Casual employees, also known as temporary employees or independent contractors, often do not receive sick leave, vacation time, health benefits, or access to retirement plans. They may have flexible hours but are not protected in case of illness. Some companies use this status to avoid paying benefits. In Australia, new laws allow casual employees to contest their status, but few do. Independent contractors do not get paid if they are sick or do not complete the job. Some companies offer insurance for employees who do not qualify for benefits, but it may be difficult or expensive to obtain.
Casual employees are also called temporary employees or independent contractors. The term is often used primarily by universities in the United States and is used more commonly in Australia, New Zealand, the United Kingdom and Canada. In Australia, a worker in this category is defined by not receiving holiday or sick leave and generally ineligible for pension schemes.
In the United States, in most cases, casual employees and independent contractors do not receive sick leave or vacation. They also receive no health benefits or access to retirement plans. Some universities have made an effort to convert some of these employees into regular positions, however, if they work a certain number of hours, normally at least 1,000 hours in a calendar year. For example, Princeton University allows casual employees access to their retirement plan if they work the required hours within a year.
Casual employees and independent contractors have some distinct advantages. They often have very flexible hours which allow them to work from home or work only a few hours a week. In some cases, however, large companies may seek to make employees work “casually” to avoid paying benefits or offer paid sick time and vacation.
In Australia, new laws have allowed casual employees to contest their precarious status. However, the government found that only about 2% of these employees actually petitioned to change their status. In many cases, they are considered rewarded by making a higher hourly wage.
Employees in this category often have to experience the double-edged sword of freedom and extra cash versus security. An independent contractor usually simply doesn’t get paid if he’s sick and doesn’t complete the job. These people may still work long hours, but time off often means no pay.
Many permanent and part-time workers are offered both sick time and paid vacation based on hours worked. Casual employees, having no permanent status, remain unprotected in case of illness. Many independent contractors factor in their vacation time by working extra hours before or after absence.
Some companies offer insurance to employees who don’t qualify for company benefits. With a monthly fee, the employee can receive compensation for injuries or illnesses that prevent him from working. For some people, however, it is difficult or too expensive to get insurance unless they own their own business or belong to an employee organization of a specific type.
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