Part-time vs casual employment
Part-time and casual are both types of employment with less than full-time hours, but they differ significantly in structure, entitlements, and flexibility. Understanding this distinction is essential for correct classification under Fair Work.
Part-time
- Agreed regular hours (less than 38)
- Ongoing employment
- Pro-rata leave entitlements
- Hours specified in contract
Casual
- No guaranteed hours
- No ongoing commitment
- 25% loading instead of leave
- Hours offered as needed
Part-time employment provides more stability and ongoing entitlements, while casual offers flexibility for both employer and employee. Misclassification can lead to back-payment claims.
Calculating part-time entitlements
Part-time employees receive pro-rata entitlements based on their ordinary hours compared to full-time (38 hours per week). The calculation is straightforward:
Pro-rata calculation
Pro-rata % = (Part-time hours ÷ 38) × 100
Part-time hours and overtime
Understanding when overtime applies to part-time employees is important. It varies by award, but common rules include:
- Beyond agreed hours: Many awards treat hours beyond the agreed contract hours as overtime
- Beyond 38 per week: Hours exceeding full-time equivalent always attract overtime rates
- Daily maximums: Some awards trigger overtime for daily hours beyond a certain limit (e.g., 8 hours)
- Additional hours: Some awards have "additional hours" (at ordinary rate) before overtime kicks in
Part-time contract requirements
Part-time employment must be documented with agreed hours. The Fair Work definition requires a "regular pattern of hours" that is "reasonably predictable". If hours vary significantly week to week with no pattern, the arrangement may actually be casual employment.
Benefits of part-time employment
For employers
- Flexibility: Match staffing to demand patterns
- Committed staff: More stability than casuals
- Cost management: Lower leave liabilities than full-time
- Wider talent pool: Attract those seeking flexibility
For employees
- Work-life balance: More time for other commitments
- Leave entitlements: Pro-rata annual and personal leave
- Job security: Ongoing employment relationship
- Predictable hours: Known schedule for planning
Common mistakes with part-time hours
Treating part-timers as casuals
Employees with regular, predictable hours should be part-time (with leave entitlements), not casual. Misclassification can result in back-pay claims.
Not documenting agreed hours
Part-time employment requires a written agreement specifying the regular pattern of hours. Without this, the arrangement may not meet the legal definition.
Regularly exceeding agreed hours without updating contract
If a part-time employee consistently works more than their contracted hours, the contract should be updated to reflect actual hours—or overtime paid.
Incorrect pro-rata calculations
Leave and other entitlements must be calculated based on actual ordinary hours vs 38. Getting this wrong leads to under or over-accrual.
Key takeaways
Part-time hours are regular, agreed hours less than 38 per week. Part-time employees have ongoing employment and receive pro-rata entitlements based on their hours compared to full-time. Clear documentation of agreed hours is essential, and hours beyond the agreement may attract overtime rates.
RosterElf's rostering software helps manage part-time schedules by tracking agreed hours against actual hours worked, automatically calculating pro-rata entitlements, and alerting you when additional hours might trigger overtime under your applicable award.
