Running a business means constantly balancing the needs of the business against the costs of additional staff or machinery and the potential bottom line. In most cases it is a constant juggling act.
That’s why you need to think carefully before you take on any new workers. A permanent member of staff has an array of rights and it can be difficult to get rid of them; even if the business genuinely does not need them!
Fortunately, there is a solution in the form of Brix Projects where you can get the staff you need. But first, you need to understand the difference between casuals, contractors and labour hire.
The Casual Worker
A casual worker is someone who is either taken on for a specific short term contract or they are given a contract with very few hours. This makes them very flexible and easy to remove if the company no longer needs them.
Casual workers have the least amount of rights. They will not have holiday entitlement or sick pay but they should be given a higher rate of pay than a standard worker. This is referred to as casual loading and reflects the fact they are essentially on call for your needs.
The Contractor
The contractor is never employed by you. They are a separate business entity, whether a one man band or a multimillion dollar conglomerate.
Great examples of contractors are electricians, plumbers and computer technicians.
You will hire a contractor to come to your business and perform a specific task. In effect you are their customer. You should agree a price before they start the work and pay them after they have completed it.
All insurance and other associated costs are the responsibility of the contractor; you are simply hiring them to complete a specific job. The decision regarding whether they use your tools or must supply their own is yours; either is acceptable.
In general the timescale of a job will be agreed but the contractor retains control over their own time; you are simply using their service to get a job done.
Labour Hire
There are similarities between labour hire and contractors in that you can use a labour hire employee to complete a specific task.
However, the labour hire employee is an employee of a labour supplying firm. Their entire job is to match people and skill sets to business needs.
A labour hire will work for you as though they are one of your employees although they are still actually employed by the labour hire agency. The agency is responsible for all the costs associated with this type of staff; you simply pay the agreed hourly rate.
This is a great way to get short term extra help and avoid the issues surrounding firing an employee. You can even swap a worker if you are not happy with the service the first one is giving you; it’s the agency’s job to make you happy!
