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
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.
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
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.
