In a recent case an employer was forced to pay significant amounts to a former employee which would have been avoided by having a proper contract of employment and correct payslips. In this case a former disgruntled casual employee claimed she was actually part-time and not casual. The employer was forced to make good annual leave and sick leave payments dating back a number of years as they did not have a contract of employment or proper pay slips detailing the casual nature of the relationship, and that the casual loading was paid. We recommend clients always, in the least:
- Have a contract of employment setting out the relationship is casual, will remain casual and what the rate of pay is including casual loading.
- Provide pay slips which clearly set out the payment of casual loading, amongst the other required matters (note payslips must be provided).
- Check any relevant award as most indicate an employee cannot be classified as casual if they have relatively fixed or predictable hours of work.
We can help advise you on whether or not you are properly classifying your staff as casual, and to prepare contracts of employment which offer some protection from claims for back payment of annual leave and other entitlements due to incorrect classification.