As an employer, we know that you want to find the best way to meet the needs of your business while also providing flexibility for your employees. You’re just awesome like that! Our thoughts? Casual employment may be the perfect solution! In this blog, we'll explore what casual employment is, how it benefits both employers and employees and how to ensure proper protection for intellectual property and confidential information. Let’s go!
What is Casual Employment?
Casual employment is a type of employment where there is no guaranteed amount of hours, and the employee is paid an hourly rate that includes casual loading. Casual employees are hired on an as-needed basis, which can be beneficial for employers who have fluctuating business demands or seasonal work. It follows the ebb and flow of your biz needs. Make sense?
What is Casual Loading?
Casual loading is an additional percentage of pay that is given to casual employees to compensate for not having access to benefits like sick leave, annual leave, or long service leave. They need to get some kind of extra love to know how much you care, right? According to the Fair Work Ombudsman, where an employee receives the national minimum wage, they are entitled to receive a casual loading rate of 25% of their hourly rate. The casual loading rate may vary depending on the industry and/or award.
Protecting Intellectual Property
Casual employees can be a valuable asset to a business, and they may even create (some awesome!) intellectual property during their employment. Intellectual property can include anything from a new marketing campaign to a new product design. So how do you keep that protected if an employee is casual? To protect your business's intellectual property, it's still essential to have a proper employment contract in place (even for the casual team) that outlines who owns the intellectual property created during the employment period.
Confidentiality
Casual employees may also have access to confidential information, such as customer lists or trade secrets. To protect your business's confidential information, it’s essential to have a confidentiality clause in your employment agreement. The confidentiality clause should outline what information is confidential and the consequences of breaching the agreement. Cage match with a cockatoo? No more vegemite toast for life? You get those clauses sorted so these *shudder* awful things don’t have to come to pass.
Rates of Pay
The rates of pay for casual employees vary depending on the industry and the specific job. It’s important to ensure that you’re paying your casual employees the correct rate of pay for their job and industry. The Fair Work Ombudsman provides guidelines for minimum rates of pay, which can be helpful when determining pay rates.
No Restraint of Trade
It’s not common for casual employees to have a restraint of trade clause in their employment contract. This is because casual employees are not considered to have a strong connection to the business and may work for multiple employers simultaneously. However, if you feel that a restraint of trade clause is necessary, it’s important to consult with a lawyer to ensure that the clause is enforceable and reasonable. Fair is fair.
TOP TIP: Focus on protecting your confidential information and intellectual property.
Key Takeaways
Casual employment can be a beneficial arrangement for both employers and employees. Casual loading compensates employees for not having access to benefits, and a proper employment contract can protect your business's intellectual property and confidential information. It’s important to ensure that casual employees are paid the correct rate of pay and that any restraint of trade clause is enforceable and reasonable. Clear as a bell, right?
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***Disclaimer. Please read!!***
This article is for general information purposes only and should be used solely as general guidance. It does not and is not intended to represent legal advice or other professional advice.
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