Casual employment - record keeping obligations

Casual employment refers to a work arrangement where employees are typically engaged on an as-needed basis without a firm commitment to ongoing work. However, employers must still adhere to specific legal requirements, including record keeping, to ensure compliance with the legislation. 

This is a great opportunity to remember the key features which constitute casual employment such as:

• Flexibility
   - casual employees often work irregular hours based on the employer’s needs
   - they usually do not have guaranteed hours of work
• No long-term commitment
   - casual employment generally lacks a long-term expectation of continuity
• Higher pay (casual loading)
   - casual employees receive a higher hourly rate compared to permanent employees (called casual loading) to compensate for the lack of benefits such as paid leave 
• Rights and benefits 
   - a safe work environment
   - protection against unlawful termination
   - anti-discrimination protections
   - entitlement to request permanent part-time or full-time work if they work regular and predictable hours over a long period of time

Employers have an obligation to maintain accurate and detailed records for all employees, including casual workers. Such records should include the following:

• Employment details
   - employees full name, address and contact details
   - employment start date
   - nature of employment (eg casual)
   - bank details
   - emergency contact details
   - rights to work in Australia
• Hours worked
   - time records for each shift, including start and end times
   - breaks taken (if applicable)
• Wages and payments
   - hourly rate, including casual loading (if applicable)
   - gross and net pay for each pay period
   - deductions made from wages
   - superannuation contributions (where applicable)
• Leave entitlements (if relevant)
   - for long-term casuals, records of other accrued entitlements such as long service leave
• Agreements and communication
   - any contracts, agreements or correspondence outlining terms and conditions of employment
   - communication regarding changes in hours, pay rates or status (eg offers to transition to permanent roles)
• Tax and compliance
  - tax file numbers and other tax-related documentation
  - compliance with state and national employment laws

Employers are legally required to provide payslips to employees, including casual workers. Payslips ensure transparency, helps employees understand their pay and entitlements, helps employees track their earnings and verifies they have been paid correctly. It protects employers by demonstrating compliance with wage laws and serves as evidence in case of pay disputes or legal claims. A payslip must clearly outline key details about the payment period and the employee’s earnings. Requirements include:

• Employer’s and employee details
   - employers name and ABN (Australian business number) or equivalent
   - employees name
• Date information
   - date of payment  
   - pay period – start and end dates of the period the payment covers
• Pay breakdown
   - gross pay – total earnings before deductions
   - net pay- total earnings after deductions
   - hourly rate – for casual hours, this should include any casual loading (if applicable)
   - hours worked - total hours worked in the pay period
   - overtime or penalty rates (if applicable)
• Deductions
   - taxes (eg income tax withholding)
   - union fees or other authorised deductions
• Superannuation contributions
   - superannuation fund name
   - contribution amount for the pay period
• Leave information (if applicable)

Payslips must be provided within one working day of pay day and can be delivered in electronic format (eg email) or hard copy, depending on the agreement with the employee.

There are common issues to watch for when reviewing the information on a payslip such as, missing casual loading, incorrect hours and rates or deductions without explanation. An employee has the right to raise these issues with you if they feel their payslip is unclear or incorrect. If any issues are not resolved, then they can contact the Fair Work Ombudsmen.

The Workplace Relations Team at AMA Queensland is here to assist you if you have any questions regarding the above, reach out to us on 07 3872 2264 or email at workplacerelations@amaq.com.au