A Causal worker

A Causal worker

A phrase “causal worker” is often used to describe workers who are not part of the permanent workforce, but who supply services on an irregular or flexible basis, often to meet a fluctuating demand for work. A job may be regarded as temporary if it is understood by both employer and employee that the termination of the job is determined by objective conditions such as reaching an employee who has been temporarily replaced. A worker here has limited entitlements to benefit and little or no security of employment. The main attribute is the absence of continuing relationship of any stability with employer. Causal workers differ from other non – permanent worker in that they may often possess fewer rights and less protection. Causal workers must be informed of the conditions applicable to their contracts.

A causal employee

This is where an employee is employed when and if needed, and where there is no particular expectation of continuing employment. In Jinkinson v Oceana Gold[1]  it was stated that casual employment is an employment relationship that only exists during periods of work and the parties have no obligations to each other in between such periods. This also means a person the terms of whose engagement provides for his payment at the end of each day and who is not engaged for a longer period than twenty four hours. A causal employee usually works on an irregular basis and may not be offered work which in turn he or she has the option to refuse. Workplace agreements and awards often contain provision for causal employees.

In 1983 O'Kelly v THF Court of Appeal(unreported)  the importance of the concept of mutuality of obligations was established. Where there is no ongoing obligation for the work provider to continue providing work and where there is no ongoing obligation for the work doer to accept such work there is a lack of mutuality of obligations and this will preclude a contract of employment coming into force. In this case casual wine waiters were held not to be employees despite working in the "employer's" hotel sometimes working 50 hours per week. This case also established that the method of calculating pay is not a crucial element in deciding whether a person is employed or self-employed.

A daily contract worker

This is the one whose wages are payable at the end of the working period. Here wages are calculated at the end of each working day but payable at a later period not exceeding a month. This kind of contract has a presumption of continuity to infinity until otherwise lawfully terminated. To qualify as a causal employee one must not be engaged for a longer period than twenty four (24) hours and the payment must be effected at the end of each day. Thus the element of the mode of payment is necessary in the determination of the status of the employee. Basically a causal employee and a daily contract worker enjoy different rights by virtue of their different legal status. While a causal employee is only entitled to the wage earned on a particular day of his engagement, a daily contract worker is entitled to some more additional rights accruing under the contract. Therefore Even if the employment agreement states that an employee is engaged as a casual worker or causal employee or a daily contract worker basis, the dealings between the parties in relation to work will be taken into account in determining whether they are in fact as such.

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[1] (NZ) Ltd [2009] ERNZ 225