Making Sense of Employment Categories

Full Time & Part Time – Permanent 

Full-time & Part-Time employees are classified as permanent staff whose employment has no fixed end date—they continue until either they or their employer decide to terminate it.

Typically, “full-time” involves working 30 hours or more per week and part-time less than, although there’s no statutory minimum. These employees are entitled to entitlements like annual leave, sick leave, parental leave, and public holidays at the standard rates under the Holidays Act 2003 and related legislation.

Fixed Term

Fixed-term employees are hired for a specific period or until a particular event occurs (e.g., project completion). They may be full-time or part-time. Unlike contractors, fixed-term employees have the same rights and responsibilities as permanent staff during their employment. If the term is less than 12 months, they may receive their 8% holiday pay with each pay cycle instead of accruing annual leave.

Casual employees have no guaranteed hours or regular work pattern. Employers are not obligated to offer ongoing work, and employees may choose whether to accept it. Casual staff must be paid at least the minimum wage for hours worked and must have a written employment agreement outlining the casual nature of the role and shift-cancellation terms.

Casual employees receive their 8% holiday pay on top of their regular pay instead of accruing annual leave. Sick leave may be granted if specific criteria are met. Employment can usually end with minimal notice, subject to the terms in their agreement.

The best way to do this is finish the employee in your payroll software and set them up again, as the system can get confused when suddenly changing from paying out annual leave to accumulating it. You’ll need a new employment agreement for your employee as well, as a new agreement starts with them on the day they change over.