What is a part-time permanent employee?
As the name suggests, a part-time permanent employee works part of each working week. Under Australian workplace law, a part-time position is defined as one in which the weekly hours worked total less than 38 hours, which is classified as full-time work. Typically, part-time work involves anywhere between one hour and 35 hours of work each week. A permanent position, meanwhile, is ongoing and does not have a defined end date, unlike a fixed-term contract. Therefore, a part-time permanent employee is employed in an ongoing role for less than 38 hours a week.
Business leaders determine the number of hours each part-time permanent position will require, as there is no strict rule to follow. However, the hours worked are often consistent each week. For example, an employee might work 9 am to 5 pm on Monday, Tuesday and Wednesday each week.
Depending on a business’s needs and the employment agreement, the hours and days may change from week to week. For instance, an employee might work 9 am to 5 pm on Monday and Tuesday one week and then 9 am to 5 pm on Tuesday and Wednesday the following week. Alternatively, the employee might work 9 am to 2 pm Monday to Friday one week and 2 pm to 7 pm Monday to Friday the next week.
The terms of days and hours worked need to be agreed upon by both the employer and the employee before employment starts, and they need to follow a regular pattern throughout the employment.
The benefits of part-time permanent staff
Part-time permanent employees can bring many benefits to your business.
Increased capacity with minimal cost
Many businesses may have tasks that do not require a full-time work week. For example, a client may request extra services that take only 15 hours a week to complete. If current staff cannot handle this additional work, a part-time employee can be hired for 15 hours a week to meet the increased workload. Hiring a full-time employee for this would mean paying them for 38 hours a week, leading to costs for unproductive time or the need to find other tasks for them to do.
Hiring part-time staff can help businesses grow at a sustainable pace. For example, a hairdressing salon owner may want to expand by hiring another hairdresser, but the owner may be unsure if there is enough demand in their local area for a full-time position. By hiring a part-time hairdresser, the salon can increase its availability to local customers and grow more gradually.
Meet a surge in demand
In some industries, such as retail and hospitality, there typically are specific times of day or days of the week when demand is higher. For example, cafés may find they have more customers in the morning, as people buy coffee on their way to work, while retail shops may see more shoppers on weekends than weekdays. Employing workers for a few hours during these busy periods can ensure customers are served promptly.
Access a certain type of worker
Employers can use part-time permanent positions to benefit from the experience or inexperience of certain workers. For example, many workers transitioning to retirement seek certain roles to ease their way out of the workforce. Employers offering permanent part-time positions can leverage the experience of these workers. Additionally, employers may hire inexperienced staff, such as school or university students who are not available to work full-time, to complete low-skilled tasks or to train over time.
Improve employee engagement
Many employees choose to work part time to accommodate their desired lifestyle, such as pursuing travel or further study. When an employer can offer flexible hours, these employees are often more engaged in their work.
The security of a permanent part-time position, which includes entitlements like sick leave, is highly valued by many employees, who may prefer this arrangement over casual work.
Casual vs part-time staff
Keep in mind the differences between casual employees and part-time permanent workers when you consider expanding your workforce.
Entitlements
Part-time permanent workers are entitled to the same minimum working conditions as full-time permanent workers, including annual leave and sick/carer’s leave. They receive many of these benefits on a pro rata basis. For example, an employee who works three out of five days a week is entitled to 60% of the annual leave days provided to a full-time employee working five days a week. However, part-time employees are entitled to 10 days of family or domestic violence leave, which is not prorated.
Pay rates
Casual employees receive a paid loading to compensate for not having the same annual and sick/carer’s leave entitlements. This means that the weekly pay cost for part-time staff is lower than it is for casual staff, which can help businesses manage cash flow better. When considering hiring part-time permanent staff, this can be an important factor for small business employers to consider.
Continuity
Part-time permanent employees are contracted to work regular, minimum hours each week, whereas casual employees do not have a commitment to ongoing work and may have irregular hours. It is important to take into account notice periods and other termination laws when considering employing permanent part-time staff. There is more flexibility for employers in this area when casual staff are employed.
Who can be employed as a part-time permanent employee?
Any worker can be employed in a permanent part-time position. Traditionally, students and women with children have been employed part-time. However, as business leaders increasingly recognise the benefits of part-time positions, they are employing a diverse range of workers under this arrangement.
While permanent part-time roles are more common in industries like retail, sport and hospitality, they can be beneficial in any industry, including construction, healthcare and finance.
Part-time permanent employees can be a valuable addition to any workforce. They offer a flexible option to meet expanding business needs. Analysing the benefits and differences between casual workers and full-time permanent workers can help ensure you make the right decision for your business needs.
Read more: Contractors, Temporary and Part-Time Casual Workers: What’s the Difference?
