more appropriate. Misclassification can lead to claims for permanent entitlements and penalties under the FW Act.

What pay and entitlements are Christmas casuals entitled to?

Award and enterprise agreement conditions

Most Christmas casuals will be covered by a modern award or enterprise agreement, which sets out:

• pay rates (including the casual loading and in some cases, rates for junior employees),

• breaks, allowances, overtime, and penalty rates, and

• minimum engagement periods (e.g. under the Hospitality Industry (General) Award 2020, casuals must be paid for at least two hours per shift, even if they are rostered to work for less than two hours).

Employers should check the relevant award or agreement to ensure compliance. Breaches can result in backpay orders and financial penalties.

Information statements

Under the FW Act, employers must provide the:

• Fair Work Information Statement to all new employees,

• Casual Employment Information Statement to all new casuals (and again at set intervals depending on business size).

Both are available from the Fair Work Ombudsman’s website.

What sort of training and induction should Christmas casuals receive?

Christmas casuals must receive proper induction, training, and supervision. This is especially important for young or inexperienced workers, who are at higher risk of injury.

Can a Christmas casual be required to do an unpaid trial before starting paid employment?

Employers cannot require unpaid trials. Any time spent on training, induction, or trial shifts must be paid in line with the relevant award or agreement (including compliance with any minimum engagement requirements).

Key takeaways

• The same entitlements and obligations apply to Christmas casuals as to other casual employees. Employers should carefully check the relevant award or enterprise agreement to ensure correct pay, entitlements, and minimum shift lengths.

• Employers should take particular care to ensure young or inexperienced workers are provided with adequate induction, training and supervision to minimise work health and safety risks.

• The Fair Work Ombudsman’s website has a range of information and resources on employing casuals.