What is Fixed Term/Temporary or Casual Employment?

The general definition is that of “employment that is not permanent”.

Under the Collective Employment Agreement, the definitions are

• “Fixed Term or Temporary means a team member who is employed for specific time period
  
• Casual means a team member who is only expected to work from time to time on an as required basis.”
  
• A Fixed term or Temporary team member can either work full time or part time within that fixed term period. Note: a common misunderstanding is that part time team members are not permanent – this is not correct. 
  

A Casual team member may be on the books for a while but is called in on an irregular basis to cover vacancies or sudden work surges. A casual should not be rostered on a regular basis.

If you are not sure, contact the Ask People Support team on 09 215 5057, extension 27577

Why is it important to get Fixed Term/Temporary/Casual Employment right?

By law and in our business, there are processes that need to be followed when employing someone on a fixed term basis - and consequences for the business and the team member for not following those processes. It is also fair to the team members that they have all the information regarding their employment at the start.  

WHAT

DOCUMENTS

1

By law you must have a genuine business reason for employing a team member on a fixed term or temporary basis and this must be stated in writing in their Employment Agreement.

Reasons could be to cover a vacancy due to a parental leave or long term illness, to cover a seasonal increase in business such as Christmas or to work on a specific project or to cover a period if a new store is opening nearby or a competitor closes temporarily

Further information can be found on Knowledge Base.

2

What you need to do when employing a fixed term or temporary team member. 

The team member must be issued a Letter of Employment via DocuSign stating the reason for the fixed term or temporary employment and the dates of the employment

This must be given before the team member starts work. A consequence of not giving this employment agreement could lead to the team member claiming permanent employment and a monetary fine for TWL

Fixed term and casual team members are covered by the Collective Agreement if they join the First Union

There are separate Letters of Appointment for Fixed term re Parental Leave and Christmas Temps

Employment Agreements can be generated on DocuSign

3

What should I write in the Letter of Appointment as to the reason?

You must select one of the available reasons in DocuSign

Employment Agreements can be generated on DocuSign

4

What if I don’t know the exact date the fixed term employment will end? You have to advise the team member of when and how the employment will end and the reasons for the employment ending in that way. If the exact date is not known e.g. because the person is working on a project, you must include in the employment agreement the event or reason that will bring the employment to an end

Further information can be found on Knowledge Base.

5

What do I do if I need to extend the fixed term agreement?

First ask yourself: Does the business reason for the temporary employment still exist? If it does, then you must give the team member another Temporary Employment Agreement to sign BEFORE the old one expires. There must still be a reason for the fixed term employment in every agreement whether an extension or not. If the business reason does not exist, you cannot extend the fixed term employment and it must come to an end. However, if there is a different valid business reason, you can still extend the fixed term employment.  For example, if Christmas comes to an end but you still have the need for some Temps to cover stocktake in January.  

You must give the team member another Fixed Term Employment Agreement to sign BEFORE the old one expires including the new reason for the fixed term employment in the agreement. 

Further information can be found on Knowledge Base.

6

What happens if I don’t put the reason in any extension or new fixed term agreement? 

You have broken the law - Employment Relations Act - and not followed our own TWL employment process A consequence of not putting this could lead to the team member claiming permanent employment and a monetary fine for TWL. 

Further information can be found on Knowledge Base.

7

How often can I roll over a fixed term employment period?

There is no time frame set by law. There must still be an underlying valid business reason for the employment

However, constantly rolling over the employment does raise the risk of a challenge to the validity of the business reason(s) and of the team member being deemed a permanent by law

Further information can be found on Knowledge Base.

8

How will a team member view fixed term or a rollover?

You must be careful not to raise what is called “legitimate expectation” i.e. although the employment is temporary the team member has been told by “someone” or management that there will be a permanent role at the end of it. Even if you use words like “probably” or “might” you can still raise legitimate expectation

Further information can be found on Knowledge Base.

9

What hours can a fixed term or temporary team member work per week or per employment period?

There are no minimum or maximum hours for fixed term or temporary team members. They are employed for whatever weekly hours are agreed for the period of the employment. This could be full time or part time and they can be rostered during that period

Further information can be found on Knowledge Base.

10

What information do I need provide to the team member advising them that their fixed term employment agreement is about to come to an end? 

You need to send the team member a letter reminding them that their fixed term employment agreement is about to end. This letter needs to be sent at least TWO weeks before their employment agreement expires

Employment Agreements can be generated on Docusign 

11

What hours can a casual team member work per week or per employment period?

There are no minimum or maximum hours for casual team members. They are employed on an “as-required” basis and should not be rostered on a regular basis. They may be employed for one day or three weeks or more.  Each period of employment should be separate and there must be contact with the casual team member to ask if she or he is able to work on each occasion. A casual is not obliged to work and may turn down a request to work just as we are not obliged to offer any work

Further information can be found on Knowledge Base.

12

What happens to casuals who we want to work extra hours over Christmas?

If you want a casual to working extra hours on a fixed, rostered basis over Christmas you should, by agreement, change their status to fixed term or temporary for the Christmas period

You will need to complete a Change of Details in MyPay and complete a Fixed Term contract in DocuSign

Change in Details on MyPay

13

How does holiday pay apply for a fixed term, Christmas temp and casual team member? 

Christmas Temps: are paid 8% on an as-you-go basis.  Fixed term agreement: team member holiday pay is paid at the end of the fixed Term agreement.  Casual team member: is paid 8% on an as-you-go basis

Further information can be found on Knowledge Base.

14

Does Casual employment count towards long service with company?

No, it doesn’t. Temporary or Fixed Term does e.g. a Christmas temp who moves straight onto permanent employment

Further information can be found on Knowledge Base.

15

What if I want to keep one of my Christmas temps on the books as a Casual because they are a good worker?

If you have a genuine need for an extra casual then, by agreement, you can move the Temp to Casual. However, you should not do this just to keep them on the books e.g. the team member is moving to another city and there are no vacancies at The Warehouse in their new town. Or the Temp was a university student who has gone back to University and who you hope will come back next year during the holidays. If you do this, they are still accruing service entitlements. Note: any permanent placements must be approved (in advance) by your Regional Manager. 

Further information can be found on Knowledge Base.

16

Why can’t I just keep them on the books?

This creates a false record of our headcount. Also, team members move through the wage scale based on service and this includes Casuals and Temps. You are creating more work by for yourself by keeping people on the books who are not working at all. 

Further information can be found on Knowledge Base.

17

If I have extra hours should I give them to a Casual? 

Where ever practicable any extra hours (either permanent or not) should be offered to permanent team in the first instance. Only call in a casual when you do not have any one permanent who can cover the extra hours required. 

Further information can be found on Knowledge Base.