Full time, part time and more....

Employees.  Choose the right people and you are on the way to success. 

​Maybe it’s not that simple – there’s training, leadership, fostering a positive culture, motivating, communicating, professional development and all the other things your favourite HR Staff n’ Staff HR consultants can help you with - but getting the right personality with the right skill set and you are laying a solid foundation.  If you are at the start of your business journey, or looking at the structure of your established workforce, there are different categories of employment that you can consider and what you choose will be dictated by the needs of your business.  Let’s take a look at the types of employees you can consider….

---

Full Time Employees
This is an easy one – full time employees represent the greater numbers in the Australian workforce.  But what constitutes full time employment?

A full-time employee:

• works on average, 38 hours each week but may work a number of reasonable additional hours.  The actual hours of work can be dependent on the job or the industry and are agreed between the employer and the employee or may be set by an Award or a registered agreement.
• is a permanent employee or on a fixed-term contract.
• accrues annual leave, personal leave and long service leave – minimum leave entitlements are outlined in the National Employment Standards (NES) but may differ based on the Award or registered Agreement but must pass the Better Off Overall Test (BOOT)
• can access carer’s leave outside of personal leave, compassionate leave and Family & Domestic Violence Leave along with Community Service Leave (Jury Duty and Volunteer work in the emergency sector).
• is eligible for 12 months unpaid parental leave after completing 12 months of continuous service
• must be paid for public holidays that occur on a normal working day.  You may request a full time employee work on a public holiday but they can refuse. Depending on their salary and award if the employee works a public holiday they may be entitled to a higher rate of pay for this day.
• notice is required to be given if employment is being terminated.  The length of time depends on the length of employment and the age of the employee in question.  
• is generally eligible for redundancy pay after twelve months of employment.  The amount depends on the industry, contract and/or period of employment but is also dependant on the number of employees in the business and the award or agreement that applies to the employee. 

Part Time Employees
The very name lets you in on the secret – part time employees work part of the time of a full time employee.   

• works, on average, less than 38 hours per week
• generally works regular hours each week

From there, the entitlements and considerations for a part time employee are the same as a full time employee with some consideration given to pro rata application when it comes to most forms of leave.  The NES outlines the minimum entitlements.  

Casual Employees
Employing casuals provides you with flexibility as you don’t need to provide a firm commitment in advance as to how long they will be employed or the when they will be rostered.  Conversely, a casual employee doesn’t have to commit to all work offered either.  

A casual employee:

• is not guaranteed hours of work
• generally, works irregular hours/shifts
• does not accrue annual or personal leave.  Instead their hourly rate incorporates a loading that offsets the loss of these accruals.
• does not need to provide notice to end their employment with you – unless stipulated by an Award, registered agreement or a contract.
• within a twelve month period, casual employees can access periods of unpaid carers leave, compassionate leave, family and domestic leave and community service leave.
• may accrue long service leave but this is dependent on the state or territory in which you employ them.
• may be entitled to 12 months unpaid parental leave subject to eligibility criteria.
  
  

Casual employees can request to have their employment converted to permanent full or part time work as a result of the inclusion of the casual conversion now incorporated in many Modern Awards if they have worked regular and systematic hours over a 12 month period.   As an employer, you can reject the request but only on reasonable grounds.  To understand more about casual conversion, click here to read more.  

Fixed Term Contract
As the name suggest, fixed term contract employees are employed for a specific period of time that is clearly defined within the employment contract.  Fixed term employees are not permanent employees as the position is not ongoing – it has a predetermined end date.  

Fixed term employees are generally full time or part time employees and usually access the same entitlements as their permanent counterparts but there may be some additional benefits to consider dependent on the Award or agreement or even the negotiated contract.  

Daily Hire
Daily Hires are an unusual category and exist only within building and construction as well as the plumbing industries.  Daily hire employees are also similar to full time and part time employees in terms of the entitlements they can accrue and access.  

The major points of difference are that they have the following entitlements and considerations:

• you are able to give them only one days’ notice to end their employment with you.  They too can provide only a single days’ notice if they want to leave.
• a tradesperson will be allowed 1 hour before termination to collect, clean, sharpen and transport their tools
• they receive a ‘daily hire’loading.  This loading is a part of their hourly rate and is to compensate for the ability of the employer to terminate without needing a formal performance management process and with one days notice.
• daily hire employees can work full-time or part-time hours.

Even within the two industries, there are restrictions as to who can be employed as a Daily Hire – this will be outlined in the relevant awards and your HR consultants can advise you if you are unsure.  

Contractors
This category is one that can get you into trouble if not managed correctly.  Contractors are NOT employees – they are independent workers who are running their own business and as such, they have different rights and obligations to your employees.  

For clarity, contractors operate with the following features:

• have a considerable level of control over how the work is done. 
• are usually able to delegate the work to another person 
• are usually contracted for a specified task or period of time. 
• provide their own tools and equipment to complete the contracted task/s.
• pay their own tax and GST
• have an abn and submit invoices for payment as opposed to being on a salary or wages.
• they don’t receive any paid leave.
• if they are a sole trader they are entitled to superannuation contributions of 9.5% which the employer is responsible for paying, and they are automatically covered under the businesses work cover insurance.
  
  

If the contractor is a PTY LTD (company) then superannuation is not required and they must have their own work cover insurance for themselves and any workers they employ.   Sham contracting is a very real issue with the explosion of the gig economy – it’s where an employee is treated as a contractor but they don’t meet the contractor criteria.  Click here for more information about this issue and what the Fair Work Ombudsman considers when determining whether someone is an employee or a contractor.  

Which category will you choose?
There is a lot to consider when looking at resources in and for your business.  No matter if you are looking to employ for a new role or backfill a newly vacant position, it always pays to step back and take a look at what your business really requires and formulate a strategic plan for the type of employee you need, the skills they should possess, the type of team they will need to fit into and therefore the personality style that will work best. Importantly, the category of employee or contractor as outlined above should be reviewed to best suit the needs of your business.  

Whilst it seems prudent to be quick to replace an outgoing employee or fill a new role, it may be more sensible to take time to really consider the position description which may in turn redefine the category of employee your business really needs.  It may also be worth looking at psychometric testing as that may help guide you through the recruitment process and minimise the potential for choosing the wrong candidate.  Call the team at HR Staff n’ Stuff as our HR consultants can  provide the support and advice you need so that you can get on with leading your business, confident that you are putting the best people and structure in place to support your companies growth and success.  

Subscribe to our HR Newsletter. No junk, Just the Good Stuff!