BUSINESS INFORMATION
Types of employment
There are various ways to employ staff, and it is essential to understand the correct wage and leave entitlements for each type of employment.
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Full-time and part-time employees
Full-time employees typically work an average of 38 hours per week. Their actual hours are agreed upon with the employer or set by an award or registered agreement.
Full-time employees are entitled to the following leave:
- Annual, personal, sick, and carers’ leave
- Bereavement or compassionate leave
- Parental leave
- Long service leave
- They also receive public holiday pay if the holiday falls on a scheduled workday.
Part-time employees work less than 38 hours per week and generally have regular hours. They receive the same wages and conditions as full-time employees on a proportional (pro-rata) basis according to their hours worked.
Casual employees
Casual employees are hired on an irregular basis depending on business needs and:
- Have no expectation of ongoing work
- Are not required to accept offers of work
- Receive a loading on top of their hourly pay rate
- Do not receive paid sick or annual leave
Are not required to provide notice when ending their employment, unless specified by an award, employment contract, or registered agreement
In some cases, casual employees may qualify for long service leave and parental leave after 12 months of employment.
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Fixed term and contract employees
You can hire employees on a fixed-term or contract basis for a set period or to complete a specific task. This may include project-based work or covering an employee on leave.
Fixed-term employees can be full-time or part-time and receive the same leave entitlements as permanent staff, calculated on a pro-rata basis based on the employment duration.
The length of employment should be agreed upon before the employee starts and documented in a written contract.
Employee or contractor?
Understanding the distinction between an employee and a contractor is crucial to ensuring compliance with tax and superannuation obligations set by the Australian Taxation Office (ATO).
Apprentices and trainees
Apprentices and trainees can be a valuable addition to your business. They work towards a nationally recognised qualification and must be formally registered through a contract involving a registered training provider, the employee, and you.
Wages for apprentices and trainees must align with their award or registered agreement.
For further details, contact your local Apprenticeship Network provider.
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Commission and piece rate employees
Employees can be paid based on their performance through piece rates or commission payments instead of an hourly or weekly wage. This arrangement may apply if:
- Their award or agreement permits it.
- They are not covered by an award or agreement.
The requirements for commission and piece rate employment depend on the applicable industrial relations system. It is recommended to seek guidance from Wageline or the Fair Work Ombudsman before setting up such an arrangement.
Migrant and overseas workers
If suitable employees are not available locally, hiring migrant or overseas workers may be an option. This can be done by:
- Employing a visa holder already in Australia with work rights, such as those on a working holiday visa or international students.
- Sponsoring a skilled worker from overseas or someone temporarily in Australia on a work visa.
Migrant workers have the same workplace rights as Australian employees, including award entitlements and superannuation payments.
For more details on hiring visa holders or sponsoring overseas workers, visit the Department of Home Affairs website.
More information
Create an employment contract that complies with the Fair Work system and suits your business needs using the free employment contract tool on the Business.gov.au website.
Visit the Fair Work Ombudsman’s Small Business Showcase for details on employer obligations.
Learn more about attracting and retaining employees.
DCK ENTERPRISE HELPLINE
Need more information about leasing?
Our commercial tenancy advisers at DCK Enterprise are available to address any questions or concerns.
- Call us on 00000
- Book an online or phone appointment
- Chat to us online
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