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A Per Diem Employment Agreement is a specialised employment contract that allows you to engage workers on a daily basis without guaranteeing ongoing employment. Under Australian law, this arrangement falls under casual employment provisions, requiring compliance with the Fair Work Act 2009 and relevant Modern Awards to ensure both parties' rights are protected.

When do you need this document?

You'll need a Per Diem Employment Agreement when your business requires flexible staffing solutions for unpredictable workloads. This is common in construction projects where labour needs fluctuate based on weather and project phases, hospitality venues during peak seasonal periods, or healthcare facilities requiring temporary clinical staff. Event management companies also rely on per diem arrangements to staff concerts, conferences, and festivals where worker requirements vary significantly. Additionally, consulting firms often use per diem agreements for specialist contractors who provide services intermittently across different client projects.

Key legal considerations

Your agreement must clearly define the per diem rate, which should include casual loading as required under the National Employment Standards. You need to specify the nature of work, daily hours, and payment terms to avoid disputes. The contract should address superannuation obligations under the Superannuation Guarantee (Administration) Act 1992, as per diem workers are entitled to superannuation contributions if they meet eligibility criteria. Include provisions for workplace health and safety responsibilities under the Work Health and Safety Act 2011, ensuring both parties understand their duties. Privacy considerations under the Privacy Act 1988 should also be addressed if personal information will be collected or stored. Clearly outline termination procedures and notice requirements, keeping in mind that casual employees have limited unfair dismissal rights but are entitled to proper payment for work completed.

Legal requirements in Australia

Under Australian employment law, per diem workers are typically classified as casual employees and must receive casual loading of at least 25% above the equivalent permanent rate as specified in relevant Modern Awards. You must comply with minimum wage requirements, maximum ordinary hours provisions, and rest break entitlements outlined in the National Employment Standards. Superannuation contributions are mandatory if the employee earns more than $450 per month, regardless of their casual status. Record-keeping obligations require you to maintain accurate pay records, hours worked, and leave entitlements for at least seven years. Workers' compensation insurance coverage is mandatory for all employees, including per diem workers. If the employment relationship becomes regular and systematic, the worker may be entitled to casual conversion rights, allowing them to request permanent employment status after 12 months of regular work patterns.