If you employ people who have an intermittent or irregular work pattern for genuine casual work, you may be able to pay out their annual holidays on a ‘pay-as-you-go’ basis. This means you can pay them 8% of their gross earnings as holiday pay on top of their wages.
Generally casual employees are also entitled to annual holiday pay, however their entitlements may be met differently to that of a full time employee. This will depend on the nature of the relationship with the employer. You can find further information on casual employees’ entitlements here.
It’s important not to confuse part-time employees with casual employees. Many employees who are described as ‘casual’ are in fact part-time employees with a clear employment pattern. For example, supermarket or hospitality employees whose work pattern is established on a fortnightly roster. These employees are entitled to four weeks’ annual holidays.
In some cases, however, there isn’t such a clear work pattern. Generally, these are people who you employ for a special job that you can’t always anticipate or whose work pattern is so irregular or intermittent that you can’t provide them with four weeks’ of annual holidays.
When the employment relationship ends, no additional pay is due to the employee for annual holidays because it has been paid out with their normal pay.