Full-time jobs aren’t for everybody, and neither is casual labor. Which begs the question, what is the difference between casual work v full time work? Which one pays better and which type of work offers you the most flexibility? Understanding the differences will help you to make the best choice for your needs and desires. With that in mind, let’s dive in to see how they differ, and more importantly, which is the best fit for you!
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Casual Work v Full Time
The below table highlights the key differences between casual work v full time.
| Casual Work | Full-time Work | |
| Number of hours | Usually lower. Worker can accept as many hours as they desire | More than 30 hours a week |
| Working hours flexibility | More flexible, can be compressed in busy periods | Usually fixed hours and set times/days |
| Pay levels | Variable and usually higher hourly pay rates than full-time work | Normal pay rate, typically lower hourly rate than casual work |
| Holiday entitlements | None | Full holiday entitlements |
| Job benefits | Little to no benefits | Entitled to full benefits |
| Job security | Low, can be terminated quickly without paid notice | Higher, termination requires paid notice period |
The above table demonstrates just how different both types of work are. But that only scratches the surface. Below, I share with you the must-know factors to consider before you choose your destiny! The last thing you want is to be out of pocket or out of work due to a poor decision!
In the US, the IRS classifies an employee as full-time if they work at least 30 hours a week or 130 hours per month”. Source
Casual Work v Full Time
Number of hours
Casual employees, such as those who work on zero hour contracts, tend to have no fixed hours and fewer working days than staff in full-time work. The work could be spread out over a set number of days, weeks or months or could be compressed into a short period.
The fact casual laborers can choose if they want to work tends to grant them greater freedom than someone with set full-time hours.
With a permanent job, you are contractually bound to complete a set number of hours each week.
There is more structure too as the employee knows exactly what the minimum number of hours are required to work.
Full-time workers are generally bound by certain hours that they are required to work.
This is usually above 30 hours a week for a full-time worker. The hours that the worker is required to complete also usually have a set structure, e.g., 8am – 12pm, 5 days a week.
But if you’re a full-time worker on a compressed work week or a 4 day work week, you might be working even less!
Plus, if staff work on longer shift patterns during busy periods, they may have fewer commutes to work and more days off as a result
Related: Casual Work v Part Time – 6 Remarkable Differences!
Working hours flexibility
More flexibility tends to exist in casual employment, especially since that worker has the choice to accept or decline the work offered to them. Hours do tend to be irregular but they can be regular too.
If they choose to accept the work, it may be based on certain hours for covering a busy period, season work or putting in the hours to meet project deadlines.
Full-time work is usually fixed hours with set days, start and finish times.
For instance, a company might establish core working hours where staff must be present.
If you work for a company with a flexible working policy, such as the 4-day work week, flexi-time or compressed hours, there will be more freedom to choose the hours you work.
This is one of the biggest perks of an annualized hours contract!
Pay levels
Hourly pay levels are generally higher in casual labor than in a full-time job. Casual workers tend to receive a casual loading in lieu of leave which can equate to higher pay than a full-time worker.
This casual loading is to compensate for the lack of job security, holidays and benefits which casual laborers miss out on.
In 2022, Zip Recruiter stated that the average pay per hour is $15 for a casual worker. This drops to an average of $13 for a full-time worker. Annually, this equates to $8,157 extra for a casual worker.
But this could equate to less when the value of holidays and benefits are added up.
There is little assurance of how much you will earn in a year as a casual laborer as hours are not fixed.
Full time employees are given a fixed salary for the year and know how exactly much they are going to be paid.
Pay is only one side of the coin though, the entitlements you could be losing out on with casual employment will be discussed next.
Related: 4 Day Work Week V 5 Day – Full Of Surprising Facts & Results
Holiday entitlements
Casual employment offers no holiday entitlements which means there is less structure to when a worker can take their holidays.
In one instance, they may work a small number of hours in the year and have plenty of time off. They can also choose to reject work and pick their hours to a degree for more freedom.
On the other hand, people in casual employment might have a hectic year and end up having to rejecting work to allow them to take a break.
This then leads to not taking time off. Or else loss of pay as they don’t receive paid holidays.
If you are a long term casual worker who has worked over 12 months, you will be able to request flexible working arrangements and casual benefits.
Full-time workers are granted paid annual leave which is anywhere from 10 – 30 days a year.
If you work on unlimited holidays, you work out even better as you get to pick your own holidays!
With holiday entitlements, staff can plan for paid time off without impacting on their wages. That is, provided they don’t surpass their annual leave and have to take unpaid leave.
Related: How Unlimited Holidays Work – An Insider Guide + FAQs!
Job benefits
Zero-hour contract workers are not entitled to any of the benefits of the company that they work for. This means that they can’t avail of health insurance, pension, car allowances etc.
Employees receive all these perks and can also be entitled to paid sick leave, bereavement leave, maternity or paternity leave too.
Casual workers don’t get paid sick leave or annual leave.
Depending on how robust the benefits package is for a company, a casual worker could lose out thousands each year.
The only saving grace for casual workers would be the casual loading which pays more per hour.
Tip: Check if you will receive a casual loading in lieu of holiday and benefits.
Job security
Casual labor offers very little job security. There is no guarantee of how long your contract will last or how often you will be offered work. Additionally, the contract can be terminated without paid notice.
Lack of job security will not suit individuals who need to secure a mortgage, have recurring bills, loans or have dependents who rely on them being paid.
Job security in full-time roles is much higher than in casual employment. Some people may be on a fixed-term contract while others may have a permanent full-time job.
In either scenario, you have the peace of mind knowing that your job is secure, and work is regular. If work needs to be terminated, you’ll receive a paid notice period.
You might even benefit from a redundancy package.
Having this job security eases stress levels, guarantees an annual salary and makes it much easier to secure a loan and pay bills.
Conclusion
Both casual work and full-time work have stark differences which are likely to be deal breakers when picking a job contract.
Using the above comparison table and tips, you can decide which is the best fit for you!
If you would like to further enhance your knowledge on work setup and organization, I have written some articles that are without a doubt worth a look.
Here are some other useful articles I wrote that you should go check out:
- 4 Day Work Week V 5 Day – Full Of Surprising Facts & Results
- Annualized Hours Explained – Helpful Tips & How It Works!
- How Unlimited Holidays Work – An Insider Guide + FAQs!
- Best 4 Day Work Week Alternatives – 7 Proven Strategies!
- Does 4 Day Work Week Save Companies Money? + Proven Results!
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