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When Should a Casual Contract Be Made Permanent?

Writer: MW AdministrationMW Administration

Casual employment can be a great option for flexibility, but what happens when “casual” starts feeling more like a permanent job? Many employees in New Zealand start on casual contracts, only to find themselves working regular shifts for months—or even years—without being offered a permanent role. If that sounds familiar, you may already be entitled to permanent employment.


Hands holding a pen and filling out a weekly timesheet.


What Is a Casual Contract?

A casual employee is someone who works on an as-needed basis, with no guaranteed hours. Key features of a casual contract include:

  • No obligation for the employer to offer work

  • No obligation for the employee to accept work

  • Irregular or unpredictable work patterns

  • Paid 8% holiday pay instead of accruing annual leave

This type of contract works well for short-term or on-call roles, but it’s not designed for regular, ongoing work. If you’ve been working consistent shifts for a while, your job might not be casual at all.


When Should a Casual Role Become Permanent?

If your casual job starts looking more like permanent employment, you may be entitled to have your contract changed. The key factors to consider are:


Regular and Predictable Hours – If you’re working the same shifts each week, that’s a sign your role is no longer casual.

Expectation of Ongoing Work – If your employer relies on you to turn up to work on set days, rather than calling you in as needed, this suggests a permanent relationship.

Long-Term Employment – Casual work is usually short-term or seasonal. If you’ve been working regularly for months or years, your job may have become permanent.

Workplace Policies – Some businesses automatically convert casual employees to permanent staff after a set period (e.g., six months). Check if this applies to you.


If these factors apply to your situation, you may already be legally entitled to be treated as a permanent employee.


Why Does It Matter?

Casual employees miss out on key entitlements that permanent employees receive, including:

Job Security – A permanent role means your employer can’t just stop offering you work without a fair process.

Sick Leave & Annual Leave – Casual employees receive an 8% holiday pay loading, but they don’t accrue paid time off. Permanent employees do.

Protection from Unfair Dismissal – Permanent employees have stronger legal protections if an employer tries to terminate their role unfairly.


If you’re essentially working as a permanent employee, you should be receiving these benefits.


If your employer is keeping you on a casual contract to avoid giving you job security, sick leave, and other benefits, you have the right to challenge this. Start by having a conversation with your employer, and if that doesn’t work, seek advice from an expert. mathewswalker.co.nz | 0800 612 355


 

Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional. 


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