Types of employment

We now have many choices in the work we do, due to our changing economy and society. Employers (bosses, businesses or organisations who pay us for our work) can employ us to work in a number of different employment types. This chapter will briefly outline the various types of employment and the advantages and disadvantages of each type.

Types of employment

Full-time permanent work is regular and ongoing work of between 35 to 45 hours (full-time employees are paid a weekly wage and yearly salary) which includes non-wage entitlements and benefits like paid holiday leave, sick leave and long-service leave. Over the past decade, there has been a significant decline in full-time work in Australia from 89% to approximately two-thirds of the workforce.

Part-time permanent work is regular and ongoing, involves fewer hours than full-time work and usually set days or set hours. Non-wage benefits and entitlements (sick leave, annual leave and holiday pay) are received by part-time employees on a pro-rata (proportional) basis. Sick leave is based on the hours worked over two weeks and annual leave on hours worked over four weeks. Awards and agreements (legal documents specifying minimum pay and conditions) may specify the hours of part-time work. Many people enjoy the flexibility of part-time work, especially if they have other jobs or responsibilities (like parenting or study). There has been an increase in job sharing, which is when two people agree to divide a full-time job into two part-time jobs.

Casual work is ongoing and involves irregular hours and hourly pay. Casual workers often work on an 'as needs' basis, meaning you work when you are required; if you don't work you don't get paid. There are no non-wage entitlements in casual work (no holiday pay, sick leave and annual leave), as those entitlements are factored into 20 per cent of the higher hourly rate that casuals receive. Casuals usually receive hourly rates of pay based on a minimum 15% loading of normal or applicable hourly rates of pay. This is to compensate casuals for the unpredictability of their work and their lack of non-wage entitlements.

Many employees enjoy the flexibility of casual work, perhaps if it allows them to have other casual jobs. Some people find it hard to find work that is not casual, making saving difficult. Casual work can end at any time, so many people regard this type of work as having little job security. Employers must specify at beginning of your employment that you will have casual status. This is so both parties (employers and employees) understand that non-wage entitlements will not be provided.

Self-employed workers are also known as independent contractors or sub-contractors. These people work for themselves, so they control the hours and amount of work they do. Many tradespeople, for example, are self-employed or are sub-contracted by businesses like real estate agents. There are certain taxation benefits for self-employed workers to compensate for the risks of not finding work. Self-employed workers are reliant on the availability of work in their particular field.

Fixed term employment (also known as contract work) is used for single projects or to replace workers on leave. It is common for fixed term employees to not receive entitlements like paid sick leave.

Commission-based employment is pay based on reaching sales targets. A commission is usually a percentage rate of pay per item sold. A 'commission and retainer' employment includes a base pay rate plus commissions, which work like bonuses.

Apprenticeships and traineeships are fixed term employments (usually three to five years) for the purpose of employment training. Apprentices typically learn a trade, such as plumbing, and trainees typically learn non-trades occupations, such as secretarial work. Apprentices and trainees usually perform work duties on-site and learn about the job off-site as well. A specified base rate of pay is given to cover the employment period, which works like a study-based payment.

Probationary employment is a standard requirement for employees commencing full-time or part-time work. It involves an initial period of employment, usually one to six months, where employers assess whether an employee is capable of fulfilling the requirements of a job. If this is the case, employment is usually then confirmed permanent part-time or permanent full-time.

Piece work is employment where a person receives payment for a certain number of items, for example five boxes of fruit for a fruit picker or a measured amount of a commodity, for example one tonne of sand.

Voluntary work is unpaid work. Many charities (non-profit organisations) rely on voluntary workers, because their main purpose is to provide free services to the community, for example Meals on Wheels for the aged population. People work voluntarily for a number of reasons including to use free time productively, to develop skills, to help the community or to contribute to fundraising.

Many large non-government organisations (NGOs) use volunteers for fundraising and to promote global issues such as humanitarian and environmental causes. Voluntary workers generally feel a great sense of purpose in volunteering for a good cause. The situation can arise however, where voluntary workers are exploited and undervalued. Recent research suggests that new voluntary employment conditions need to be developed to stop the exploitation of volunteers.