Gig economy vs casual employment in Australia — key differences

The terms "gig work" and "casual employment" are often used interchangeably, but they have important legal differences in Australia.

What is the gig economy? The gig economy refers to work arranged through digital platforms where workers are typically classified as independent contractors. Common examples include Uber, Deliveroo, and Airtasker.

What is casual employment? Casual employment is a form of employment (not contracting) where the employee has no guaranteed hours but has rights under the Fair Work Act.

The key differences Gig workers are independent contractors with no minimum wage guarantee, no employer-paid super, no workers' comp, and manage their own tax. Casual employees receive minimum wage plus 25% loading, employer-paid super at 11%, workers' compensation, and PAYG withholding.

Recent changes in Australia The Fair Work Legislation Amendment (Closing Loopholes) Act 2024 introduced new definitions to address misclassification of gig workers. The Fair Work Commission can now set minimum standards for "employee-like workers" in the gig economy.