Are temporary employees eligible for benefits?
Temporary workers play a pivotal role in the New Zealand workforce. Although permanent staff are essential, businesses and organisations depend on workers such as consultants and freelancers based on specific needs for limited periods. Temporary employees are required for various projects across various industries.
Hays NZ recruits contingent and temporary workers across a diverse range of industries and job types.
Let's understand more about temporary employees and what benefits they're entitled to.
What is temporary employment?
Temporary employees are often hired for a fixed period or the scope of a specific project. Usually, their employment is terminated after a stipulated time. Depending on the nature of their hire, their employment can range from a few days to several months or even longer. Although temporary workers don't receive the same benefits as permanent workers, they are still entitled to some privileges.
The benefits that a temporary employee is entitled to differs from country to country. For example, health insurance or other health benefits. In New Zealand, temporary workers are entitled to certain benefits.
What types of temporary employment are there?
"Temporary employees" is an umbrella term for the contingent workforce. It normally refers to employees who are hired on a short-term basis. Where full time and part time employees are considered permanent staff, temporary workers are part-time and make up the contingent workforce.
Independent contractors
Independent contractor is another term to describe a type of employment where an employee will work for a company on a needs basis and would not be employed in a permanent position. Many types of independent contractors include freelancers, consultants, and gig workers.
Gig workers
Gig workers are staff hired primarily for concerts or music festivals. Some shows and festivals need recruitment assistance, as they try to hire en masse for short-term periods
Seasonal employees
Seasonal employees are hired to fulfil temporary jobs based on the needs of a specific season. For example, employing agricultural workers during harvest season or hiring additional retail staff in anticipation of the busy Christmas shopping months of November and December.
Consultants
Consultants are expert workers that are hired to provide specific expertise and insights into in a niche industry. They are often hired on a project basis.
Casual employees
Casual employees are allocated shifts according to the needs of their employer. Their hours are generally irregular. Examples of casual employees include retail store assistants, hospitality staff, or those who do shift work on the weekends.
What is a casual employee?
A casual employee is a temporary worker who works irregular hours. They do not receive paid sick leave or annual leave. They can also end the contract without notice. As outlined in the Fair Work Act 2009, casual workers are not entitled to paid sick leave or annual leave, but there are other benefits they can acquire.
What are some benefits that casual workers may be entitled to?
Superannuation
Although it is assumed that all full-time employees will earn super, it is worth noting that casual employees are also entitled to superannuation, once they meet the following criteria:
- Must be over 18 years old
- Earn more than $450 in a calendar month
Employers must make superannuation contributions to casual workers if they meet the threshold to be eligible. Superannuation is the term used to describe a retirement savings system in Australia where an employee accumulates contributions to build up a savings fund for retirement.
Casual loading
While temporary positions benefit from annual leave, some temporary workers and casuals can earn casual loading. Casual loading is the term used to describe how casuals receive a higher hourly rate than their permanent employees.
The casual loading exists to compensate for the lack of employee benefits such as paid sick and annual leave. The casual loading rate is usually around 25%, which can vary.
Flexible work arrangements
One of the best benefits of working casually is the flexible work arrangements, where work hours vary based on employer needs and personal availability. These flexible working arrangements are ideal for balancing other commitments like studies or family. For example:
- A student may work 10 hours one week during exams and increase to 20 hours during holidays
- Example: A parent might work evenings or weekends to accommodate childcare schedules
Overtime and penalty rates
Casual employees still earn overtime and penalty rates depending on the applicable award or enterprise agreement they are on. These rates exceed the standard hourly rate and apply to work outside regular hours.
For example, a temporary worker might earn overtime or penalty rates for weekends, public holidays, and late-night shifts.
While most permanent positions will have days like public holidays off, most casual workers will be contracted to work those in industries that run during those hours such as retail or hospitality.
Looking to hire casual employees?
If you are looking to hire temporary workers for a season or project, consider availing of expert recruiters like Hays NZ. We have helped numerous organisations retain top talent. Recruiters can help offer permanent jobs to many proficient workers to bolster an organisation's strength and value.
With branches nationwide, find your nearest Hays office or register a vacancy today.