Employing Casual Workers? Beware of the risks!
- Employer Direct
- Aug 20, 2024
- 2 min read
Employing staff under casual agreements in New Zealand can be a convenient option for many businesses. However, the allure of flexibility comes with its own set of risks and challenges. In this article, we will delve into the potential pitfalls associated with casual employment agreements for employers in NZ, offering insights on mitigating risks effectively.
A genuine casual worker
Does not have a pattern of work
Does not have an ongoing expectation of work
Can accept or decline any work offered
And if this doesn't apply to your casual worker, then you could actually have a permanent employee.
But I gave them a casual employment agreement and they agreed!
The employment agreement is important, but more so is the actual nature of the employment relationship. Sometimes the nature of the employment can change over time, or if may never have been genuinely casual in the first place. We've also seen employers get confused between what permanent part-time employment, trial periods and casual employment look like, without meaning to do anything wrong.
What happens then?
Well there may be a risk that your casual worker can claim to be permanent employees. And if this goes to the ERA you may find you are directed to pay them compensation and their entitlements, such as accrued annual leave, even if there was an 8% loading on their pay. If you were to dismiss them, then this may also be decided to be an unlawful dismissal.
So what should an employer do?
If you have casual employees, regularly check whether they are still a genuine casual. If not, seek advice as you may need to consider whether they should have their employment changed to permanent part-time. And don't use a casual employment agreement to trial a new employee, that could be risky.
I appreciate this helpful explanation of the responsibilities and risks associated with managing casual workers. Clear employment practices benefit both organizations and employees. Many professionals also enhance workplace performance through the highly regarded strategic human resources management course & workshop for managers in Wellington, New Zealand, strengthening effective workforce planning and compliance.
Casual employment can offer great flexibility for both businesses and workers, but it comes with a fair share of risks that leaders need to stay on top of. Misclassification, inconsistent hours, and shifting legal obligations can all create headaches if not managed carefully. What I've noticed is that organisations with clear policies and regular reviews tend to navigate these challenges much more smoothly. We've refined our own approach and found that a highly regarded strategic human resources management seminar & course for executives in Wellington, New Zealand gave our leadership team the confidence to build more robust frameworks around casual employment. Out of curiosity—what's been the most unexpected compliance issue you've encountered with casual workers?