Different Hours of Work Arrangements

In the case of direct employment arrangements (IEAs and CAs but not Independent Contractor Agreements) there are a number of typical arrangements covering hours of work and tenure:

Permanent Full Time

If the employment relationship is ongoing until terminated by the employee or the employer, the arrangement is described as permanent employment. While there is no legislated definition of full time work, around 35-40 hours per week usually constitutes full time hours of work. 

Note: Section 11B of the Minimum Wage Act specifies that every employment agreement must fix at not more than 40, the maximum number of hours (exclusive of overtime) to be worked in any week.  However, the hours may be fixed at a number greater than 40 if the parties agree. Where the maximum number of hours (exclusive of overtime) is not more than 40, the parties must endeavour to fix the daily working hours so that those hours are worked on not more than 5 days of the week.

Permanent Part Time

Part timers are permanent employees who usually work fewer than 35-40 hours per week.  Usually such employees work a regular pattern of a set number of hours on a set number of days per week. However, increasingly such employees work a variable pattern of hours and days according to a weekly roster published by the employer.

Part-timers generally enjoy the same employment benefits and protections (for example, leave entitlements) as full time staff, though in some instances this is on a pro rata basis.

Casual

Vape Merchant generally does not employ casual employees. However, where exceptional circumstances apply, a casual employment arrangement may be approved by your Regional Manager and Head Office.

Casuals are not permanent employees. A casual’s employment ceases at the end of each period they are engaged to work. They may be engaged for a few hours at a time, a few days in a week, or full-time hours for a week or two to cover an employee on leave. The casual is typically employed for a series of such engagements, therefore working in the business on and off over an extended period of time. Nevertheless, they do not have an ongoing relationship with the employer in the same manner as a permanent employee.

To be genuinely employed on a casual basis, an employee must only work on an irregular and intermittent basis. Where a so-called casual works a regular pattern or virtually full-time hours on an ongoing basis, they are likely to be regarded a permanent employee. In such cases, if the employer ceases to offer the employee work, there is a risk the employee may claim they were terminated unlawfully and/or claim back payment for other entitlements denied them as a casual employee, such as some leave entitlements.

Casuals are paid only for the time they work. 

Temporary or Fixed Term Employment

Temporary or fixed-term agreements are for situations where an employee is employed for a limited period of time, or to complete a specified task or project.

However, great care is required when entering into fixed term arrangements. There must be a genuine reason based on reasonable grounds for the fixed term and the employee must be advised of when or how their employment will end and the reasons for the employment ending in that way. Note: The Act specifically prohibits hiring an employee on a fixed term agreement to gauge their suitability for employment.

Genuine reasons for fixed term/temporary contracts could include the following:

  • To cover an employee on parental leave or other absence (for example, study leave or special leave without pay).
  • To undertake a specific project or work of a finite duration (for example, the implementation of an IT system).
  • To cover those situations where there is no guarantee of funding for the work beyond a specific period.
  • To cover a temporary increase in normal workloads (for example, seasonal fluctuations).

Attention must also be paid to the expiry date. If the employee is permitted to continue working past the expiry date, the employee may be deemed to have become a permanent employee.

Care is needed if an existing fixed term/temporary arrangement is to be renewed or extended. A genuine reason will need to exist at the time of the renewal or extension.

If the employer prematurely terminates a genuine fixed term agreement, the employer may be liable to pay the employee for the balance of the term of the agreement. This can be overcome by inserting a notice period in a fixed term agreement, but this also provides the employee with the ability to give notice to terminate the agreement before the stated expiry date. 

Flexible Working

The Act extends the right to request flexible working arrangements to all employees, not just those with caring responsibilities as was previously the case.  In this context “working arrangements” means hours, days or place of work.

An employee may make a request at any time, which must be in writing setting out certain information about the change proposed, including whether the change is to be permanent or temporary.   The employer must deal with a request as soon as possible but no later than one month after the request is made. 

The only grounds on which an employer may refuse a request are:

  • Inability to reorganise work among existing staff.
  • Inability to recruit extra staff.
  • Detrimental impact on quality.
  • Detrimental impact on performance.
  • Insufficiency of work during the periods the employee proposes to work.
  • Burden of additional costs.
  • Detrimental effect on ability to meet customer demand

    .

The employer’s response must also be in writing stating:

  • That the request has been refused because of a specified ground, and
  • The specified ground for the refusal, and
  • The reasons for refusal.

However, note that an employer must refuse a request if—

  • The request is from an employee who is bound by a collective agreement; and
  • The request relates to working arrangements to which the collective agreement applies; and
  • The employee's working arrangements would be inconsistent with the collective agreement if the employer were to approve the request.

Note that employees affected by family violence may request flexible working arrangements for up to 2 months in accordance with the Employment Relations Act 2000.

Read on about Probationary and Trial Periods or Generate the agreement or contract you need.