Engaging part-time employees

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How part-time employment differs from casual and fulltime employment

Part-time employees are required to work less than 38 ordinary hours per week and typically work a predictable or fixed pattern of work. The nature of part-time engagement requires employment on a permanent basis or on a fixed-term contract. In the spectrum of the different methods of engagement, part-time employees sit between casual and full-time employees. Full-time workers work longer hours, requiring an average of 38 ordinary hours per week. In contrast, casual workers have irregular or unpredictable hours without a firm and consistent commitment in advance of ongoing work on an agreed pattern. Part-time employees generally work less hours than full-time employees but have an ongoing commitment from their employer to work certain hours within a week. Part-time employees in the context of the GRIA

Many members will be covered by the General Retail Industry Award (the GRIA), which specifies that part-time employees work less than 38 ordinary hours per week, with reasonably predictable hours. Part-time employees receive minimum entitlements such as sick leave and annual leave, which are accrued on a proportionate basis. To comply with the GRIA when engaging a part-time employee, there must be an agreement recorded in writing between the employer and the employee which specifies the employee’s guaranteed hours of work, start and finish times on each day of work and meal break timing and duration. Such an agreement may take place through an exchange of emails, text messages or other electronic means to confirm the arrangement. A shift minimum of three hours applies to parttime employees covered by the GRIA.

In the context of the TIA

Other members will be covered under the Timber Industry Award (the TIA). Part-time employees in this context are subject to similar provisions to the GRIA. Members are required to roster a part-time employee for a minimum of 3 consecutive hours on any shift. Like the GRIA, an agreement is to be recorded in writing outlining the hours to be worked by the employee, the days which they will be worked and the start and finish times for the work performed. Requirements when engaging a part-time employee under the GRIA and TIA

When engaging part-time employees, the following steps are recommended to ensure that members have complied with the GRIA or the TIA.

Step 1: Agree in Writing

Members must agree in writing with the employee on a regular pattern of work. This may involve contacting the part-time employee, consulting on the proposed regular pattern of work then recording the agreed pattern of work in writing. This can be achieved in a variety of ways, including formal and relatively informal contexts, including through a formal employment contract or exchange of emails, text messages or other electronic means.

Step 2: Number of hours worked on each particular day of the week

The written agreement should specify the number of hours to be worked on each particular day of the week. The following passage is an example of how a member can meet the requirement to confirm the guaranteed hours of work when engaging a part-time employee. E.g. Dear James, Congratulations on your new role with us. We will be engaging you as a part-time employee during your employment. As part of your employment we will require you to work 8

hours on Monday, Tuesday and Friday

respectively and 4 hours on Sunday. Depending on the store’s demand, there may be room for additional hours, but the hours listed will form your guaranteed hours of work. If these conditions are suitable, please confirm with us by replying to this email.

Step 3: The times at which the employee will start and finish work each particular day

The written agreement should also specify each workday’s start and finish times. The below passage is continued from the passage above. E.g. In the course of your employment, you will complete your hours from 10am6pm on Monday, Tuesday and Friday and 10am-2pm on Sunday. These will form your guaranteed hours of work…

Step 4: When meal breaks will be taken and their duration - GRIA

For employees covered by the GRIA, the written agreement should also specify

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the timing and duration of meal breaks. This requirement does not apply to employees covered by the TIA. However, members exercise their discretion in outlining the timing and duration of meal breaks in the written agreement with employees. The below passage is continued from the passage above. E.g. When you are working, you will be entitled to meal breaks each shift. They will be for 30 minutes of your designated shift and can be taken any time between 12 and 2 pm on the day of your assigned shifts. These lunch breaks will be paid for and will provide you with a significant break during your shifts. We look forward to you commencing your time with us next week.

Employment contracts

When engaging part-time employees, it is advisable to formalise the terms that have been agreed upon in a formal employment contract. An employment contract outlines the contractual obligations each party agrees to be bound by and can form an essential safeguard for members when engaging part-time employees. In such a contract, you should outline key terms, such as hours to be worked; days worked, breaks, conditions of employment and any other relevant information.

When is it suitable or not suitable to engage a part-time employee? If not suitable to engage a part-time employee, in what scenarios is it more suitable to engage a full-time or a casual employee?

Members should be aware of conditions that may render engaging a part-time employee more suitable. Factors that may support the engagement of a parttime employee are outlined below: • A requirement for consistent specified hours of work each week • A requirement for a significant amount of hours of work per week that is less than 38 ordinary hours a week • A requirement for a permanent employee that is critical to the business requirements for the predictable or foreseeable future • A requirement for commitment to work given hours of work Conversely, factors that may support the engagement of an employee other than a part-time employee are given below: • No requirement to perform a regular set of hours each week • A requirement for work to be performed on an ‘as needed basis’ • A requirement for more than 38 hours a week • A requirement for only a small amount of hours each week • A requirement for different hours of work each week

Part-time flexibility provisions under the GRIA

Part-time flexibility provisions are found in the GRIA only. If your employee is covered by another award or by an enterprise/collective agreement, the below information on part-time flexibility provisions does not apply. The part-time flexibility provisions apply to the following types of employees: • Employees covered by the GRIA; and • Part-time employees only; and • Includes juniors; and • Includes previous casuals that have converted to part-time.

What is the part-time flexibility provision?

This provision is outlined in clause 10.6 in the GRIA: The employer and the employee may agree to vary the regular pattern of work agreed under clause 10.5 on a temporary or ongoing basis with effect from a future date or time. Any such agreement may be recorded in writing. (a) If the agreement is to vary the employee’s regular pattern of work for a particular rostered shift – before the end of the affected shift; and (b) Otherwise – before the variation takes effect Note 1: An agreement under clause 10.6 could be recorded in writing, including through an exchange of emails, text messages or by other electronic means. Note 2: An agreement under clause 10.6 cannot result in the employee working 38 or more ordinary hours per week (as then they no longer can be classified as a part-time employee)

Why use the part-time flexibility provisions?

The GRIA provides for overtime rates to be paid to part-time employees if they exceed their guaranteed hours of work. Suppose members use the part-time flexibility provisions compliantly. In that case, members can pay an employee ordinary rates of pay instead of overtime rates for what would otherwise be additional hours of work. The part-time flexibility provision provides an incentive for members to comply with casual conversion obligations because members can still retain flexibility after converting a casual employee to part-time status. This is also an incentive for Members to convert casuals to part-time positions even if the casual conversion obligations do not apply.

If members have any questions in relation to engaging part-time employees, please contact our Employment Law Team on 1800 888 479.