Casual or Not? Why Getting Employment Classification Right Matters

18 August 2025

We are increasingly hearing from clubs encountering issues because an employee they thought was casual is, in fact, a permanent part-time employee due to the nature and regularity of their work.

This misclassification isn't just a technicality, it can expose clubs to serious financial and legal risk. A recent case before the Employment Relations Authority made this clear: even when an agreement is labelled casual, what matters is how the employment relationship actually works in practice.

A Common Mistake

It's a widespread assumption that if you call someone a casual employee and they sign a contract to that effect, that's the end of the matter. But that's not how New Zealand employment law works.

Under the law, the true nature of the relationship is determined by:

• the pattern of work,
• the expectations of availability,
• and how the role is managed day-to-day.

If a worker regularly works the same days or shifts, year-round or seasonally, with an expectation they’ll keep showing up unless they take leave, then it’s likely they’re a permanent part-time employee, regardless of what the paperwork says.

A casual employee has no guaranteed hours of work, no regular pattern of work, and no ongoing expectation of employment. They don’t have to accept work if offered it, and the employer has no obligation to offer work. A new offer of employment is extended to the employee each time they accept an offer of work.

What's the Difference?

This part is super important to be aware of.

A part-time worker is someone with all of the rights and responsibilities of a permanent employee. If they moved from part time to full time, the only thing that would change is the amount of hours you pay them for. They are also entitled to four weeks of annual leave.

Casual workers on the other hand are “on call” for when you need them, but have no obligation to accept the work you offer. A casual worker can also work for fixed hours for a short-term contract, but the contract must be for less than one year to fit the “casual” criteria.

Why it Matters

If you get it wrong, the consequences can include:

• Back payment of leave entitlements, particularly annual holidays and public holiday pay.
• Personal grievances, including claims for unjustified disadvantage or dismissal.
• Financial penalties and compliance action under the Holidays Act and Employment Relations Act.

In one recent case, a cleaner was found to be a permanent part-time employee despite being labelled “casual” in her agreement. Her regular hours, length of service, and employer expectations were enough to override the “casual” label, resulting in compensation and back pay orders.

How to Avoid the Trap

Ask yourself the following:

1. Do they have a regular pattern of work?
If someone is working consistent hours or days over a long period, this points to part-time.

2. Do you expect them to turn up unless told otherwise?
If they can’t say no to shifts without consequences, they’re probably not casual.

3. Do you require advance notice for time off?
If yes, that indicates obligation and likely a part-time arrangement.

4. Are you paying holiday pay “as you go”?
That’s only lawful for true casuals, and only if clearly stated in the agreement and payslips.

What Clubs Should Do Now

• Review your current casual arrangements. Look at what’s actually happening in practice, not just what’s on paper.
• Update employment agreements. If someone has evolved into a permanent part-time employee, their agreement should reflect this.
• Keep good records. Rosters, timesheets, and communications can help show whether a role is truly casual or not.
• Seek advice early. Seek support and ask questions before it becomes a problem.

If your club is unsure, we strongly recommend a review of any long-standing casual arrangements to ensure they comply with the law.

More information on types of employment relationships can be found on the employment website https://www.employment.govt.nz/starting-employment/types-of-worker