This seems to be an ongoing source of confusion for many employers, so here’s a very top-line recap:
1. Casual = intermittent, ‘as & when required’, no routine or regularity, no expectation for employer to offer hours, and no expectation for employee to accept hours
2. Fixed Term = defined period, with clear start & end date, and legitimate / genuine reason for being for a finite period. Could be fulltime, could be parttime.
3. Permanent = ongoing, indefinite. Could be fulltime, could be parttime
With the changes to the 90 day trial period coming into effect on 6th May, conversations have resurfaced about the effectiveness of using probationary periods as an alternative.
Certainly, there is merit in using them but it should be done with caution.
The intent of a probationary period is to assess an employee’s skill set for a particular position – this means that (unlike the 90 day trial period), it can be used for an ex-employee coming back into the organisation or for a current employee moving into a new role.
However, there are some things to keep in mind regarding a probationary period:
Recent cases brought to light by the Employment Relations Authority (ERA) have again demonstrated the importance of having your staff on the right type of individual employment agreements (IEA), and the costly consequence of an incorrect classification.
There are three primary classifications for employees; Permanent, Fixed Term and Casual, and there are variances in some of the clauses within the applicable employment agreement.