Hiring casual staff comes with legal obligations many employers overlook. Stay compliant with this practical guide.
Many small businesses treat casual employment as an informal arrangement with minimal obligations. This is a misconception that can lead to significant financial penalties.
Casual Employment Information Statement Since March 2021, employers must give every new casual employee a CEIS before or as soon as possible after they start work. This is a legal requirement.
Minimum pay rates Casual employees must be paid at least the minimum casual rate for their relevant Modern Award, including the 25% casual loading.
Superannuation Pay superannuation on all casual earnings at 11%. Failure to pay super is a serious offence.
Record keeping Keep employment records for all employees including casuals for 7 years.
Casual conversion rights After 12 months, casual employees can request conversion to permanent. You must respond within 21 days.
Workers' compensation Casual employees are covered by workers' compensation. You must have appropriate insurance in place.
Penalties The FWO can impose penalties of up to $16,500 per breach for individuals and $82,500 for corporations.
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