Employment Types and Hiring Options

There are different ways an organization can recruit staff and it is crucial for you to understand the right wage and benefit entitlements for each employment type. Knowing different hiring options is also important because it allows your business to stay compliant with recent HR regulations regarding employee compensation, leave entitlements, and benefits.

Discussed here are different employment types and hiring options you have:

Table of Contents

Permanent and Part-Time Employees

A permanent employee is one that works on a fixed term and full-time for an average of 38-40 hours a week. They are on the direct payroll of the company and are entitled to a predetermined compensation and other benefits. Permanent employees have an obligation for the work or job role and must serve a notice period before they can end employment with the company. On the other hand, they enjoy numerous perks and benefits and continue to be an employee of the company regardless of the job duty or duration.

A part-time employee typically works fewer than 38-40 hours per work and has regular work hours like permanent employees. They receive the same compensation and benefits as a full-time worker, but on a pro-rata basis depending on the hours of work.

Casual Employees

Casual workers meet the contingency staffing needs of a company and are engaged on an occasional basis depending on the workload. They have no obligations and more flexibility but do not enjoy fixed wages and benefits like a permanent or part-time employee.

Contractual Workers

Contractual workers are hired for a fixed-term, especially to work on a particular task or to meet workforce fluctuations in case of leave or illness. They are paid a flat rate on the basis of the job and not on an hourly or daily basis.