The casualisation fallacy: Casual work is stable and many workers like it that way

Casual work is a feature, not a bug, of the Australian work landscape. While, for some, permanent work is preferable, many employees enjoy the flexibility that only casual work can offer.

The federal government’s proposed industrial relations reforms include broadening the definition of casual employment to allow casual workers easier access to permanent, full-time work. While the bill is designed to “close the loophole” allowing employers to circumvent their responsibilities by not affording the security of permanent work to employees whose employment should be treated as such, others are concerned the bill is founded on false presumptions.

Specifically, some have taken issue with the idea that all workers want permanent, full-time work.

“The notion that employees don’t want flexibility in work is garbage,” said Tom Amos, chief executive and co-founder of Sidekicker.

“You ask any employee what they want, it’s flexibility. That’s why there’s been such a movement to hybrid work. There is a place for causal labour, and it’s irresponsible to say that’s not the case.”

That said, Mr Amos added that exploitation is never acceptable. When working as a full-time hire, workers should be given the appropriate protections. However, many enjoy the flexibility of casual work, and it serves no one to pretend otherwise.

Fearmongering and generalisations tend to colour the casual work discussion from both sides of the political aisle. This article is an attempt to contextualise the conversation.

Politicisation

“It’s just pure politics,” said Mr Amos. What he is referring to is the way both sides of the Australian political aisle treat casual employment. There’s an assumption on the Labor side that what workers want is permanent, secure employment and that casual work isn’t cutting it. On the Liberal side, the idea is that employers should be free to contract with employers as suits the particular needs of their business.

Both sides are half right. The truth, said Mr Amos, falls somewhere in the middle. Casual employment suits some employees just as it suits their employers. But when it is used exploitatively to shirk the responsibilities that would attach to an employment relationship that is really full-time work in all but name, this is wrong.

“What we see most businesses using casuals for is to deal with those seasonal peaks. If your demand for labour is gonna go up exponentially over a short period of time, then the only model that works is casual. Those workers get remunerated accordingly,” he said.

For many workers, casual employment isn’t a concession; it’s desirable. “We see very few business workers take up casual conversion when it’s offered. We’ve seen a rise of people wanting to work for platforms like Uber,” said Mr Amos.

“The reality is you can’t put humans into a box. There are some people that would love a permanent job with the same company, and there are some that want to move around and have a bit more flexibility.”

More flexibility, not casualisation

When asked whether he predicts a shift to a more casualised workforce in coming years, Mr Amos said it was unlikely. For years, many despaired over an increasing casualisation of the Australian workforce. With the growth of the “gig economy” and the rise of platforms like Uber, Upwork, Fiverr, and, indeed, Sidekicker, it’s no surprise many diagnosed a rise in casual employment. But the data, said Mr Amos, simply doesn’t bear this out.

“I think COVID-19 did change things … I think people want a little bit more flexibility in how they manage their time. They might go off and do some admin for an hour or two a day and then log on later at night,” said Mr Amos.

“But I don’t think we’re going to see this trend where younger workers want [more casual] employment. The trend is flat, and I probably don’t see anything changing.”

Indeed, the rates of casual work have remained more or less table since the late 1990s. Between 1994 and 1998, the share of casual employment grew by 70 per cent but has floated around the 20 per cent mark since then.

As noted by the Australian Industry Group in 2016: “While many different views will be expressed about the benefits of increasing or reducing flexibility to engage casuals, one indisputable fact is that the level of casual employment has not increased in Australia for the past 18 years.”

For more on the Closing Loopholes Bill, read our explainer here.