Full-Time vs Part-Time vs Casual: Entitlements Compared

Quick Comparison Table

The table below summarises the key differences between the three main employment types under the Fair Work Act 2009 and the National Employment Standards (NES).

Full-Time Employment

Full-time employees work 38 ordinary hours per week (or an average of 38 hours over a roster cycle) and receive the complete suite of National Employment Standards entitlements.

• 4 weeks paid annual leave per year (5 weeks for some shift workers)
• 10 days paid personal/carer's leave per year (accumulates)
• 2 days compassionate leave per occasion
• 12 months unpaid parental leave (plus the right to request an additional 12 months)
• Notice of termination of 1 to 5 weeks depending on length of service (plus 1 extra week if over 45 and employed 2+ years)
• Redundancy pay of 4 to 16 weeks pay depending on years of service
• 12% Super Guarantee on qualifying earnings (ordinary time earnings for most employees)

Best for: Workers seeking maximum job security, full leave entitlements, and predictable income. Ideal for those with fixed financial commitments like a mortgage.

Part-Time Employment

Part-time employees work fewer than 38 hours per week on a regular, guaranteed schedule agreed in writing. They receive the same entitlements as full-time employees, calculated on a pro-rata basis.

• Guaranteed minimum hours agreed in the employment contract
• All NES leave entitlements calculated pro-rata (e.g., a 20-hour/week employee receives 2 weeks equivalent paid annual leave)
• Same notice of termination and redundancy pay rights as full-time
• Overtime rates apply when working beyond agreed hours (not just beyond 38 hours), depending on the applicable award
• 12% Super Guarantee on qualifying earnings (ordinary time earnings for most employees)

Best for: Workers who want stability and leave entitlements but need a schedule that accommodates study, caring responsibilities, or a second job. Parents returning from parental leave often transition to part-time.

Casual Employment

Casual employees have no firm advance commitment to continuing and indefinite work according to an agreed pattern. In return, they receive a 25% casual loading on top of the base hourly rate to compensate for the absence of paid leave and other entitlements.

• 25% loading on the applicable base rate (this compensates for no annual leave, personal leave, notice period, or redundancy pay)
• 2 days unpaid carer's leave per occasion and 2 days unpaid compassionate leave
• No notice period required from either party to end the engagement
• Minimum engagement per shift of 2 to 4 hours depending on the award
• 12% Super Guarantee on qualifying earnings (no minimum earnings threshold since 1 July 2022)
• Casual conversion right: After 6 months of employment (12 months with a small business employer), a casual who believes they no longer fit the casual definition can notify their employer in writing that they want to become full-time or part-time. Since 26 August 2024 employers are no longer required to offer conversion.

Best for: Workers who prioritise flexibility over stability — students, those between jobs, or anyone who wants the freedom to accept or decline shifts without obligation. For what the loading is worth in dollars in the largest casual workforce, see the Retail Award Pay Rates 2026-27.

The Real Cost Comparison

The 25% casual loading sounds generous, but when you factor in the value of lost entitlements, the financial picture is more nuanced. For a worker earning $30/hour base rate working 38 hours per week:

The casual worker earns more gross pay, but the gap narrows significantly once leave usage is factored in. Use the Employment Type Calculator to model the exact comparison for your rate and hours.

Changing Employment Type

Australian law provides several pathways for changing employment type:

Casual to Permanent Conversion

Under the Fair Work Act (as amended by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024), the “employee choice” pathway replaced the old employer-offer system on 26 August 2024. A casual employed for at least 6 months (12 months with a small business employer of fewer than 15 staff) who believes they no longer meet the definition of a casual employee can notify their employer in writing that they want to change to full-time or part-time employment. Employers are no longer required to offer conversion.

The employer must consult the employee and respond in writing within 21 days. It can refuse only if the employee still meets the casual definition, or on fair and reasonable operational grounds such as the change requiring a substantial restructure of the role, and the refusal must give reasons.

Requesting Part-Time After Parental Leave

Under the NES, an employee returning from parental leave can request a change to part-time hours. The employer can only refuse on “reasonable business grounds” and must discuss the request in good faith. This right extends until the child reaches school age (or 18 for a child with a disability).

Full-Time to Part-Time

There is no automatic right to reduce hours, but many Modern Awards and Enterprise Agreements include provisions for flexible working arrangements. Employees with 12 months' service can request flexible arrangements under the NES if they are a parent, carer, over 55, experiencing domestic violence, or have a disability.

Frequently Asked Questions