Reducing workforce risk: worker types and their entitlements

Reducing workforce risk is on the minds of most managers and HR leaders today.

In today’s changing business environment, more and more organisations are leaning on non-traditional workforce models, to get the job done. This means, a broader array of worker types now make up the tapestry of today’s workforce.

And with that comes a number of risks.

Especially around worker entitlements.

From full-time employees to casuals and contract workers, it’s in your interest – in fact, it’s your responsibility – to be across all types of workers in your organisation, and what they’re entitled to.

The thing is, this can be really confusing!

So today, we’ve taken the heavy lifting out of this complicated quagmire of worker information, which means reducing workforce risk becomes achievable and sustainable for your organisation.

reducing workforce risk

reducing workforce risk

Full-Time Employees

Full-time employees are typically not the problem when it comes to reducing workforce risk. Here are the key details for these workers:

  • usually works 38 hours each week (average)
  • can be a permanent employee or on a fixed-term contract
  • entitled to:
    • Annual, parental, and personal leave
    • Public holiday leave
    • Long service leave
    • Superannuation guarantee
    • usually entitled to written notice, or payment instead of notice, if their employer terminates their employment

Part-Time Employees

Part-time workers’ entitlements can sometimes be uncertain if you’re reducing workforce risk. Here are the key details for these workers:

  • works less than 38 hours (average)
  • usually works regular hours each week
  • can be a permanent employee or on a fixed-term contract
  • entitled to paid leave including annual, sick & carer’s leave
  • usually entitled to written notice, or payment instead of notice, if their employer terminates their employment
  • benefits similar to full-time employees but on a pro-rata basis to compensate for lesser working hours

Fixed-Term Contract

Contract worker entitlements is an area where organisations get worker classification wrong, limiting the opportunity for reducing workforce risk. Here are the key details for these workers:

  • typically employed for a specific period of time or task e.g. 6-month contract
  • different from permanent employees who are employed on an ongoing basis until the employer or employee ends the employment relationship
  • usually full-time or part-time employees
  • generally entitled to the same wages, penalties and leave as permanent employees
  • an award or registered agreement may provide extra terms and conditions for a fixed-term contract employee

Casual Employees

Casual employee entitlements are very specific. Read on so you’ll be able to reduce workforce risk. Here are the key details for these workers:

  • don’t have a firm commitment in advance from the employer about how long they will be employed for or the days (or hours) they will work
  • does not commit to all work an employer might offer. For example, works to a roster that could change and can refuse or swap shifts
  • has no guaranteed hours of work
  • usually works irregular hours
  • doesn’t get paid sick or annual leave
  • can end employment without notice, unless notice is required by agreement, award or employment contract
  • Casual employees are entitled to:
    • a higher pay rate than equivalent full-time or part-time employees. This is called a ‘casual loading’ and is paid because they don’t get benefits like sick or annual leave
    • 2 days unpaid carer’s leave and 2 days unpaid compassionate leave per occasion
    • 5 days of unpaid family and domestic violence leave (in a 12-month period)
    • unpaid community service leave

Probation

Here’s the need-to-know information on probation for your employees.  More key insights reducing workforce risk:

  • employers can put their employees on a probation period to assess if employees are suitable for the role and business
  • the employer decides on the length of the probation period, it can range from a few weeks to a few months at the start of employment
  • while on probation, employees continue to receive the same entitlements as someone who isn’t in a probation period
  • if hired on a full-time or part-time basis, an employee on probation is entitled to:
    • accrue and access paid leave entitlements such as annual leave and sick leave
  • if an employee doesn’t pass probation, they are still entitled to:
    • receive notice when employment ends
    • accumulated annual leave hours paid out.

For more information from the federal government on worker types and their entitlements, click here.

As one of the world’s leading providers of contingent worker management solutions, CXC is well positioned to optimise all elements of your contingent workforce engagement. With operations in more than 50 countries across five continents and decades of experience, we can assist with every aspect of your engagement.

If you would like to find out more about how we can help please contact us here.

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