Main employment types
Each sort of employee varies, so it is vital to think twice about which sort of worker will work best for you.
The five main employment types are:
Permanent or fixed-term employees
Apprentices or trainees – employees
Employment agency staff – also called labor hire
Contractors and sub-contractors – hired staff
Find more advice on identifying the talents and knowledge needed for a replacement role by visiting our page on workforce planning and HR.
The key options listed below will assist you to choose your employment choice.
Hiring people as employees mean them:
receive payment as wages or salary
have their tax taken out by their employer
are based at your business, work on your home, or are mobile
can be full-time, part-time, apprentices, trainees, or casual, and maybe directed when what and the way to try to a task.
Click here for the best labour hire Sydney
A contractor or independent contractor usually:
doesn’t receive wages, but invoices for his or her work
runs their own businesses with an Australian Business Number (ABN)
has its own insurance
does a group task, like designing a computing system – and once the task is completed – the engagement ends
can work for quite one customer
can subcontract their work to others
provides their own equipment, or works from their own base.
Hiring staff through the workplace means that:
the employment agency employs the worker, and you pay the agency for the utilization of the worker for agreed hours or a group period
you can hire people at short notice with specific skills, or for brief or long-term projects
workers are usually short-term – in order that they might not develop a loyalty to your business and take their knowledge with them
the agency pays the worker’s wages and other entitlements
the agency will charge you a commission, agency, or fee – adding extra expense.
Permanent (full-time or part-time) employees
A full-time employee can work a typical day – for instance, Monday to Friday 9 am to five pm.
A part-time employee works regular set hours but a full-time week – for instance, Wednesday to Friday 11 am to 1 pm.
Some awards require an employer to roster a part-time employee for a minimum of three consecutive hours on any shift.
Casual employees are often used for brief irregular periods of labor, but also can add long-term arrangements. Some awards also require casuals to be purchased a minimum of three or four hours of work – counting on the award.
Can be asked to figure at short notice, with no guarantee of normal hours
Are not entitled to annual or personal/carer’s leave
Can be terminated all of sudden – unless they’re covered by an agreement or contract that specifies otherwise
Are good for irregular and short-term work demands
Offer a versatile arrangement for the employer and employee.
Casual employees are paid an additional 20-25 percent – or more counting on the agreement or award – above the bottom rate of pay to compensate them for not receiving the above entitlements.
Find out more about employing casual workers.
Apprentices and trainee employees
Australian Apprenticeships (also referred to as traineeships) are a training contract between an employer and an employee.
The employer provides training and therefore the apprentice learns the occupation or trade. At the top of the training, the apprentice gains a nationally recognized qualification.
Apprentices could also be employed on a full or part-time basis, are often of any age, and should already hold a qualification. Training is often totally on-the-job, or a mixture of on and off-the-job programs.
An apprentice wage varies counting on qualification, sort of training, and industry and is usually entitled to an equivalent superannuation, workers’ compensation, or other requirements as that of an employee.
Businesses that employ apprentices could also be eligible for financial assistance.
Group training organizations employ Australian apprentices and place them with employers while they’re being trained.
Group training may be a great option for businesses that:
Can’t offer an Australian apprentice a permanent position because they’re unable to ensure ongoing work
Might not have the range of labor available to make sure an Australian apprentice gains all the required job skills for that industry
Don’t have the time to undertake all employment and training functions