An employee’s pay and conditions, as well as rights and responsibilities, depend on their type of employment. Generally, in the building and construction industry, an employee will be employed as a:
- daily hire employee
- full-time weekly hire employee
- part-time weekly hire employee
- casual employee.
The most common types are full-time daily hire and full-time weekly hire employees. Employees covered by the Building and Construction General On-site Award 2010 or the Plumbing and Fire Sprinklers Award 2010 must be informed in writing by their employer about the type of employment they will be classified as before the employee starts a new job. All conditions relating to an employment type will be covered in their industrial instrument.
Employees covered by the Electrical, Electronic and Communications Contracting Award 2010 are subject to different arrangements related to hire.
Daily hire employment
Daily hire employees work on a day-to-day basis, where the minimum period of notice of termination is one full working day.
This means that an employer may terminate an employee’s employment by giving them either:
- one day’s notice
- one day’s pay in lieu of notice.
An employee may terminate their employment by giving the same notice.
To compensate for the shorter notice period, daily hire employees receive a daily hire loading. This is also known as a ‘follow the job’ loading or ‘lost time’ loading. This means that daily hire employees will receive an additional loading included in their all purpose rate of pay.
It is important to note that daily hire employment is a type of full-time employment, not a type of casual employment. The full terms and conditions of daily hire employment will be covered in an employee’s industrial instrument.
Example: Entitlements for a daily hire labourer
Hussein is a daily hire labourer working for VB Precast Pty Ltd. He is entitled to annual leave and personal leave and receives a follow the job loading in lieu of the standard notice period. As a daily hire employee, he is entitled to receive and provide one days’ notice of termination.
Full-time weekly hire employment
Full-time weekly hire employees are guaranteed their minimum weekly ordinary hours, on a weekly basis. This means that to terminate an employee’s employment an employer needs to give the employee:
- the required amount of notice under the National Employment Standards or under any applicable industrial instrument.
- payment in lieu of notice.
The main difference between daily hire and full-time weekly hire is that weekly hire employees receive longer notice of termination and do not receive a daily hire loading.
Example: Entitlements for a weekly hire employee
Hussein’s supervisor is employed on a weekly hire basis. She has worked for the company for just under three years. The project is ending and she is entitled to two weeks’ notice of termination, or three weeks’ notice if she is over 45 years old and has completed at least two years continuous service on the day that notice is given.
Part-time weekly hire employment
Part-time weekly hire employees receive the same pay and conditions as full-time employees; however, they only receive some entitlements, such as leave, in proportion to the hours they work.
For example, if an employee is working three days in a week instead of five days a week then they are working 60% of the hours of a full-time employee, so they receive 60% of a full-time employee’s entitlements for annual leave and personal/carer’s leave.
Casual employment generally means being employed by the day, with no guarantee of ongoing employment. Casual employees do not receive annual leave or personal/carer’s leave and usually will not be paid for public holidays.
Casual employees receive a casual loading; this loading is an amount added on top of an all-purpose rate of pay or base rate. Casual loading compensates employees for the lack of notice periods and entitlements.