Understanding Casual Employment in New Zealand
Hiring casual staff to cover peak times or seasonal surges is common practice—but it’s important to know their rights and your responsibilities.
Casual vs Part-Time Employment: What’s the Difference?
Although New Zealand employment law doesn’t provide a strict legal definition of a casual employee, the term generally refers to someone who:
- Has no guaranteed hours or set days,
- Works on an as-needed basis,
- Has no ongoing expectation of work.
In contrast, part-time employees work regular hours and are entitled to more consistent employment rights. Some workers referred to as “casual” may in fact meet the criteria of part-time status.
Casual Employment Agreements: What to Include
Every casual employee must have a written employment agreement. This document should clearly outline:
- The nature of casual work (irregular hours, variable workloads),
- How work will be offered and accepted,
- That the employee isn’t required to accept every shift offered,
- That there is no obligation on the employer to provide ongoing work.
Including these clauses ensures expectations are clear and legally sound.
Ending a Casual Work Arrangement
Each time a casual employee agrees to work, it forms a short-term employment period. If you choose not to offer future shifts, this isn’t considered a dismissal. As there’s no obligation to continue offering work, the employment relationship simply does not continue.
Leave Entitlements for Casual Workers
Because casual workers don’t have set hours, giving them paid annual leave may not be practical. Instead, you can choose to pay an additional 8% holiday pay on top of their hourly rate, clearly stated in their employment agreement.
After six months of regular work, casual employees may qualify for:
- Sick leave, and
- Bereavement leave,
…if they’ve worked at least 10 hours per week on average, including at least one hour per week or 40 hours per month.
When Does a Casual Role Become Permanent?
If a casual employee begins to work consistent hours over a regular schedule, and they come to expect ongoing work, their status may shift to permanent (part-time or full-time). In such cases, they may be legally entitled to the protections and benefits of a permanent employee.
