What is Casual Employment? | Meaning & Definition | Akrivia HCM

Casual employment is when workers are hired only when their services are needed. In this practice, employees’ service can be terminated without notice. It is a type of employment where the employee’s status and timetable may be subject to sudden changes. It involves minimal financial risk for both the employer and the employee. An employee can be dismissed without any obligation to provide severance pay.

A casual employee can resign from his duties without giving proper notice. There is no provision for probationary periods in casual employment. Casual employees also receive higher pay rates than regular full-time employees because they do not receive the same leave or travel entitlements as regular employees do. Most companies prefer to hire casual employees through casual employment contracts. The contracts document the terms applicable to the employees. A casual worker agreement provides a safeguard against possible future disputes by ensuring clarity, and it is also an effective means of resolving future conflicts.

Benefits of casual employee contract:

1. It is appropriate when you need a worker but is unsure of his weekly hours or exact schedule.
2. Employment contracts for casual employees can be beneficial to employers, as they provide a degree of administrative convenience.
3. It contains a provision that the engagement with the employee is by a purely temporary pattern to suit the employer’s particular business needs.
4. A written contract for casual employees can help manage expectations about job roles, salary, and hours.