First published on Thursday, November 7, 2024
Last updated on Thursday, November 7, 2024
Over the last few years Australia has experienced the ‘casualisation of workforce’. An uptake of casual employment contracts. This brings about changes to how people work and how businesses operate.
The reason for this? Well, there’s several benefits casual employment provides both employers and employees. For businesses across Australia, hiring workers under these contracts offers flexibility, cost-savings, and access to a mixture of specialist skills.
Rates of casual employment in Australia
While it’s not easy to pinpoint specific rates of casual workers in Australia, according to data from August 2023, the current rate sits at 22%*. Which is around 2.3 million working Australians.
*It’s important to note, these figures can vary depending on how an employee may have been defining their state of employment at the time of the survey.
With legislation changes to the Fair Work Act 2009, a clearer definition of ‘casual worker’ has been identified. Giving employees more rights and employers more responsibilities. See Guidelines for hiring casual staff in Australia for more information on this.
Reasons for casualisation
There are several reasons that can be attributed to the cause of casualisation. From the COVID-19 pandemic to a change in attitudes towards work and an employee’s work-life-balance. Here are just a few:
Flexibility
The flexibility offered by casual employment helps businesses manage fluctuating economic situations in uncertain times. This is particularly relevant to small businesses that are more vulnerable to economic shifts or political changes.
Change in attitudes
The pandemic has helped to shift attitudes towards work. Since 2020, more groups of people, especially Gen Zs and Millennials, have had a change in attitude to ways of working. Enjoying the flexibility and less formal approach casual employment offers.
Advancements in technology
With this, and the rise of remote working, casual work, more specifically within the gig economy industry, is now easier and more accessible for employees. Plus, for employers, with the likes of video calling and business messaging apps, managing casual workers, wherever they may be located is simpler now too.
Industries using the skills of casual employees
Throughout Australia a wide range of industries benefit from hiring casual employees. Accommodation and food, arts and recreation, retail, and agriculture have the largest numbers of casual workers. But other industries such as:
Health and social care
Agriculture
Tourism and events
Administration
Also benefit from the hiring of casual staff.
Examples of casual workers
From the most common examples, such as hospitality workers and casual farm workers to entertainment staff and childcare roles. Casual employees can work within all types of companies and in a variety of positions.
Delivery personnel is a good example of a casual employment opportunity. With businesses regularly hiring casual delivery drivers to deliver food or courier items to manage peak demand.
Another example of casual staff is a hospitality worker or restaurant server. Where peak times, such as during Christmas and New Year, get busier and busier, casual staff help meet demands and plug staffing gaps.
How does this work?
A casual worker such as a hospitality worker, may only be rostered onto shifts depending on the needs of the business. If there are particularly busy periods, such as during the summer months or at Christmas, the casual employee may be offered more shifts than perhaps they would be at quieter times.
While the business is offering these shifts, it is the employee’s choice to accept, decline or rearrange working shifts. However, in some casual employment contracts, the employee may be required to work a minimum number of hours per week.
The advantages of casual employment contracts for businesses
There’re clear advantages of this, and not just for the employee, but also the business. If you’re considering hiring casuals, here are just a few reasons why it is a good idea:
Greater flexibility: having the ability to offer shifts on an as-needed basis is ideal for many businesses. Particularly small businesses in industries like retail that will experience slower trading days depending on footfall and seasonal demand. The flexibility means you can work on an as-needed basis, rather than paying an employee to work when you don’t require them.
Access to new skills: casual workers can provide businesses with a range of skills. Having the skills of an independent contractor or freelancer, they are often able to quickly adapt to new working environments and adjust to working schedules as and when required.
Reduce staffing costs: for small businesses with limited recruitment budget, hiring casual staff can be an effective solution for plugging staffing gaps without the need for a full-time, fixed salary. Casual employees will only ever be paid for the work they do, rather than receiving a regular paycheck. The benefits of this means that you can choose to utilise casual workers when it is financially convenient for you to do so.
Factors to consider before hiring
Before hiring casual employees, it is important to make yourself aware of your responsibilities as an employer.
In Australia, for example, there are different wage rates for casual workers depending on the industry, award or agreement. Keeping up to date with minimum wage rates is important. And don’t forget casual loading. Before hiring you will need to think about:
The relevant industry award or agreement
A causal employment contract
Restrictions and responsibilities
Casual employee rights
Guidelines for hiring casual staff helps to explain the rights and responsibilities you have as a business when hiring and managing casual workers. Plus, our 24/7 employment relations advice line is available when you need HR support and advice.
Discover stress-free management of your staff’s shifts & rosters
With our BrightHR software it’s easier than ever to manage your casual employees. Thank to our shifts & rosters planning feature you can provide employees with access to accept or decline shifts with the simple click of a button. This means that casual staff members can accept shifts you offer them based on their availability or requirement for work.
What’s more, you can activate our Open Shifts setting which provides all members of your team to assign themselves to available shifts.
Discover stress-free roster planning with BrightHR by booking your free demo today.