Many employers use the term “casual” thinking it simply means flexible. But the Employment Relations Authority looks at reality, not labels.
A genuinely casual employee:
- works only when needed
- can accept or decline each shift
- has no ongoing expectation of work
- is engaged for discrete, one‑off periods
Where employers get caught out is when “casual” staff quietly become part of the weekly rhythm — regular hours, advance rosters, or reliance on them to keep operations running. At that point, they’re often permanent, regardless of what the written agreement says.
A recent case (Stevenson v Mountain Chalets, 2025) is a good reminder: a cleaner labelled “casual” worked a steady 20–25 hours, Monday to Thursday, for years and was paid for those hours and 8% holidays every week. When her hours were reduced and told she should look for more hours elsewhere a personal grievance was raised which ended up in the Employment Relations Authority.
The Authority looked at the reality over labels: regular hours, ongoing work, and mutual expectations. The Authority’s finding was that the cleaner was a permanent part‑timer, not casual and awarded $8,000 for hurt and humiliation, and required back‑payment of annual leave despite the 8% already paid for the years she had worked for the employer. Yes, that’s right, the employer essentially had to pay holiday pay twice.
Quick checklist (use, don’t lose):
Some Do’s
- Use casual agreements for genuinely intermittent or seasonal peaks with no commitment either way. Spell out that each offer of any work is a separate engagement and either party can say no.
- Watch patterns. If hours solidify or become more regular, review your staffing structure for adding a permanent role or fixed term if the need is only for a short defined term.
- Keep an eye on leave and holiday settings, true ‘casuals’ can still develop entitlements and 8% pay as you go is only meant for certain situations.
- If a casual is working then treat any early termination like a dismissal — follow a fair process and have good reason. (Ending a future engagement is different.)
And some Don’ts
- Don’t roster regular shifts weeks ahead and still call the employment ‘casual’.
- Don’t cut a “casual’s” established hours without consultation if they’ve become regular. That can be an unjustified disadvantage
- Don’t default to 8% holiday pay for long‑running, regular work — that invites Holidays Act compliance issues.
Remember, reality beats the label. If your “casual” is becoming part of the furniture, tidy it up before it cleans you out. As always, if you are unsure, please give us a call. A 10 minute chat with one of our team could save you a world of pain and cost.