Q: I’m just wondering what your thoughts are on best practices for employees who consistently move between contracts/ employment agreements.

One of our entities has a large turnover and number of vacancies, and because of this, we have staff that are moving from casual contracts to fixed term and then reverting back to casual to cover while recruitment takes place – all within a continuous period.

I am now getting confused as to how we should be dealing with these employees in the payroll system. Should they be terminated each time and reinstated with a new start date every time their agreement changes? We sometimes have staff coming back about their sick leave, arguing that they have been continuous for six months (which is true) but because of their constant change in employment, the dates keep changing.

I understand fixed-term employees going to permanent going as continuous. But it’s these casuals covering for a fixed term that’s getting me.

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A: As long as the fixed term is used correctly based on a start date to an end date, it should always result in termination pay. If the fixed term turns into an FT job, then a decision can be made on leave, etc., moving it over, or a termination can just be done. A termination stops all leave (on the termination date) and resets it if employed again; this includes all FBAPS leave. If treated as continuous, it must not have been a true FT.

If the fixed term terminates and the employee goes to a casual job, leave is paid out on termination (if pay as you go is not being used) because a real casual job does not have days, and any leave such as SL would not be valid.

Of course, an employer can always do better, but carrying leave over into a new period of employment can seem to be saying the employee is more than they are (the casual is not really a casual as they have leave).

What to do?

The employment agreement should be used (beefed up) to clearly state what will happen on termination so the employee is not misled that leave ends on termination.