Choosing the right type of staff is crucial for your business. Whether you need long-term help, temporary cover, or event-specific support, your hiring decision has legal and financial consequences. Hiring decisions should be based on the nature of the work, the duration of need, and your ability to meet the legal commitments that come with different staff types.
This article gives you an overview of the main staff options and the obligations you must meet.
Permanent employees
If you need staff on a long-term basis, hiring a full-time or part-time permanent employee is usually the most appropriate route. Bear in mind that:
i. permanent employees have the highest level of legal protection. This includes the right to holiday pay, statutory sick pay, a minimum notice period before dismissal and protection from unfair dismissal after two years. See Q&A here for the full range of rights to which they are entitled;
ii. you must provide them with a written statement of employment particulars and follow fair processes for disciplinary issues or termination; and
iii. you will have control over when and how the employee works; they are not entitled to refuse work reasonably assigned to them.
Have a look at our Q&A on when it’s best to hire a permanent employee here, for more. You can also find our template employment contract here.
You can also hire part-time employees if your business has varying demands. Remember, you must not treat part-time staff any differently from their full-time equivalents, whether they are employees or agency staff. This includes equivalent pay: they must be paid the same, pro-rata, as an equivalent full-time employee. See our Q&A here for more.
Freelancers and consultants
If you are looking for greater flexibility and need less control over your staff, consider hiring a freelancer. Freelancers are self-employed professionals who typically offer specialist services, such as design, writing, or IT consultancy. They may be most helpful ifyou don’t need to control how, when, or where the work is done and want predictable costs.
Remember, you must still:
i. agree clear contract terms;
ii. ensure health and safety while they are on your premises; and
iii. allow them to work for other clients unless there’s a conflict.
In addition, be aware of legal risks if you control the work of a freelancer too greatly or integrate them closely to existing employees. Treating them like employees may allow them to claim employee status (and all its protections and benefits) later on.
You can read more about freelancers in our Q&A here, and find our customisable template consultancy agreement here.
Zero hours and casual staff
Another option for flexible staffing is hiring casual or zero-hours workers. These types of staff have no minimum guaranteed hours although they also do not have to accept work when you offer it. While this means you have greater freedom in assigning work, you still have certain minimum obligations toward them, namely providing a written statement of their basic terms of employment, including:
i. name, title of job, brief description and date of engagement;
ii. ordinary pay, sick pay and holiday pay entitlement;
iii. any probationary or notice periods for termination; and
iv. details of your grievance procedures and how to access them.
You must also not discriminate between casual workers and other workers, or between different groups of casual workers. For more details on what you must include in your contracts, see our Q&A on contracts for casual workers here.
Agency staff
If you have an urgent need for staff, hiring agency staff may be the fastest solution when you need to cover work immediately or for a very short duration. Agency workers are employed by the agency but you still have certain duties toward them. This option is best for emergency or last-minute staffing needs but can be more expensive due to agency fees, and you may have limited control over who is assigned to your business.
Remember that agency staff:
i. are entitled to basic rights including holiday and sick pay. Typically this is the agency’s responsibility but you must be sure to check your contract with them;
ii. must be told about any suitable vacancies in your business and be given a safe working environment;
iii. must not be discriminated against; and
iv. are entitled to the same basic pay and working conditions as your permanent staff once they have been with you for 12 weeks.
For more information, see our Q&A here.
Final considerations
Hiring the right type of staff helps you meet business demands while staying compliant with your duties as an employer. What is best for you will depend on your business needs and plans. Have a look at our Q&A on different types of staff and on staff contracts to find a detailed explanation of different employment options, as well as our helpful template documents.
The content in this article is up to date at the date of publishing. The information provided is intended only for information purposes, and is not for the purpose of providing legal advice. Sparqa Legal’s Terms of Use apply.
Rahul joined Sparqa in 2025 from the Commercial Court, where he served as a Judicial Assistant. He has active interests in commercial, corporate and employment developments which he pursues alongside teaching undergraduate law.