Casual Employment Agreement (Australia)
Fair Work Act 2009 (Cth) — Casual Engagement with 25% Loading
This Casual Employment Agreement (the “Agreement”) is made and entered into between:
[Employer Name] (ABN/ACN: [Employer ABN]), of [Employer Address], [Employer City] [Employer State] [Employer Postcode] (the “Employer”); and
[Employee Name], of [Employee Address], [Employee City] [Employee State] [Employee Postcode] (the “Employee”).
Together referred to as the “Parties”.
1. NATURE OF CASUAL EMPLOYMENT
1.1 The Employee is engaged as a casual employee of the Employer commencing on [Engagement Date].
1.2 The employment relationship is characterised by an absence of a firm advance commitment to continuing and indefinite work on the part of the Employer. The Employer makes no guarantee of ongoing work, minimum hours, or a regular pattern of work. The Employee will be engaged only when work is available and when the Employer chooses to offer, and the Employee chooses to accept, a shift or engagement.
1.3 The definition of ‘casual employee’ for the purposes of this Agreement and the Fair Work Act 2009 (Cth) is an employee engaged in an employment relationship where there is an absence of a firm advance commitment to continuing and indefinite work, and the employee is entitled to receive a casual loading or a specific rate of pay for casual employees under the applicable Modern Award, enterprise agreement, or the National Minimum Wage Order (s15A Fair Work Act 2009 (Cth), as amended by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023).
1.4 This Agreement is subject to the Fair Work Act 2009 (Cth), the National Employment Standards (NES), and the applicable Modern Award: [Modern Award]. To the extent of any inconsistency, the NES and applicable Modern Award prevail.
1.5 The Employer will provide the Employee with a copy of the Fair Work Information Statement (FWIS) and the Casual Employment Information Statement (CEIS) in accordance with sections 125 and 125AA of the Fair Work Act 2009 (Cth) before or as soon as practicable after commencement.
2. POSITION AND DUTIES
2.1 The Employee is engaged in the role of [Job Title].
2.2 The Employee’s primary place of work is [Place Of Work]. The Employer may direct the Employee to perform work at different locations on different engagements.
2.3 The Employee’s duties include:
[Duties Summary]
2.4 The Employer may vary the Employee’s duties from engagement to engagement as required by the business.
3. HOURS OF WORK AND ROSTERING
3.1 The Employee has no guaranteed hours of work. Work is offered on an engagement-by-engagement basis, and the Employee is under no obligation to accept any particular shift or engagement.
3.2 When a shift is offered and accepted, the minimum period of engagement per shift is [Minimum Engagement Per Shift], in accordance with the applicable Modern Award or, if the Employee is award-free, the Fair Work Regulations 2009.
3.3 Shifts will be communicated to the Employee as follows: [Shift Offer Process].
3.4 The Employee must promptly advise the Employer if they are unable to attend a scheduled shift. The Employer reserves the right not to offer future engagements to an Employee who repeatedly fails to attend or cancels shifts at short notice without reasonable cause.
3.5 Each acceptance of a shift by the Employee constitutes a separate and distinct contract of employment for that engagement only. No continuing employment relationship is created by the mere acceptance of individual shifts, except as otherwise required by the Fair Work Act 2009 (Cth).
4. REMUNERATION AND CASUAL LOADING
4.1 The Employee will be paid at the casual hourly rate of [Total Casual Hourly Rate] per hour for all ordinary hours worked.
4.2 This total casual rate is calculated as a base rate of [Base Hourly Rate] per hour plus a casual loading of [Casual Loading Rate] of the base rate. The casual loading is paid in lieu of the following NES entitlements to which the Employee, as a casual employee, is not entitled: paid annual leave; paid personal/carer’s leave; paid compassionate leave (except as an entitlement to 2 days’ unpaid leave per occasion, which applies to casual employees); and any notice of termination entitlements that do not apply to casual employees.
4.3 The total casual rate meets or exceeds the minimum casual rate prescribed by the applicable Modern Award: [Modern Award], including any penalty rates applicable to the ordinary hours worked (e.g. evening, weekend, or public holiday penalty rates where applicable under the Award).
4.4 Payment is made [Pay Frequency] in arrears by direct bank transfer. The Employer will provide the Employee with a payslip in accordance with the requirements of section 536 of the Fair Work Act 2009 (Cth).
5. SUPERANNUATION
5.1 The Employer will make superannuation contributions on behalf of the Employee in accordance with the Superannuation Guarantee (Administration) Act 1992 (Cth) and the NES right to superannuation (effective 1 January 2024). There is no minimum earnings threshold for superannuation entitlement.
5.2 The current Superannuation Guarantee rate is 11.5% of the Employee’s ordinary time earnings (from 1 July 2024), increasing to 12% from 1 July 2025. Contributions are made quarterly.
5.3 Contributions will be made to: [Super Fund], or the Employee’s nominated complying superannuation fund or stapled fund.
6. LEAVE ENTITLEMENTS
6.1 As a casual employee, the Employee is not entitled to the following NES paid leave entitlements: paid annual leave (s87 Fair Work Act 2009 (Cth)); paid personal/carer’s leave (s96 Fair Work Act 2009 (Cth)). The casual loading paid under clause 4 is provided in lieu of these entitlements.
6.2 The Employee is entitled to 2 days of unpaid carer’s leave on each occasion an immediate family or household member requires care due to an unexpected emergency or illness, and 2 days of unpaid compassionate leave on each occasion an immediate family member is seriously ill, injured, or dies (ss102, 104 Fair Work Act 2009 (Cth)).
6.3 The Employee is entitled to unpaid parental leave of up to 12 months (with the right to request a further 12 months), subject to meeting the 12-month qualifying period of regular and systematic employment (s67 Fair Work Act 2009 (Cth)). A casual employee qualifies for parental leave only if employed on a regular and systematic basis for at least 12 months with a reasonable expectation of continuing employment.
6.4 The Employee is entitled to unpaid community service leave for jury duty and emergency management activities (Part 2-2 Division 8 Fair Work Act 2009 (Cth)).
6.5 Long Service Leave: The Employee may become entitled to long service leave under the applicable long service leave legislation of [Governing State] if employed on a regular and systematic basis for a qualifying period (which varies by state).
6.6 Public Holidays: If the Employee works on a public holiday, the Employee is entitled to the applicable public holiday rate under the relevant Modern Award or the National Employment Standards.
7. CASUAL CONVERSION (EMPLOYEE CHOICE PATHWAY)
7.1 Under sections 66A to 66M of the Fair Work Act 2009 (Cth), as amended by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, the Employee may, after completing the applicable minimum period of employment, give the Employer a written notification of a change to permanent (full-time or part-time) employment if the Employee believes they no longer meet the definition of a casual employee.
7.2 The applicable minimum period is 6 months from the commencement date for non-small business employers (employers with 15 or more employees), and 12 months for small business employers (fewer than 15 employees) from 26 August 2025.
7.3 Within 21 days of receiving the Employee’s notification, the Employer must respond in writing, and must consult with the Employee prior to providing that response. The Employer may only decline the notification if the Employee still meets the definition of a casual employee (s15A Fair Work Act 2009 (Cth)), or on fair and reasonable operational grounds.
7.4 The Employee’s rights under this clause cannot be excluded, restricted, or modified by agreement. The casual conversion provisions apply regardless of the terms of this Agreement.
8. TERMINATION OF ENGAGEMENT
8.1 Either party may end an individual casual engagement at the end of each shift without notice or payment in lieu of notice.
8.2 As a casual employee, the Employee is not entitled to the minimum notice of termination prescribed by section 117 of the Fair Work Act 2009 (Cth) (which applies only to employees other than casual employees) or to redundancy pay under section 119 (which does not apply to casual employees).
8.3 The Employer may end the overall casual employment arrangement by giving reasonable notice to the Employee that no further shifts will be offered.
8.4 Nothing in this clause affects the Employee’s access to general protections under Part 3-1 of the Fair Work Act 2009 (Cth), which apply to all national system employees including casual employees.
9. OBLIGATIONS AND GENERAL PROVISIONS
9.1 Workplace Policies: When engaged, the Employee must comply with all reasonable workplace policies, procedures, and codes of conduct of the Employer in force from time to time.
9.2 Work Health and Safety: The Employee must comply with all applicable work health and safety obligations when performing work at the Employer’s direction.
9.3 Confidentiality: The Employee must not disclose any confidential information belonging to the Employer to any third party without the Employer’s consent, during or after any period of engagement.
9.4 NES Compliance: This Agreement is subject to and does not exclude, restrict, or modify any entitlement under the NES. Any term purporting to exclude or reduce an NES entitlement is of no effect (s55 Fair Work Act 2009 (Cth)).
9.5 Governing Law: This Agreement is governed by the laws of [Governing State] and the Commonwealth of Australia.
9.6 Variation: Any variation to the terms of this Agreement must be agreed in writing by both Parties.
IN WITNESS WHEREOF, the Parties have executed this Casual Employment Agreement on the date last signed below.
SIGNED for and on behalf of the EMPLOYER:
Employer: [Employer Name]
ABN/ACN: [Employer ABN]
Address: [Employer Address], [Employer City] [Employer State] [Employer Postcode]
SIGNED by the EMPLOYEE:
Employee: [Employee Name]
Address: [Employee Address], [Employee City] [Employee State] [Employee Postcode]
Employer / Authorised Signatory
________________
Signature
Date: ________________
Employee
________________
Signature
Date: ________________
What Is a Casual Employment Agreement (Australia)?
A Casual Employment Agreement in Australia sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Fair Work Act 2009 (Cth). It defines duties, remuneration, working hours, leave, and termination procedures binding employer and employee.
The legal framework for casual employment has been significantly reformed in recent years. The definition of 'casual employee' for the purposes of the Fair Work Act 2009 (Cth) was amended by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, effective 26 August 2024. Under the new section 15A, a casual employee is defined by reference to the practical reality of the employment relationship — specifically, whether there is an absence of a firm advance commitment to continuing and indefinite work — rather than by what the contract says. This means an employee who is labelled 'casual' in their contract but who works fixed, regular hours may actually be a permanent employee under the Act.
The key financial characteristic of casual employment in Australia is the casual loading — typically 25% of the base hourly rate — which is paid in lieu of the paid leave entitlements (annual leave and personal/carer's leave) that permanent employees receive under the National Employment Standards. Employers must also make superannuation contributions for casual employees under the Superannuation Guarantee (Administration) Act 1992 (Cth), with no minimum earnings threshold following the abolition of the $450 per month threshold from 1 July 2022.
From 26 February 2025, casual employees gained new conversion rights under the 'employee choice pathway' (sections 66A to 66M of the Fair Work Act 2009 (Cth)), allowing them to notify their employer of a change to permanent employment after meeting the eligibility requirements.
The legal framework governing the Casual Employment Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. Parties executing a Casual Employment Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Fair Work Act 2009 (Cth) sets the foundational requirements.
When Do You Need a Casual Employment Agreement (Australia)?
A written Casual Employment Agreement is needed whenever an employer engages a worker on a casual basis in Australia — that is, where the employer is not making a firm advance commitment to ongoing, indefinite work and is instead engaging the worker on an as-needed basis. It is particularly important to have a written agreement in place for several reasons.
First, a written agreement that clearly identifies the engagement as casual and explains the casual loading and its purpose is important evidence if the employer is later required to demonstrate that the employment relationship was genuinely casual. Without a written agreement, there is a risk that an employee could argue they were a permanent employee who was denied paid leave entitlements.
Second, employers are now required to provide casual employees with both the Fair Work Information Statement (FWIS) and the Casual Employment Information Statement (CEIS) before or as soon as practicable after the employee commences work (ss125 and 125AA Fair Work Act 2009 (Cth)). A written agreement provides the natural context for documenting that these statements were provided.
Third, the reformed casual conversion rights (effective 26 February 2025) create new obligations for employers. If an eligible casual employee gives a notification of a change to permanent employment, the employer must respond within 21 days after consulting with the employee. A written agreement that clearly documents the basis of the casual engagement and the date of commencement will be essential in assessing whether conversion rights have been triggered.
Casual Employment Agreements are most commonly used in hospitality, retail, healthcare and aged care, childcare, events, agriculture, construction, and other industries with variable, seasonal, or event-driven staffing needs.
Parties in Australia should prepare a Casual Employment Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Casual Employment Agreement (Australia)
A legally compliant Casual Employment Agreement for Australia must address several provisions that are unique to the casual employment context.
The nature of the engagement clause is the foundational provision. It must clearly state that the employment is casual — characterised by an absence of a firm advance commitment to continuing and indefinite work — and that no guarantee of ongoing employment, minimum hours, or a regular pattern of work is provided. This clause should reference the definition in section 15A of the Fair Work Act 2009 (Cth) to confirm the agreement reflects the amended statutory definition.
The casual loading and remuneration clause must state the total casual hourly rate (base rate plus the casual loading, typically 25%), identify the applicable Modern Award, and clearly state that the loading is paid in lieu of paid annual leave and personal/carer's leave entitlements. The clause should also address penalty rates applicable to particular hours worked (evenings, weekends, public holidays) under the relevant Modern Award.
The minimum engagement per shift provision is required by most Modern Awards — typically 2 to 3 hours per shift — and by the Fair Work Regulations 2009 for award-free employees (minimum 2 hours). This prevents 'split shift' arrangements that defeat the purpose of the loading.
The Casual Employment Information Statement (CEIS) provision must confirm the employer's obligation to provide the CEIS at commencement and at regular intervals (6 months and annually thereafter) under section 125AA of the Fair Work Act 2009 (Cth).
The casual conversion clause must accurately describe the employee choice pathway (sections 66A to 66M) that took effect from 26 February 2025, including the 6-month eligibility threshold (12 months for small business), the employer's 21-day response obligation, and the limited grounds for refusal. This clause cannot be excluded or reduced by agreement.
Additional compliance elements for a Casual Employment Agreement (Australia) used in Australia include: Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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year = {2026},
howpublished = {\url{https://forms-legal.com/australia/employment/contracts/casual-employment-agreement-australia}},
note = {Free legal document template. Based on Fair Work Act 2009 (Cth)}
}Also available for these jurisdictions:
Frequently Asked Questions
Under section 15A of the Fair Work Act 2009 (Cth), as amended by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (effective 26 August 2024), an employee is a casual employee if their employment relationship is characterised by an absence of a firm advance commitment to continuing and indefinite work, and the employee is entitled to receive a casual loading or a specific rate of pay for casual employees under an applicable Modern Award, enterprise agreement, or the National Minimum Wage Order. The key concept is 'no firm advance commitment' to ongoing work — a casual employee has no guaranteed regular hours, and the employer has no obligation to offer, nor the employee to accept, any particular shift. The amended definition focuses on the practical reality of the employment relationship, not just what the contract says.
The casual loading is an additional percentage paid on top of the base hourly rate to casual employees as compensation for not receiving certain paid leave entitlements available to permanent employees. The standard casual loading under most Modern Awards and the National Minimum Wage Order is 25% of the base rate. This loading compensates casual employees for the absence of: paid annual leave (4 weeks per year under the NES); paid personal/carer's leave (10 days per year under the NES); paid compassionate leave (casual employees are entitled only to 2 days' unpaid compassionate leave per occasion); and the certainty of ongoing employment. If a casual employee is later found to have been a permanent employee in disguise, they may be entitled to claim unpaid leave entitlements, with the employer potentially entitled to offset the casual loading previously paid (known as a 'set-off') — but this depends on the specific circumstances and the applicable Award.
From 26 February 2025, casual conversion in Australia operates under the 'employee choice pathway' in sections 66A to 66M of the Fair Work Act 2009 (Cth), introduced by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024. Under this new system, an eligible casual employee — one who has been employed for at least 6 months (12 months for small business employees from 26 August 2025) and who believes they no longer meet the definition of a casual employee — may give their employer written notification of a change to permanent employment. The employer must respond in writing within 21 days, and must consult with the employee before responding. The employer can only decline if the employee still meets the casual definition or on fair and reasonable operational grounds. The previous employer-initiated offer model was abolished. The Casual Employment Information Statement (CEIS), which employers must provide to casual employees, explains these rights.
The Casual Employment Information Statement (CEIS) is a document prepared by the Fair Work Ombudsman that explains casual employment — the definition of casual employment, the casual conversion (employee choice pathway) rights, and where to find more information. Under section 125AA of the Fair Work Act 2009 (Cth), inserted by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, employers must give every casual employee a copy of the CEIS: (1) before or as soon as practicable after the casual employee starts employment; (2) after the employee has been employed for 6 months; and (3) once every 12 months after that. The CEIS is separate from the Fair Work Information Statement (FWIS), which must also be provided to all employees at commencement. Under Australia law, Fair Work Act 2009 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
A casual employee can apply for unfair dismissal protection under Part 3-2 of the Fair Work Act 2009 (Cth) only if they are employed on a regular and systematic basis and have a reasonable expectation of continuing employment on that basis — and only after completing the minimum employment period (6 months for non-small business, 12 months for small business employers). The Fair Work Commission has held that a casual employee who works regularly and systematically over a sufficient period — even without guaranteed hours — may meet this threshold. In contrast, a truly irregular casual employee who works without a regular pattern has no unfair dismissal remedy. All casual employees (including irregular casuals) have access to general protections under Part 3-1 of the Fair Work Act 2009 (Cth), which prohibit adverse action against an employee for exercising a workplace right.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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