The difference between ongoing, maximum term and casual employment

What is ongoing employment?

Ongoing employment is where employment continues indefinitely (on either a full time or part time basis) – until either party terminates it.  

Ongoing employment is also referred to as ‘permanent employment’. 

Ongoing employment can be terminated either on notice or immediately in the event of serious misconduct.  

The National Employment Standards (or an applicable enterprise agreement or modern award) set out the minimum notice period required.  

However, an employee and employer can contractually agree to a longer notice period.  For example, it is common for senior employees to have notice periods of 1 to 6 months. 

What is maximum term employment?

Maximum term employment is where employment continues (on either a full time or part time basis) until a specific date, period of time or event – unless either party terminates employment earlier. 

Maximum term employment is also referred to as ‘outer time limit’ or ‘maximum duration’ employment. 

However, maximum term employment is very different to fixed term employment.  

Fixed term employment does not permit employment to end earlier than the specific date, period of time or event except in the event of serious misconduct.  As such, it is inflexible and employers generally avoid it. 

What is casual employment?

Casual employment under section 15A of the Fair Work Act is where the employee accepts an employer’s offer of employment without a firm advance commitment to continuing and indefinite work in accordance with an agreed pattern of work.

To assess if an employer’s offer includes a firm advance commitment to work, only the following must be considered:

1. If the employer can choose to offer the employee work, and if it’s the employee’s choice to work or not.
2. If the employee will be offered work when the business needs them to work.
3. If the employment is described as casual.
4. If the employee is paid a casual loading or a specific pay rate for casual employees.

At common law, casual employment is expressed as ‘the absence of a firm advance commitment as to the duration of the employee’s employment or the days (or hours) the employee will work’: Hamzy v Tricon International Restaurants trading as KFC [2001] FCA 1589, [38].

A casual employee’s work also starts at the commencement of their shift and terminates at the end of their shift.  

What are casual employees entitled to?

Casual employees have different entitlements to ongoing employees.  

Most importantly, casual employees are generally entitled to a 25 percent casual loading.  

Further, casual employees are not:

• Entitled to paid personal or paid annual leave.
• Entitled to redundancy pay. 
• Required to provide notice to terminate their employment.

That said, casual employees are entitled to:

• 2 days of unpaid carer’s leave on each occasion.
• 2 days of compassionate leave on each occasion.
• 10 days of family and domestic violence leave (or 5 days with small business employers).
• Unpaid community service leave.
• Casual conversation in certain circumstances.
• Request flexible working arrangements and unpaid parental leave if they:
  • Have 12 months’ regular and systematic employment, and
  • Reasonably expect to continue regular and systematic employment.