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Hiring Casuals or Fixed Term Employees for Christmas: Tips for Small Businesses

Seasonal WorkersNovember 29, 2018

Hiring Casuals or Fixed Term Employees for Christmas: Tips for Small Businesses (Last Updated On: November 28, 2018)

Hiring Casuals or Fixed Term Employees for Christmas?

The Christmas and New Year period is a typically busy time in the hospitality and retail industry, meaning many small business owners may turn to casual employees to bolster their workforce and fill specific jobs.

There are a few options available for businesses to consider depending on the individual requirements of the role. It is important for businesses to be aware of the advantages and disadvantages of each option in order to set the business up for success during this period. Each option is explored in further detail below.

Hiring Casuals over Christmas and New Year

During busy seasons, engaging employees on a casual basis will usually provide employers with the most flexibility in relation to fulfilling their resource requirements. Due to the nature of casual employment, casual employees generally have no guarantee of hours and can be called upon as required by the Employer.

The Pros

  • Flexibility for the employer to meet increased demand or a specific task
  • No obligation to retain the employee (before a certain length-of-employment threshold is met)
  • No need to pay leave entitlements and may be a cheaper resource for sporadic tasks than other forms of short term employment

The Cons

  • Casuals will attract a higher hourly rate in lieu of entitlements granted to permanent staff
  • Casuals are usually required to be engaged for a minimum period (e.g. 3 hours) per shift depending on the relevant award
  • Some awards require a casual to be offered permanent (full-time/part-time) employment after a specific period of time (commonly 6 months)
  • Casuals have the ability to reject shifts offered to them
  • Casual employees can be difficult to retain and may be less committed to the business
  • Long term, regular casuals may become eligible for additional entitlements provided to part-time and full-time employees.

Hiring Fixed Term Employees over Christmas and New Year

Engaging an employee for a fixed-term period (e.g. Christmas holiday period) may provide employers with a more cost efficient option (lower hourly rate than casuals) and attract a larger pool of potential employees due to the guarantee of hours over for a fixed period of time.

Employees may be engaged on a full-time or part-time basis under this option. Additionally employees engaged on a fixed-term basis are generally excluded from access to unfair dismissal, provided their employment is terminated at the end of the specified period.

The Pros

  • Fill an immediate gap in your workforce
  • You can recruit a specialist, already proficient in a particular skill or project
  • More accurate budgeting and resource planning
  • Can be a great way to trial and employee before offering permanent work

The Cons

  • There is generally less flexibility in varying the hours a fixed term employee works, as set hours are guaranteed
  • Fixed-term employees will be entitled to personal and annual leave on a pro rata basis
  • Fixed-term employees rostered to work on a public holiday are generally required to be paid even if the business is not trading
  • Part time fixed term employees are also often required to be engaged for a minimum period per shift under the relevant award
  • Continuously extending or rolling over a fixed-term contract of employment may risk the position being considered permanent.

Whichever option is most suitable for your business, it is important that the type of engagement is clearly documented in writing between both parties. Failing to clearly document the type of engagement in an employment contact could expose the business to potential claims.

If you would like any further advice on recruitment options during the busy Christmas holiday period please call our advice line on 1300 651 415.

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