On Hire Casual Employment Agreement

Legal Template 

User Guide 

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Cover of the 'On-Hire Casual Employment Agreement' document showing two hands shaking in front of blinds, emphasizing a business agreement. Includes text about legal requirements and features Ready Set Recruit branding.

Need to know

  • We’re thrilled you’ve invested in this template, which is made specifically for Australian recruitment agencies.

    We’ve brought in all our experience working with agencies across Australia to create a friendly, easy-to-use template just for you.

    If you like to work hard to complete documents and feel like the effort equals the investment, you might be in shock! We deliberately don’t want this to be hard to complete so you can get on with the business of matching people with your clients.

    So, while it might seem too good to be true, trust us, that’s exactly the point.

    We’ve put in the hours, so you don’t have to. This means that in minutes, you will have an awesome, recruiter-made document.

    However, our philosophy at Ready Set Recruit Legal is that the best legal document in the world is no good if you don’t know how to use it.

    This User Guide provides more information about this template before you customise it so you can be confident in rolling it out.

  • We have provided two versions of the on-hire casual agreement—one that the worker can sign and another that can be used with a ‘click to accept’ solution, such as Astute Payroll.

    You will see fill-the-blank sections called ‘Custom’. We have provided some guidance notes to help you fill these in and more detailed instructions for some sections (see the Completion Checklist).

    To replace a ‘Custom’ prompt, simply click on it and insert your text.

  • This template is to be used to engage casual employees that you wish to on-hire to your clients.

    Casual employees have different entitlements to full-time and part-time employees (who are often described collectively as permanent or ongoing employees) and generally also have various entitlements under the terms of a relevant modern award, enterprise agreement or contract of employment.

    A statutory definition of ‘casual employee’ can be found in section 15A of the Fair Work Act. A person is a casual employee if all the following elements are satisfied:

    • An offer of employment is made on the basis of no firm advance commitment.

    • The person accepts the offer on that basis.

    • The person is an employee as a result of that acceptance.

    This definition of ‘casual employee’ will be broadened from 26 August 2024. This template will still be applicable for casual engagements after this date, but you should ensure you obtain up-to-date advice as required for your agency.

  • These employment terms are ‘umbrella’ terms the casual employee signs once. Therefore, you don’t need to send these terms for each new assignment.

    Instead, you can document assignments as follows:

    Initial Assignment: populate the Assignment Summary attached to the main employment terms

    New Assignments: issue a new Assignment Summary based on the provided Standalone Assignment Summary template.

  • You are required to provide each casual employee with both of the following Fair Work Information Statements before, or as soon as possible after, they start their new job.

    Fair Work Information Statement

    Casual Employment Information Statement

    You are also required to then provide the CEIS:

    • 6 months after their first day;

    • 12 months after their first day;

    • then every 12 months after that if they remain your casual employee.

  • The base rate of pay for a casual employee engaged:

    • Under a modern award - cannot be less than the minimum award rate of pay for the relevant classification.

    • Under an enterprise agreement - cannot be less than the minimum award rate of pay the casual employee would have received under a modern award that would have applied in the absence of the relevant enterprise agreement, or less than the minimum rate of pay for the relevant classification contained in the enterprise agreement.

    • As award/agreement free, cannot be less than the National Minimum Wage.

  • Item descriThe Assignment Summary defaults to superannuation being paid in addition to the rate of pay i.e. the rate of pay is exclusive of superannuation.

    You can adjust this in the Assignment Summary to ‘inclusive of superannuation’ as required (assuming all minimum rates of pay are still complied with).ption

  • Casual loading is the main entitlement for casual employees, which does not arise for full-time or part-time employees.

    Every casual employee is entitled to casual loading, and this template provides for the payment of casual loading.

    Casual loading is an additional percentage (a minimum of 25% on top of the casual employee’s base hourly rate of pay) paid to casual employees in compensation for a range of entitlements provided to full-time and part-time employees and not to casual employees.

    The Assignment Summary requires you to split out the casual loading amount to ensure it is identifiable. We recommend you maintain this approach to maximise access to offsetting protections under the Fair Work Act.

    If you prefer to insert a single rate, you can replace this section of the Assignment Summary as follows (and adjust language for the loading amount and whether super is included in the rate):

    Your total rate of pay on this Assignment is below and includes 25% casual loading. The casual loading is a separate identifiable amount paid to compensate you for not having entitlements under the Fair Work Act 2009 (Cth) that permanent employees receive.

    Total Rate: $XX.00 per day/hour plus superannuation as required by law.’

    The statutory offsetting rule is intended to apply to cases where a person has:

    • Been misclassified as a casual employee

    • Received a casual loading (that is clearly identifiable and paid to compensate the person for not having one or more of the following relevant entitlements under the NES, a fair work instrument or contract of employment during the employment period)

    • Been subsequently found by a court to be a permanent employee who is entitled to benefits that accrue to that type of employment, such as annual leave

    If you are paying a casual employee a day rate of $1000 plus superannuation, the rate would appear as follows:

    Base Rate - $800

    Casual loading - $200 (25%)

    Superannuation – X% to, i.e. meet the prescribed minimum level of superannuation as required

  • All casual employees are entitled to the following minimum conditions:

    • Unpaid carer’s leave and unpaid compassionate leave. However, casual employees do not receive paid personal/carer’s leave or paid compassionate leave entitlements

    • Paid family and domestic violence leave

    • Unpaid community service leave. However, casual employees are not entitled to be paid for jury service under the NES (National Employment Standards)

    • Be absent from work on a public holiday unless the employer reasonably requests them to work. However, casual employees are not entitled to payment for public holidays they are not rostered to work

    • Certain casual conversion entitlements (see below for further information)

    • Long service leave entitlements apply to certain casual employees, depending on the state or territory.

    If a casual employee is a ‘regular casual employee’, they may have additional entitlements.

    Casual employees are not entitled to:

    • Annual leave

    • Paid personal/carer’s leave and compassionate leave

    • Payment while on jury service

    • Payment for public holidays where the casual employee is not rostered on for the public holiday

    • Notice of termination and redundancy pay

  • As true casual employees are employed on a discrete basis, notice of termination provisions would not usually specify a notice period.

    However, as clients and white-collar workers often request notice periods, the template allows you to set a minimum notice period for a specific assignment in the Assignment Summary.

    However, we don’t recommend setting a notice period longer than 5 business days for casual employees.

  • Eligible casual employees have a pathway of conversion to permanent full-time or part-time employment as a minimum entitlement.

    You should review your obligation regarding casual conversion, noting that casual conversion entitlements are changing from 26 August 2024.

  • If you supply Associates (i.e. temporary labour-hire workers) to host organisations, you and the host organisation both have duties to ensure their health and safety while performing an assignment.

    If you’re unfamiliar with your OHS obligations, we recommend you get in touch with your State/Territory safety authority or industry body like RCSA or APSCo (members of RCSA or APSCo can access lots of helpful information) and/or seek out expert help from a staffing expert like www.riskcollective.com.au

There are two sections in this User Guide:

1. Need To Know contains some important information to help you get to know your new template.

2. The Completion Checklist below provides guidance on specific clauses.

This User Guide is general in nature and cannot be relied upon as legal advice as it does not take into consideration your exact business circumstances.

Further, by purchasing this template, you are not obtaining legal services or legal advice, and subject to non-excludable Consumer Guarantees under the Australian Consumer Law, we make no warranty as to the fitness of purpose of the template or any content or information provided in the template or this User Guide.

You are solely responsible for completing and using the template. If you have any questions or concerns regarding the use or legal enforceability of a document, we recommend you seek professional legal advice. If you require legal services from us, please obtain a quote for a customised document by emailing info@readysetrecruit.com.au

Completion
CHECKLIST

  • Insert your company name as registered with the Australian Securities and Investments Commission (ASIC).

  • Insert your Australian Business Number (ABN).

  • Insert the State or Territory where your main office is located, e.g. New South Wales.

    You must still comply with all applicable laws, i.e. Fair Work Act.

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