Casual work is common in New Zealand. Many people take casual jobs in hospitality, retail, farming, construction and event-based industries. Casual work can be useful if you want flexibility. It can also create confusion, especially when the job turns out to be more regular than expected.
If you are told you are a casual employee or you are unsure what your rights are, this article explains how casual work should operate in New Zealand. It also explains what to do if your job does not seem genuinely casual.
What Casual Employment Means in New Zealand
New Zealand law does not contain a strict definition of casual employment. Instead, we rely on guidance from Employment New Zealand and the decisions of the Employment Relations Authority.
A genuine casual contract NZ arrangement works like this:
- You work only when the employer offers you work
- You can turn down any shift
- You have no guarantee of ongoing work
- You have no regular pattern of hours
- Your work may stop and start with long breaks in between
Each time you accept a shift, a new period of employment begins. When the shift ends, that period of employment ends. There is no automatic promise of more work.
If your work looks regular or predictable, your job may not be casual even if your agreement uses the word.
How Casual Employment Differs From Part-Time Work
Part-time employees work fewer hours than full-time workers, but they still have guaranteed and regular hours. They have an ongoing employment relationship.
Casual employees do not have regular or guaranteed hours. They are meant to work only when needed and only when they choose to accept a shift.
If you are working the same days or hours every week, this is a strong sign of part-time work rather than casual work.
Casual Employment Compared With On-Call Arrangements
Some workers are told they are casual, but their situation is actually on-call.
An on-call worker must be available to work when the employer needs them. They may also receive an allowance for being available. Most on-call employees cannot decline work without consequences.
A casual worker can decline work at any time. They do not receive an allowance and they do not have to remain available.
If you must be ready to work at short notice or you feel you are not free to turn down a shift, you may not be a casual employee.
Signs That You Might Not Be a Casual Employee
In many cases, the employment agreement does not match the reality of the job. Even if the agreement says you are casual, what matters is the actual working pattern.
You may not be a casual employee if:
- You are rostered in advance
- You work regular days or hours
- You must ask permission if you cannot work
- Your employer expects you to accept shifts
- You work most weeks without major gaps
- You are essential to the daily operation of the workplace
Community Law makes it clear that the true nature of the job comes from what happens in practice.
If you have worked regular hours for several weeks or months, you may be a permanent part-time employee. Permanent employees have stronger rights, including notice periods and security of hours.
Your Rights Under a Casual Contract NZ
Casual employees have many of the same rights as permanent employees. The main difference is how leave and holiday pay work.
Rest and Meal Breaks for Casual Workers
Casual employees have the same break rights as all other employees. Your employer must give you the correct rest and meal breaks for the hours you work.
Minimum Wage for Casual Employees
You must be paid at least the minimum wage for every hour you work.
Annual Holiday Pay for Casual Employees
Casual employees often receive holiday pay as an extra 8 percent on top of their usual pay. This is called pay as you go. It is only allowed when:
- Your work pattern is irregular or intermittent
- It is not practical for your employer to give you four weeks of paid annual holidays
- You have agreed to it in your employment agreement
- The holiday pay is shown clearly and separately on your payslip
Some casual employees are incorrectly put on pay as you go. If your work is regular or ongoing, you may be entitled to four weeks of paid annual holidays each year instead.
Sick Leave, Bereavement Leave and Family Violence Leave for Casual Workers
Casual employees can qualify for these types of leave after six months if they meet both of these conditions during a six month period:
- They worked an average of at least ten hours per week
- They worked at least one hour each week or 40 hours each month
If you qualify, you are entitled to the same leave as permanent employees.
Public Holidays for Casual Workers
Casual employees are paid time and a half if they work on a public holiday.
To receive an alternative holiday, the public holiday must be a day you would have otherwise worked. Casual employees do not usually have otherwise working days. However, if you have been working regular shifts on a certain day, you may qualify.
How Employment Agreements Work for Casual Employees
A casual employment agreement must make the nature of the job clear. The agreement should say:
- There is no guarantee of work
- Hours will vary
- You do not have to accept work
- How the employer will offer you work
- That each shift you accept is a new period of employment
It must also include all mandatory clauses that every employment agreement in New Zealand must have. These include pay, hours, public holiday entitlements and how problems in the workplace will be resolved.
If your agreement does not explain the casual nature of the job clearly, this is a warning sign.
What Happens When Casual Work Becomes Regular
If you start off as a casual employee but your work becomes regular and ongoing, your job may shift to permanent employment. When this happens, your employer must:
- Give you a new employment agreement
- Stop pay as you go if it was being used
- Review your leave and holiday entitlements
A casual employee cannot be refused shifts for no reason once they have become permanent. If your employer tries to stop giving you work after you have become permanent, this may be an unlawful dismissal.
Ending Casual Employment
A casual employee usually does not need to give notice if they decide not to accept more shifts. If you have already accepted a shift, you may need to follow the notice terms in your agreement.
An employer can stop offering shifts at any time if the work is genuinely casual. However, they cannot send you home partway through a shift without good reason. Doing so may be considered a dismissal during a period of employment.
If your employer claims you are casual to avoid a proper process, you may have grounds to challenge the decision.
If You Think You Have Been Misclassified as Casual
Misclassification is common in New Zealand. Many employees are called casual even when they have become permanent through regular work.
If you are unsure, ask yourself:
- Do I have regular shifts
- Am I expected to be available
- Do I feel pressured to accept work
- Do I go for long periods without work
- Does my working pattern look like other permanent employees
If the pattern of your job suggests permanence, you may not be casual at all.
Need Help Understanding a NZ Casual Contract or Your Rights?
Casual work can be confusing. Employers sometimes get it wrong, and employees often do not realise how many rights they have.
If you think your contract has been used incorrectly or you have been treated unfairly, My Advocate can help. Our team supports employees through workplace issues and can explain your options in clear and practical terms.
Contact My Advocate today if you need advice on a casual contract, regular work patterns, holiday pay, shift issues or a possible dismissal. You do not have to face these problems alone.