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What Is a Casual Employee in New Zealand? (Complete Guide 2025)

Updated November 2025 Resource 5 min read

What Is a Casual Employee in New Zealand? (Complete Guide 2025)
Brett Ransley By Brett Ransley • 21 Nov 2025
Written by the GoCasual team - helping New Zealand businesses simplify payroll and stay compliant.
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Casual employment in New Zealand can be confusing, especially if you’re a small business or sole trader hiring staff around busy periods. This guide explains what a casual employee is, how casual work is different from other types of employment, and what you need to do to stay compliant.

This information is based on guidance from Employment New Zealand  and other official sources, and is written for NZ employers.

What Is a Casual Employee in New Zealand?

Casual employment is not defined in legislation, but Employment New Zealand describes it as a situation where an employee:

  • Works only when it suits both them and the employer
  • Does not have a regular pattern of work
  • Has no expectation of ongoing employment
  • Can accept or decline offers of work

 

Important: Even if an employee is “casual”, they are still an employee. They are entitled to minimum rights such as minimum wage, rest and meal breaks, and a safe workplace.

Key Features of Genuine Casual Employment

In practice, a genuine casual arrangement usually looks like this:

  • Each shift or period of work is a separate engagement
  • There is no ongoing obligation on the employer to offer work
  • The employee is free to say no to work offered
  • Work demand is unpredictable, seasonal, or event-based

Community Law notes that for casual arrangements, there is no guarantee of future work and no requirement for the employee to accept work when offered. See:  Community Law – Casual work arrangements.

Casual vs Permanent vs Fixed-Term Employment

Casual is just one type of employment arrangement recognised in New Zealand. Employment New Zealand outlines the main types on its types of workers page.

Casual vs Permanent (Full-Time or Part-Time)

  • Permanent employees have an ongoing expectation of work and usually have regular hours.
  • Casual employees work irregularly, with no guarantee of hours and no expectation of ongoing work.

Casual vs Fixed-Term

  • Fixed-term employees have a clear start and end date (or a specific project end).
  • Casual employees are engaged “as required”, one shift at a time, with no fixed end date.

 

Tip: Calling someone “casual” in the agreement does not make them casual if they actually work regular, ongoing hours. What happens in practice matters more than the label.

Rights of Casual Employees

Casual employees have nearly all the same minimum rights as any other employee. These minimum rights are explained on the Employment New Zealand – Employee rights and responsibilities
page.

  • At least the current adult minimum wage for every hour worked
  • Rest and meal breaks
  • Safe and healthy work environment
  • Paid public holidays (in some cases)
  • Protection from discrimination, harassment, and unfair treatment

Some entitlements, such as sick leave or bereavement leave, depend on how long and how regularly they have worked. Over time, a regular pattern of work can give them additional rights similar to permanent employees.

When Casual Employment Stops Being Casual

Casual employment is more than just a label. If a casual employee starts working on a regular, predictable basis, they may in reality be a permanent employee, regardless of what the agreement says.

Legal commentary (for example, employment law firms and specialist articles on casual employment ) often highlight that:

  • A regular pattern of hours can suggest permanent employment
  • Ongoing expectation of work is a key indicator of non-casual status
  • If an employee reasonably expects continuing work, they may gain extra entitlements

 

Warning: Treating a worker as “casual” when they are effectively permanent can lead to disputes, backdated holiday pay, and potential penalties.

When to Use Casual Employment

Casual employment is generally suitable when:

  • Work demand is genuinely unpredictable (e.g. events, hospitality, seasonal surges)
  • You need cover for staff absences at short notice
  • You only need someone occasionally or intermittently

If you know you will need someone regularly (for example, every Saturday), a part-time or fixed-term arrangement may be more appropriate.

Staying Compliant as an Employer

To stay on the right side of employment law, make sure you:

  • Provide a written casual employment agreement before work starts
  • Clearly state that work is not guaranteed and is offered as required
  • Explain how holiday pay is handled (often 8% pay-as-you-go)
  • Keep accurate records of hours worked and amounts paid
  • Pay at least the current minimum wage for every hour worked

You can also review general employer obligations on the Inland Revenue “Employers” page and the Employer rights and responsibilities page.

Quick Checklist: Is This a Casual Employee?







If several of these boxes are not ticked, it may be worth reviewing whether the role is truly casual, or whether a different employment type would be more appropriate.

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