Understanding Your Obligations When Employing Casual Employees

Payroll & Staff

Most farm businesses rely on casual workers — whether it's harvest crews, shearing contractors, or seasonal station hands. But casual employment comes with obligations that many farm employers don't realise apply to them.

Employing casual staff offers the flexibility that farming operations genuinely need — workers when the season demands it, without a long-term commitment either way. But that flexibility doesn't mean fewer obligations. Casual employees have specific legal entitlements under the Fair Work Act, and it's on you as the employer to understand and meet them.

This is an area where farm businesses are increasingly under the spotlight. Getting it right from the start is far easier — and cheaper — than dealing with a Fair Work complaint after the fact.

Casual vs Permanent: What's Actually Different?

It's worth being clear on how casual employment actually differs from permanent employment, because the distinctions have real payroll and compliance implications.

Entitlement	Casual Employee	Permanent Employee
Paid annual leave	Not entitled	Yes — 4 weeks per year
Paid personal / carer's leave	Not entitled (paid)	Yes — 10 days per year
Unpaid carer's & compassionate leave	Yes — after regular & systematic work for 12 months	Yes
Family & domestic violence leave	Yes — 10 days paid, from day one	Yes — 10 days paid, from day one
Unpaid parental leave	Yes — after regular & systematic work for 12 months	Yes — after 12 months
Notice of termination	Not entitled	Yes — based on length of service
Redundancy pay	Not entitled	Yes — based on length of service
Casual loading	Yes — typically 25% in lieu of leave entitlements	Not applicable
Superannuation	Yes — if earnings meet the threshold	Yes

⚠️ Don't assume casual means simple Even short-term casual workers have legal entitlements from day one — including paid family and domestic violence leave. And if a casual worker ends up working regular and systematic hours over time, additional entitlements can kick in. This happens more often than you'd think on farms where the same workers come back season after season.

Key Entitlements Casual Employees Have From Day One

Family & Domestic Violence Leave All employees — including casuals — are entitled to 10 days of paid family and domestic violence leave each year from their very first day of employment. This leave can be used to attend court hearings, arrange safe housing, or deal with other impacts of family and domestic violence. It applies regardless of how many hours a week the employee works.

Employee Choice Pathway — The Right to Request Permanency If a casual employee has been employed for 12 months and has worked on a regular and systematic basis for at least the last 6 months, they now have the right to request to convert to permanent employment. This is known as the employee choice pathway. As an employer, you can only refuse this request on specific, limited grounds — and you need to be able to document your reasons clearly.

Unpaid Carer's, Compassionate & Parental Leave Casual employees who have worked on a regular and systematic basis for at least 12 months become eligible for unpaid carer's leave, unpaid compassionate leave, and unpaid parental leave. For farm operations where the same casual workers return each season, this can become relevant sooner than expected.

What "Regular and Systematic" Actually Means for Farms

One of the most common issues for farm employers is the concept of "regular and systematic" work. A casual employee doesn't need to work the same hours every week to be considered regular and systematic — they just need a pattern of work that is predictable enough to be relied upon.

This matters on farms because returning seasonal workers — the ones who come back for shearing, seeding, or harvest every year — may meet this definition even if they're only employed for part of the year. If they do, additional entitlements apply, and their right to request permanency kicks in after 12 months.

• Keep records of when each casual employee works, including start and finish dates each engagement
• Note which workers return seasonally year after year — these relationships need closer attention
• Be aware of when the 12-month mark approaches for regularly returning workers
• If in doubt about whether a worker qualifies as regular and systematic, seek advice before the issue arises

Payroll Obligations for Casual Farm Workers

Getting the payroll side right for casuals requires attention to a few key areas:

• Casual loading — Casuals are generally paid a loading (typically 25%) in lieu of leave entitlements. Make sure the correct rate is applied under the relevant Award.
• Award compliance — Most farm workers are covered by the Pastoral Award or another applicable modern Award. Confirm which Award applies and what the correct casual rates are.
• Superannuation — Casual employees are entitled to super if their ordinary time earnings meet the threshold. From 1 July 2026, super must also be paid on payday under the new Payday Super rules — this applies to casuals too.
• Single Touch Payroll — All employees, including casuals, must be reported through STP. Make sure new casual starters are set up in your payroll system before their first pay run.
• Tax file number declarations — Casual employees must provide a TFN declaration (or complete online via myGov). Without one, you're required to withhold tax at the highest rate.

The Bottom Line for Farm Employers

Casual employment is a cornerstone of how most farms operate — and it works well when it's managed correctly. The obligations aren't unmanageable, but they do need to be understood and applied consistently.

The biggest risk for farm employers isn't wilful non-compliance — it's not knowing what you didn't know. Fair Work inspectors increasingly visit regional and rural operations, and record-keeping is one of the first things they check.

Clean payroll records, correct Award rates, and an understanding of when casual entitlements kick in are your best protection.

Further Resources

For detailed guidance, the Fair Work Ombudsman has resources specifically designed for employers:

• Your Guide to Casual Employment — Fair Work Ombudsman (PDF)
• Becoming a Permanent Employee — Fair Work Ombudsman
• Pastoral Award pay rates — Fair Work Ombudsman

Need Help Getting Your Casual Payroll Right?

At AgBooks Australia, we help cropping and livestock operations manage payroll compliantly — casual workers, seasonal staff, and everything in between.

Talk to the AgBooks Team

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