Casual employees in Australia do not receive paid annual leave, paid sick leave, paid public holidays, notice of termination or redundancy pay.
In exchange, they are paid a casual loading, most commonly 25% on top of the base hourly rate, to compensate for those entitlements. Casuals still receive a defined set of protections under the National Employment Standards (NES): two days of unpaid carer’s leave and two days of unpaid compassionate leave per occasion, 10 days of paid family and domestic violence leave each year, unpaid community service leave, superannuation, and a pathway to permanent employment. Longserving casuals may also access unpaid parental leave, flexible working requests, unfair dismissal protection and, in some states, long service leave.
Casual work makes up a significant share of the Australian workforce, and the rules governing it changed materially on 26 August 2024. If you are a casual employee wondering what you are actually entitled to, or an employer trying to get your obligations right, this guide sets out the current position in plain English.
What is a casual employee?
The casual employee definition since 26 August 2024
A person is a casual employee if, at the time they start work, two things are true:
- The employment relationship has no firm advance commitment to ongoing work
- They are entitled to a casual loading or a specific casual pay rate under an award, registered agreement or employment contract
A definition of casual employment was first written into the Fair Work Act on 27 March 2021. That original version looked only at the terms of the employment contract. The definition that applies today, in force since 26 August 2024, goes considerably further: it requires an assessment of the real substance, practical reality and true nature of the employment relationship, not just what the contract says.
What “no firm advance commitment to ongoing work” actually means
The question is decided on the whole picture, not a single factor. The Fair Work Ombudsman lists a number of considerations, including whether:
- the employer can offer or not offer work, and whether that is what actually happens
- the employee can accept or reject work, and whether that is what actually happens
- it is reasonably likely there will be future work of the kind the employee usually performs
- there are full-time or part-time employees doing the same kind of work in the business
- the employee works a regular pattern, even one that changes over time
No single factor decides the question, and not all of them need to be satisfied.
Does a regular roster make you permanent?
No, not on its own. This is the most common misunderstanding about casual employment. An employee can work the same shifts every week for years and still be a casual, provided there is genuinely no firm advance commitment to ongoing work. A regular pattern of work is one factor among many, not a trigger that automatically converts someone to permanent.
That said, a long, unbroken and highly predictable pattern of work is exactly the kind of evidence that supports a claim under the employee choice pathway. See Can a long term casual become permanent? below.
What are casual employees entitled to?
What casuals do get under the NES
Under the National Employment Standards, casual employees are entitled to:
- a casual loading, or a specific casual pay rate, set by the relevant award, agreement or contract
- two days of unpaid carer’s leave per occasion
- two days of unpaid compassionate leave per occasion
- 10 days of paid family and domestic violence leave per year
- unpaid community service leave, which covers jury service
- superannuation, on the same basis as permanent employees
- a pathway to permanent employment through the employee choice pathway
Casual employees can also request flexible working arrangements and take unpaid parental leave, provided they have been employed on a regular and systematic basis for at least 12 months and reasonably expect that to continue.
All casual employees are covered by the general protections in the Fair Work Act, including protection against discriminatory termination, and by the anti-discrimination legislation in every state and territory. In some states and territories, long-serving casuals are also eligible for long service leave.
What casuals do not get
Under the NES, a casual employee is not entitled to:
- paid annual leave
- paid personal or carer’s (sick) leave
- paid public holidays they do not work
- paid jury service
- notice of termination
- redundancy pay
This remains the case no matter how long or how regularly the person has worked.
Do casual employees get annual leave?
No. Casual employees do not accrue paid annual leave. This is the single most-asked question about casual employment in Australia, and the answer has not changed: the casual loading exists precisely because casuals do not receive paid leave.
Do casual employees accrue annual leave?
No. There is no accrual and no balance building up in the background. If a casual employee later becomes permanent, they begin accruing annual leave from the date the change takes effect, not retrospectively for the period they worked as a casual.
Do casual employees get sick leave?
No. Casuals are not entitled to paid personal or carer’s leave. They can take two days of unpaid carer’s leave per occasion to care for an immediate family or household member, and they are entitled to 10 days of paid family and domestic violence leave each year.
In practical terms, a casual who is unwell simply declines the shift. A casual is entitled to decline work, and cannot lawfully be penalised for doing so.
What about public holidays?
A casual is not paid for a public holiday they do not work. If a casual does work a public holiday, the penalty rate in their award or agreement applies. A casual can also refuse a request to work a public holiday where the refusal is reasonable.
What is casual loading and why is it 25%?
Casual loading is an additional percentage added to the base hourly rate to compensate a casual employee for the entitlements they do not receive: annual leave, sick leave, public holidays, notice and redundancy pay.
It is most commonly 25%, but that figure is not set by the NES. It comes from the relevant modern award, enterprise agreement or employment contract, so the correct step is always to check the instrument that covers the role.
How to calculate casual loading
The loading is applied to the base hourly rate:
Calculation | Result | |
Base hourly rate | $30.00 | |
Casual loading at 25% | $30.00 × 0.25 | $7.50 |
Casual hourly rate | $30.00 + $7.50 | $37.50 |
When the loading is not 25%
Some awards set a different percentage, and some set a specific casual rate rather than a loading. Awards also differ in how the loading interacts with overtime and penalty rates. In some, penalties are calculated on the base rate and the loading is added separately; in others they compound. If you need certainty for a particular role, the Fair Work Ombudsman’s Pay and Conditions Tool will give you the minimum rate for your award.
Casual vs permanent employees: entitlements compared
Entitlement | Casual employee | Full-time / part-time employee |
Base hourly rate | Award or agreement minimum | Award or agreement minimum |
Casual loading (commonly 25%) | Yes | No |
Paid annual leave | No | Yes, 4 weeks per year, pro rata |
Paid personal / carer’s (sick) leave | No | Yes, 10 days per year, pro rata |
Unpaid carer’s leave | Yes, 2 days per occasion | Yes, once paid leave is used up |
Compassionate leave | 2 days unpaid per occasion | 2 days paid per occasion |
Paid family and domestic violence leave | Yes, 10 days per year | Yes, 10 days per year |
Community service leave (incl. jury service) | Unpaid | Unpaid, with make-up pay for jury service |
Paid public holidays not worked | No | Yes |
Notice of termination | No | Yes |
Redundancy pay | No | Yes, if eligible |
Superannuation | Yes | Yes |
Guaranteed, predictable hours | No | Yes |
Unpaid parental leave | Yes, if regular and systematic for 12+ months with a reasonable expectation of ongoing work | Yes, after 12 months |
Request for flexible working arrangements | Yes, on the same 12-month regular and systematic basis | Yes, after 12 months |
Pathway to permanent employment | Yes, via the employee choice pathway | Not applicable |
Unfair dismissal protection | Yes, if regular and systematic with a reasonable expectation of ongoing work, after the minimum employment period | Yes, after 6 months (12 months in a small business) |
Long service leave | In some states and territories for long-serving casuals | Yes, state and territory dependent |
Casual vs permanent employee entitlements in Australia, current as at July 2026.
What rights do casual employees have at work?
The right to refuse shifts
The ability to accept or decline offered work is central to what makes employment casual. A casual employee can turn down a shift, and doing so is not misconduct. If an employer treats declining shifts as a disciplinary matter, that is a strong indicator the relationship may not genuinely be casual.
Unfair dismissal and general protections
Casuals are not entitled to notice of termination or redundancy pay. However, a casual who has been employed on a regular and systematic basis with a reasonable expectation of continuing employment can lodge an unfair dismissal claim once they have completed the minimum employment period: six months, or twelve months if the employer is a small business.
General protections claims are different and stronger. They cover adverse action taken because an employee exercised a workplace right, and they apply to casual employees from the first day of employment.
Protection against sham casual arrangements
It is illegal for an employer to knowingly make a false statement to persuade a current or former permanent employee to move onto a casual contract doing substantially the same work, or to dismiss or threaten to dismiss an employee in order to re-engage them as a casual. Courts can impose civil penalties for these arrangements.
Superannuation, long service leave and workers compensation
Casual employees are entitled to the superannuation guarantee on the same basis as permanent employees. Workers compensation coverage applies to casuals. Long service leave for long-serving casuals depends on the legislation in each state and territory.
Can a long term casual become permanent?
Yes. Since 26 August 2024, casuals no longer have to wait for an employer to offer conversion. Under the employee choice pathway, a casual who has been employed for at least six months (twelve months if the employer is a small business) and who believes they no longer meet the casual employee definition can give their employer written notice asking to move to full-time or part-time employment.
The employer must consult with the employee about what would change, then respond in writing within 21 days. An employer can only refuse on limited grounds:
- the employee still meets the definition of a casual employee
- there are fair and reasonable operational grounds, such as substantial changes to how work is organised, significant impacts on the business, or changes needed to avoid breaching an award or agreement
- accepting would mean the employer could not comply with a recruitment or selection process required by law
Employment before 26 August 2024 does not count towards the eligibility period. Casuals who were already employed immediately before that date became able to give notice from 26 February 2025, or from 26 August 2025 if their employer is a small business.
Read the full guide: casual conversion rules in Australia: eligibility, notice periods and employer obligations.
What happened to “regular casual employee” conversion?
Under the older rules, employers had to offer permanent employment to casuals who had worked a regular pattern of hours for 12 months, and casuals could request conversion. Those pathways were transitional and stopped being available after 26 August 2025. Conversion is now employee-initiated through the employee choice pathway.
The phrase “regular and systematic” still matters, just not for conversion. It remains the test for whether a casual can claim unfair dismissal, take unpaid parental leave, or request flexible working arrangements.
What are the benefits of casual employment?
Casual employment exists because it genuinely suits some people and some operations. It is worth being clear-eyed about the advantages on both sides.
For employees
- Higher hourly pay through the casual loading
- Genuine flexibility: the ability to accept or decline shifts around study, caring responsibilities or another job
- Variety and exposure: experience across different sites, systems and cultures, which builds a stronger resume faster than a single-site permanent role
- A route into a business: many permanent hires start as casuals, and a casual assignment is an extended, paid demonstration of what you can do
For employers
- Responsiveness: the ability to scale staffing up and down with demand rather than carrying fixed headcount through quiet periods
- No leave liability accruing on the balance sheet
- Administrative simplicity compared with managing leave balances and accruals across a large variable workforce
- A practical trial period for roles where cultural and physical fit are hard to assess in an interview
The trade-off is real on both sides. Employees give up income certainty and paid leave. Employers pay a premium per hour and accept that a casual can decline the shift they most need covered. Understanding how temporary and permanent work compare is the starting point for getting the mix right.
Casual employment FAQs
Do casual employees get annual leave in Australia?
No. Casual employees do not accrue paid annual leave. Instead they receive a casual loading, commonly 25% of the base hourly rate, which compensates for annual leave, sick leave, notice of termination and redundancy pay. If a casual converts to permanent employment, they begin accruing leave from the date the change takes effect, not retrospectively.
Do casual employees get sick pay?
No. Casuals are not entitled to paid personal or carer’s leave. They can take two days of unpaid carer’s leave per occasion, and they are entitled to 10 days of paid family and domestic violence leave each year. A casual is also free to decline a shift when unwell and cannot lawfully be penalised for doing so.
What is casual loading and how much is it?
Casual loading is an additional percentage added to the base hourly rate to compensate casuals for the entitlements they do not receive. It is most commonly 25%, but the exact figure is set by the relevant modern award, enterprise agreement or employment contract, so always check yours. On a base rate of $30.00 an hour, a 25% loading produces a casual rate of $37.50 an hour.
Do casual employees get paid more than permanent employees?
Per hour, usually yes, because of the loading. Over a year, not necessarily. A permanent employee on the same base rate receives four weeks of paid annual leave, ten days of paid sick leave, paid public holidays, notice of termination and, if their role is made redundant, redundancy pay. The loading is the trade-off for all of that, plus the guarantee of ongoing hours.
Can a casual employee be sacked without notice?
Casuals are not entitled to notice of termination or to redundancy pay. However, a casual employed on a regular and systematic basis with a reasonable expectation of continuing employment can lodge an unfair dismissal claim once they have completed the minimum employment period of six months, or twelve months in a small business. General protections claims apply to casuals from the first day of employment.
How long can you stay a casual employee?
There is no legal maximum. An employee who starts as a casual stays a casual until they accept an alternative offer of permanent employment, change to permanent under the NES, an award or an agreement, or a Fair Work Commission order changes their status. Length of service on its own does not automatically convert someone to permanent.
Can a long term casual become permanent?
Yes, through the employee choice pathway. If you have been employed for at least six months (twelve months in a small business) and you believe you no longer meet the casual definition, you can give your employer written notice. They must consult you and respond in writing within 21 days, and can only refuse on limited grounds. See our full guide to casual conversion rules in Australia.
Do casual employees get public holidays?
Casuals are not paid for public holidays they do not work. If a casual works a public holiday, the penalty rate in their award or agreement applies. A casual can refuse a request to work a public holiday where the refusal is reasonable.
Do casual employees get superannuation?
Yes. The superannuation guarantee applies to casual employees on the same basis as permanent employees.
Looking for casual work, or casual staff, in Sydney?
If you are looking for work: Impact HR Group places casual, temporary and permanent team members across warehouse, manufacturing, logistics and office roles every week. Browse our current casual and temp roles. If you are moving on from a current role, our guide to writing a resignation letter will help you leave on good terms.
If you are an employer: getting the casual mix right is a workforce design question, not just a rostering one. We help businesses cover demand compliantly through flexible casual and temporary staff and labour hire arrangements, with the loading, conversion and compliance obligations handled properly.
Talk to our team about what fits your operation.
