What is the difference between casual and permanent employee rights in NZ?

In New Zealand, your employment status significantly affects your entitlements. Here is the key difference between casual and permanent (or fixed-term) employees.

Permanent employees have:

• Agreed minimum hours per week
• Guaranteed income security
• Entitlement to 4 weeks annual leave after 12 months
• Entitlement to 10 days sick leave per year (after 6 months)
• Bereavement leave, domestic violence leave, and parental leave
• Protection from unjustified dismissal (ERA 2000)
• 90-day trial period restrictions apply

Casual employees:

• Work is offered and accepted on an ad-hoc basis — no guaranteed hours
• Each engagement may be a separate employment contract
• Still entitled to: 8% holiday pay (paid as they go or accumulated), minimum wage, rest breaks, and freedom from discrimination
• Unjustified dismissal protections still apply if the employment relationship is ongoing (not just a one-off engagement)

Misclassification: If you work regular, predictable hours over an extended period, you may be a permanent employee regardless of what your contract says. The ERA looks at the reality of the working relationship, not just the label.

Key test: If you work a consistent pattern of hours every week, you are likely a permanent employee and entitled to all the related benefits. An employer calling you "casual" to avoid entitlements may be in breach of the Act.

Source: Employment Relations Act 2000, Holidays Act 2003 — View on legislation.govt.nz