Casual employee entitlements

Casual employees under the Vehicle Award are entitled to a casual loading for every hour that they work. This casual loading compensates them for entitlements they don’t receive, such as annual leave and personal leave.

Casual employees are not entitled to notice of termination or redundancy pay under the Vehicle Award. However, they are entitled to other award conditions such as penalty rates for work performed during the evenings, weekends and public holidays.

Visit Finding the right pay for tools to help you calculate minimum wages and penalty rates for your casual employees.

Note: Different wage rates apply to casual driveway attendants, roadhouse attendants and console operators. You can find minimum wages for these employees in your Pay & Conditions Guide.

When you hire a casual employee you must inform them:

  • their employment is casual
  • who they are employed by
  • their award classification level
  • the number of hours they will be likely to work per week
  • their rate of pay.

It is best practice to give your casual employees this information in writing. You can use the template letter of engagement for this, which is available from the links below.

Overtime

Only certain casual employees are entitled to receive a higher rate of pay for working overtime.
Please Contact us for overtime rates for:

Employment type Overtime clause
Casual employees in the repair, service & retail stream 41.1
Casual driveway attendants, roadhouse attendants and console operators 36

All other casual employees are not entitled to overtime rates.

Casual conversion

Under the Vehicle Award, a regular casual employee who has been employed for 6 months or more can elect to become a full-time or part-time employee.

You must give your regular casual employees written notice of their right to convert to full-time or part-time employment within 4 weeks of reaching six months service. There is a template letter available from the Industry specific templates link below that will help you with this.

Casual employees can elect to become a full-time or part-time employee by providing you with 4 weeks’ notice in writing. You can’t unreasonably refuse a casual employee’s election to become a full-time or part-time employee. You must advise the employee of your decision within 4 weeks of receiving the employee’s election.

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Page last updated: 16 Nov 2011