Tue. Jul 23rd, 2024
difference between Labor hire and casual employment

New license conditions for employment agencies from 1 October 2020

Employment law can be extremely complex, there are rules regarding the hiring process, and a lot more rules surrounding firing. That’s why it’s important that all businesses consider their options carefully and speak to an employment lawyer when necessary.

It’s also a good reason to consider and understand the differences between labor hire and casual employment.

Labor Hire

Labor hire generally refers to the hiring of workers through another company. In other words, you’re creating a contract with a third-party for them to supply you with the help you need.

Using a reputable labor hire firm allows you to increase your staffing levels when needed without the hassle of the traditional hiring and firing process.

Many people like to work for agencies as this can be a way to a more permanent job. It can also be a good method of undertaking a variety of tasks and avoiding boredom.

The labor hire worker reports directly to you and you must treat them the same as any employee. They are entitled to rest breaks, time off, and any other benefits.

But, their contract is not with you. While you have to treat them equally, you don’t pay them. Instead, you pay the agency which pays the labor hire worker. The agency sorts holiday pay and provides a different worker if one is off sick or on holiday.

For the employer, it’s an easy way to increase the workforce to meet deadlines. The labor hire worker gets the stability of an income through the agency with the associated benefits. It can be a good option in a volatile market.

Casual Employees

The clue here is in the name, employee. Casual employees are still employees but they are usually used on a casual basis. This means they may start with a zero-hour contract, allowing you to call them in as and when you need to.

But, they are still employees and must be given the same rights and treatment as any other employee. This is a requirement by law.

The obvious benefit is that you can bring them into your workplace as needed and know that they are already trained in your processes.

Casual employees can also be those that are taken on for a limited period, such as a seasonal boost to your workforce. Again, these employees still have the same rights and benefits as your full-time permanent employees.

Thoughts To Remember

Casual employees and labor hire staff are likely to be with you for a limited period. But that doesn’t mean you can dismiss them whenever you like. You must still follow your standard process.

While a labor hire worker can be terminated at any time without penalty because you are simply ending a contract with the hiring agency. A casual employee must be given notice and, if they’ve been employed regularly and systematically, or for more than 6 months, they are protected from unfair dismissal.

That means you need to tread carefully and take advice before getting rid of any employee that’s been with you more than 6 months, casual or not.

By Pankaj sharma

Pankaj Sharma is a professional blogger with 5 years of experience. He covers topic like business, education, travel and entertainment stuff with fun. He's continued blogging and keep on inspiring other bloggers for the living.

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