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As a small business owner, it is important you understand the differences between employee status. We often hear from employers who are confused about the differences between casual and part-time employees. Staying informed about these distinctions can help you optimise your business operations and ensure compliance with current Fair Work regulations in 2025.
Casual and part-time employees differ in a range of areas including work hours, leave, pay, public holiday payments and notice periods. Being aware of these nuances will help you make informed decisions when structuring your workforce.
When hiring an employee, it is crucial to understand what employment status best suits the role you want them to play in your business.
Let us break down the differences for you!
Part-Time Employees
A part-time employee is typically regarded as a permanent employee or one employed on a fixed-term contract. The same benefits generally apply to both full-time and part-time employees, with entitlements provided on a pro-rata basis for part-time staff.
Part-time workers typically work less than 38 hours per week, have regular and predictable working hours, and are entitled to paid leave.
Part-time work is generally seen as stable and clearly defined, offering the benefits of paid leave such as sick leave, annual leave, and carers leave.
Notice periods for part-time workers are usually set out in a modern award or within their Employment Agreement. It is advisable to review the relevant modern award guidelines—our Modern Award Analysis article provides detailed insights.
If an employer wishes to terminate a part-time employee’s employment, the employee is typically entitled to written notice or payment in lieu of notice.
Casual Employees
When thinking about what it means to be a casual employee, consider it as ad hoc work with irregular and unpredictable hours.
Casual employees generally have no firm commitment to their employer and are not obliged to accept all work offered by the employer.
Casual employment roles can involve irregular hours and are not guaranteed to be ongoing. However, different entitlements apply to ‘long term casuals’ who have worked for more than a year on a regular basis. Long term casuals may also be entitled to parental leave and can request flexible working arrangements.
If a casual worker wishes to end their employment, they can usually do so without notice, unless a notice period is required by a registered agreement, award, or employment contract.
Casual workers are entitled to:
- ‘Casual loading’ (this is a higher rate than that for part-time and full-time workers, compensating for benefits such as sick leave and annual leave which casual workers do not receive)
- 2 days’ unpaid carer’s leave
- 2 days’ unpaid compassionate leave per occasion
- 5 days’ unpaid family and domestic violence leave (within a 12-month period)
- Unpaid community service leave
A recent court ruling has determined that some casual workers may be entitled to leave payments if they work regular and systematic hours. More information on these developments is available on our Casual Worker Leave Entitlements page.
So, What Are The Differences Between Casual And Part-Time Employees?
Let’s break down the key differences between casual and part-time employees:
- Work Hours
| Part-Time Employees | Casual Employees |
| Have guaranteed hours of work. On average, work less than 38 hours per week. | No guaranteed work hours. Work hours are generally irregular and unpredictable. |
- Leave
| Part-Time Employees | Casual Employees |
| Entitled to paid leave. Leave entitlements include annual leave, sick leave, and carers leave. | No paid leave entitlements. |
- Pay
| Part-Time Employees | Casual Employees |
| Usually, pay is based on an annual salary as outlined by the modern award or Employment Agreement. | Usually, pay is based on an hourly ‘Rate of Pay’ with casual loading applied. |
- Public Holiday Payments
| Part-Time Employees | Casual Employees |
| Must be paid public holiday payments if their usual working day falls on the public holiday. If the public holiday falls on a day that the employee does not normally work, they are not entitled to public holiday pay. | No public holiday payments. |
- Notice Period
| Part-Time Employees | Casual Employees |
| Notice period is typically set out in a modern award or employee agreement. They are entitled to written notice or payment in lieu if their employment is terminated. | No notice period is required, unless a notice period is specified in an employee agreement or award. |
- Superannuation
Both casual and part-time employees are entitled to superannuation contributions calculated as a percentage of their ‘ordinary time earnings’ (this includes shift loadings but excludes overtime payments). As of 2025, the superannuation rate stands at approximately 11%.
The Ruling In Workpac v Rossato
In the landmark case of Workpac v Rossato, it was determined that if a casual employee works regular and systematic hours with predictable periods of working time, they may be entitled to benefits typically reserved for permanent employees, including:
- Personal leave
- Compassionate leave
- Public holiday payments
The case suggested that casual workers who demonstrate consistent, regular work patterns might receive the security and entitlements associated with permanent employment. As of 2025, the decision is still under appeal by the High Court of Australia, so businesses should remain alert to forthcoming clarifications.
Until the High Court finalises its review, the information about casual workers’ entitlements on Fair Work Australia’s website remains a reliable guide.
Conclusion
Knowing the differences between casual and part-time employees can help you optimise the functioning of your business.
However, determining the appropriate employment status can sometimes be challenging. It is essential that you clarify the role you want your employee to fulfil and ensure that the associated employment status aligns with that role.
In today’s dynamic employment landscape, regular reviews of your staffing contracts and workplace policies are more crucial than ever. Keeping abreast of legislative updates, such as those introduced in 2025, ensures your business remains compliant and your workforce is adequately supported. For further guidance on maintaining robust legal frameworks, explore our articles on What Makes a Contract Legally Binding and Modern Award Analysis.
It is important that you understand the role you want your employee to play in your business and what employee status coincides with that role.
We’re here to help! Reach out to our team for a free, no-obligations chat at team@sprintlaw.com.au or call 1800 730 617.
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