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Thread: Temporary Workers Contract

  1. #1
    Gold Member IMHO's Avatar
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    Temporary Workers Contract

    I see there is no more such thing as a casual worker. That leaves me with a major problem. How do you draw up a contract to cater for the need of the traditional casual?

    I need a worker that I can call when needed by the business. Sometimes twice a week, some weeks not at all and some weeks 4-5 days. This is too unpredictable to forecast.

    The only way I see is to stipulate working hours of 3 days per week. Then, if he work 1 day or 2 days or nothing at all, I will have to pay the 3 days. The next problem is when he work more than the 3 days, then I will have to pay overtime rate for the other days. Obviously that is not going to be cost effective and I can not afford to do that. I also can not employ a different person after every 24 hours that the previous one worked, to stay under the 24 hour p/m limit. I will also have to stipulate a fixed period to the contract, which leaves the question of how many times a contract can be renewed?

    How do you handle public holidays, as I will not have a way to determine whether he would have worked on that specific day or not?

    I employ less than 10 people and operate a small business in the hospitality industry. (Guest house) Are all these rules applicable?
    ~Expenses will eat you alive! - My first Boss~

  2. #2
    Silver Member Greig Whitton's Avatar
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    You can still hire employees on a casual basis, however, non-permanent employment is subject to additional rules introduced by the amended Labour Relations Act. For example, under certain circumstances, a casual employee may be deemed to be permanently employed or entitled to the same benefits as a full time employee.

    Unfortunately (and unsurprisingly), these new rules aren't particularly straightforward. As I posted in a previous thread, the new Labour Relations Act recognises three categories of non-permanent employment: temporary, fixed term, and part time. Each category has its own set of rules and contingencies. So you would need to work out which category your definition of "casual employment" falls into, and then familiarise yourself with the rules and contingencies for that particular category.

    I've got some more information on my blog about how the amended Labour Relations Act will affect the dismissal of non-permanent employees and entitlement to full-time benefits if you are interested.

    Founder of Evergrow - Helping South African business owners grow their business without the growing pains

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