Casual employment - What is it and what are the benefits?

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What is casual employment?

Casual employment in the UK refers to a work arrangement in which an employee is not considered a permanent workforce member but is hired on an as-needed basis to fill specific shifts or roles. Casual employees typically receive different benefits or job security than permanent employees; for example, termination can occur with minimal notice. Zero-hour contracts fall under the bracket of casual employment.

Are casual workers right for my business?

One of the main benefits of casual employment for employers is its flexibility. Because casual employees are not considered permanent workforce members, employers can provide different benefits or job security than permanent employees.

This can be especially beneficial for businesses that experience fluctuations in demand for their products or services, as it allows them to adjust their workforce to meet those work fluctuations without incurring high costs.

Another benefit of casual employment for employers is that it can be a cost-effective way to fill short-term gaps in the workforce. For example, suppose an employer needs to fill a shift on short notice because a permanent employee is absent. In that case, they can often find a casual employee to fill that shift or periods of absence for their staff member.

So, having casual workers is great…

Casual employment also has disadvantages for both employers and employees. For employees, the lack of job security and benefits can make it challenging to plan for the future or access necessary resources such as health insurance or paid time off. An employer is not required to provide shifts, so casual workers could find themselves without work. Check out your employment rights based on your employment status.

Casual employees also often have to work in low-skilled or low-paying jobs, sometimes with reduced notice of when work is required, making it challenging to make a living wage or progress in their careers.

The high turnover rate of casual employees can make maintaining a stable and skilled workforce challenging for employers. In addition, casual employees may not be as dedicated to their work as permanent staff, which can lead to lower productivity and quality of work.

If, as an employer, you have been inconsistent in providing enough shifts, staff may need to seek out additional alternative employment to earn enough. The working relationship can decay, they become less available, and you struggle to obtain the staff to meet your business demands. After all, your casual worker is not obligated to accept your shifts.

Keeping a record of the working relationship and how often work is offered, accepted and declined is beneficial to ensure that the relationship status has not changed to that of an employee; casual workers’ rights after 12 weeks change.

In September 2023, the UK government announced the right for workers after a time, thought to be 26 weeks, to request a more stable work pattern. This should become effective in 2024; we will update as more information is provided.

Casual employment, also known as zero-hour contracts, can be a practical option for employers and employees. Still, it is vital to know the potential drawbacks and ensure the arrangement is fair for all parties involved.