Full-time employee vs part-time and casual
In Australia, the distinction between full-time, part-time, and casual employment affects entitlements, pay rates, and obligations for both employers and employees. Understanding these differences is essential for compliance with Fair Work requirements.
Full-time
- 38 hours per week
- All NES entitlements
- Paid leave accrual
- Ongoing employment
Part-time
- Less than 38 hours
- Regular pattern of hours
- Pro-rata entitlements
- Ongoing employment
Casual
- No guaranteed hours
- 25% casual loading
- No paid leave
- No ongoing commitment
Unlike the US concept of "full-time" which often varies by employer, Australian full-time employment is defined by the Fair Work Act 2009 and Modern Awards with specific legal protections.
How full-time employment works in Australia
Under the Fair Work Act, full-time employees are entitled to the National Employment Standards (NES). These 11 minimum entitlements apply to all full-time employees regardless of their award or agreement.
National Employment Standards (NES) entitlements
The applicable Modern Award or enterprise agreement may provide additional entitlements above the NES minimums. Employers must support compliance with whichever provides the greater benefit to the employee — this is known as the "better off overall test" (BOOT).
When is full-time employment used?
Full-time employment is typically the best choice when:
- Consistent workload: The business has ongoing work requiring 38 hours per week
- Regular availability: The role requires predictable availability during business hours
- Talent retention: You want to attract and retain skilled workers with competitive benefits
- Role continuity: The position involves responsibilities that require commitment and stability
Industries with high full-time employment rates include professional services, healthcare, education, manufacturing, and government. Hospitality and retail often use a mix of full-time, part-time, and casual workers to manage fluctuating demand.
Benefits of full-time employment
For employers
- Workforce stability: Reduced turnover and training costs
- Employee commitment: Greater investment in company success
- Predictable scheduling: Consistent availability for planning
- Skills retention: Keeps institutional knowledge in-house
For employees
- Job security: Ongoing employment with termination protections
- Paid leave: Annual leave, personal leave, and public holidays
- Predictable income: Consistent weekly earnings
- Superannuation: Regular employer contributions
Australian compliance tip
Misclassifying employees as casual when they work regular, systematic hours can result in back-payment claims and penalties. The Fair Work Commission considers the "true nature" of the employment relationship, not just what's stated in the contract. Review your workforce regularly to ensure correct classification.
How to manage full-time employees
Effective management of full-time employees involves several key responsibilities:
- Employment contracts: Provide written contracts specifying hours, pay, and conditions before or on the first day
- Award compliance: Identify the applicable Modern Award and ensure minimum rates and conditions are met
- Leave tracking: Maintain accurate records of leave accruals, requests, and balances using leave management software
- Rostering: Schedule 38 hours across the week within award-compliant spread of hours using rostering software
- Payroll accuracy: Calculate ordinary hours, overtime, and penalty rates correctly with payroll integration
- Record keeping: Keep employment records for 7 years as required by Fair Work regulations
Common mistakes employers make
Incorrect classification
Treating workers as casual when they have regular, predictable hours and an ongoing expectation of work.
Underpaying entitlements
Not calculating annual leave loading (typically 17.5%) or penalty rates correctly.
Ignoring award conditions
Failing to apply the correct Modern Award minimums for wages, allowances, and conditions.
Poor record keeping
Not maintaining required employment records including hours worked, leave taken, and pay details.
Key takeaways
Full-time employment in Australia means working 38 ordinary hours per week with access to all National Employment Standards entitlements. It offers stability for both employers and employees, with clear legal protections under the Fair Work Act.
Employers must ensure correct employee classification, award compliance, and accurate record keeping to avoid penalties and back-payment claims. Using workforce management software can help automate rostering, track leave accruals, and maintain the records required for Fair Work compliance.
