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ARTICLE · 20 JANUARY 2017

Calculating redundancy payments – does prior service as a casual count?

Periods of "regular and systematic" prior employment as a casual are counted when calculating notice and redundancy pay.

AustraliaEmployment and HR

Australian law has for a long time recognised the concept of "casual" employment. It is generally understood that casual employees are engaged on an "as needed" basis. There is no obligation on the employer to offer a casual work and, equally, there is no obligation on the employee to accept work when offered.

Because of the variable nature of their employment, the Fair Work Act 2009 excludes casual employees from the benefit of certain entitlements bestowed on permanent employees under the NES. For example, under the Act, casual employees are not entitled to paid personal/carer's leave, annual leave, notice of termination or redundancy pay.

However, to compensate casual employees for the fact that they do not receive these entitlements casual employees receive a 25% "loading" (or uplift) on the minimum wages set for permanent employees. For award-covered employees the loading is mandated in the applicable modern award, and for award-free employees the entitlement

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