Our casual worker contract is suitable to use where your business’s staffing needs fluctuate and you do not want to commit to providing your worker with a minimum amount of work (such as where you engage a zero hours worker).
This blog sets out examples of circumstances in which you might engage a casual worker, and how to create your own casual worker contract using our template. For more information on the rights and status of casual workers generally, see our Q&A.
When is it appropriate for my business to hire a casual worker?
You should consider hiring a casual worker if:
- You are uncertain how much work you will have for the staff member to do on a regular basis;
- You only want to give them work (and pay them) on an as-required basis;
- You are happy with this staff member being able to agree or refuse to do work for you on a case-by-case or assignment-by-assignment basis;
- You want them to work for you as a part of your workforce, using your equipment;
- You want to have control over how they do their work for you when they are working for you;
- You are happy with the staff member working for other businesses when they are not working for you; and
- You need this staff member to personally do the work which they agree to take on, rather than allowing them to provide a substitute.
How to draft a casual worker contract
A casual worker contract must set out the casual worker’s terms of engagement, eg pay and benefits, hours, disciplinary procedures and confidentiality. This must be provided to the casual worker before their first day of work.
For more in-depth guidance on what terms are usually included in a casual worker contract, see our Q&A.
How to use the casual worker contract template
- Follow this link.
- Click ‘Get started’ and read the background information under ‘What you need to know’.
- Complete the questionnaire with details of your business and the casual worker contract (see below for examples of information you’ll need to consider and provide).
- Download the finished document and read through it carefully to ensure it covers your situation appropriately. If you are unsure what any of the clauses mean, or the other party wishes to negotiate the terms, seek legal advice. You can access a specialist lawyer in a few simple steps using our Ask a Lawyer service.
- Print the contract and arrange for each party to sign it. Keep the originals in a safe place.
Information required to complete the contract template
Our casual worker contract makes clear that there is no obligation on your business to offer any work, nor any obligation on the casual worker to accept any work. It also assumes that they will have ‘worker’, rather than ‘employee’, status.
- Parties to the agreement
You will need the name and address of your business and the casual worker. Make sure you insert the correct party names (eg full registered company name) and addresses, to reflect who is entering into the contract. This avoids any dispute later about who is liable to perform obligations under the contract. In addition, you will need to include who in your business will be responsible for executing certain tasks in relation to the contract.
- Work assignment and tasks
Your contract should include the casual worker’s date of engagement, position and tasks, location, and clauses on rejection of work and termination. This casual worker contract assumes that the worker will not be required to work abroad for a period of time longer than one month. If this is not the case, you are legally required to include additional information, which is set out in the guidance in the template.
- Pay, hours and benefits
You are required to provide your casual worker with details about pensions and pension schemes as well as any further benefits your business offers. However, to avoid any implication that a casual worker is in fact an employee, this casual worker contract assumes that you will not be providing any of these further benefits. If you would like to offer additional benefits you should include these manually once you have completed this questionnaire.
- Holiday and sick leave
This casual worker contract assumes that your casual worker will not have the right to any paid leave besides holiday and sick leave, as these are the only types of leave which are an automatic right. If you want to provide your casual worker with any other paid leave you should amend this contract manually once you have completed the questionnaire.
- Training
You will need to set out details of any training entitlement , including whether the training is mandatory and whether your business will pay for it . You are permitted to provide details about any non-mandatory training in a separate document and that information can be provided within two months of your worker’s start date , rather than immediately .
Important things to note
Bear in mind that providing your casual workers with additional benefits and types of leave to match those of your employees could give rise to an argument that they are in fact employees, and therefore entitled to all the rights and benefits of an employee.
You should read through all of the provisions of the template contract and ensure you understand them. If you are unsure, seek legal advice. You can access a specialist lawyer in a few simple steps using our Ask a Lawyer service.
For guidance on amending a casual worker contract, see our Q&A.
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.
Marion joined Sparqa Legal as a Senior Legal Editor in 2018. She previously worked as a corporate/commercial lawyer for five years at one of New Zealand’s leading law firms, Kensington Swan (now Dentons Kensington Swan), and as an in-house legal consultant for a UK tech company. Marion regularly writes for Sparqa’s blog, contributing across its commercial, IP and health and safety law content.