Top 3 clauses to include in a temporary or casual employment contract

What is the difference between a temporary employment contract and a casual employment contract?

Temporary employment contracts and casual employment contracts are two ways to engage flexible employees for your business. But what are the differences?

1. Temporary employment contract (also known as a fixed term contract) - this type of contract will be used where employees are being engaged on a temporary basis, e.g. a seasonal or casual employee taken on for up to 6 months during a peak period, a specialist employee for a project or someone covering for maternity leave. The employee will be given a fixed start date and end date for their employment and, unless circumstances change, the employee’s role will end on the defined end date in the contract.

2. Casual employment contract - this type of contract does not generally have a fixed duration and is typically on an as-needed basis. Casual workers have a more flexible work schedule and are often engaged on an “as needed” basis. This is sometimes known as a zero hour contract.

A summary of the key differences between temporary employment contracts and casual employment contracts can be found in the table below:

Find out more about the different types of employment contracts using this guide.

What clauses do I need to include in a temporary employment contract? Top 3 clauses to include.

1. Duration of employment - temporary roles, by their very nature, will only last for a defined period of time. The temporary employment contract should clearly state the start and end dates of the employment, to help establish the temporary nature of the engagement. Clearly defining the duration will provide clarity to both parties and manage expectations.

2. Details of roles and responsibilities - the temporary employment contract should outline the specific tasks, responsibilities and duties that the employee is expected to perform during their employment. A clause of this nature will help to set expectations regarding the employee’s anticipated scope of work and ensure that both parties are on the same page from day one about what is expected from the employee.

3. Payment terms - a temporary employment contract should clearly set out the rate of pay (e.g. hourly rate or salaried), frequency of payment, and any additional compensation or benefits the employee is entitled to receive (such as reimbursement for expenses or commission based payments). It is really important that both parties are clear on payment expectations from the outset of their relationship, and that is set out in writing to avoid future disputes or misunderstandings.

Don’t forget to include all of the information that you need to provide to employees under UK employment law - use this checklist to make sure you include all the necessary information.

Is there anything else that I should include in a casual employment contract?

In addition to the clauses listed above, with a casual employment agreement it is also important to include a process for calling upon the worker to work. Usually, there will be a clause that expressly states that the employer is under no obligation to provide work, and the worker is under no obligation to accept the work. This maximises the flexibility of the arrangement for both parties.

Someone is likely to be a casual worker (and not an employee) if:

• they occasionally do work for a specific business;

• the business does not have to offer them work and they do not have to accept it - they only work when they want to;

• their contract with the business uses terms like ‘casual’, ‘freelance’, ‘zero hours’, ‘as required’ or something similar;

• they had to agree with the business’s terms and conditions to get work - either verbally or in writing;

• they are under the supervision or control of a manager or director;

• they cannot send someone else to do their work;

• the business deducts tax and National Insurance contributions from their wages; and

• the business provides materials, tools or equipment they need to do the work.

How can Docue help?

Docue’s employment contract template can easily be adapted for either casual or temporary employees, by simply answering a series of simple questions. Your contract will automatically update and be customised based on the answers you provide, so you will have a fully tailored employment contract in no time at all.

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