Casual, Part-Time or Fixed-Term? Understanding the different employment types for a Nanny | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.com.au/For-Families) [Nannies](https://paythenanny.com.au/For-Nannies) [Agencies](https://paythenanny.com.au/for-agencies) [Pricing](https://paythenanny.com.au/pricing) [Contact](https://paythenanny.com.au/contact) [Sign Up](https://paythenanny.com.au/signup) [Log In](https://paythenanny.com.au/app/login) Article ------- Casual, Part-Time or Fixed-Term? Understanding the different employment types for a Nanny ========================================================================================= By Mark Hudson · 04 February, 2026 Hiring a nanny is not just about finding the right person. The way you employ them changes what you legally owe. Casual, part-time and fixed-term arrangements all come with different payroll rules, risks and responsibilities. This guide breaks it down clearly for Australian families. ![Casual, Part-Time or Fixed-Term? Understanding the different employment types for a Nanny](https://assets.caresies.io/articles/195/conversions/zQ8MU1YwYuavvbz1PUNl-webp-featured.webp) When families hire a nanny, one of the first questions is often about hours. What is just as important is the employment type. The structure you choose directly affects pay rates, leave, notice periods and termination obligations. Getting this wrong can quietly create underpayments or compliance risks. This article explains the differences using real in-home care scenarios, without heavy award language. Casual nanny employment ----------------------- [Casual employment](https://paythenanny.com.au/articles/nanny-pay-rates-australia) is common when hours are irregular or change week to week. Think after-school care that varies by term, or occasional full days during school holidays. **How pay works**Casual nannies are paid a higher hourly rate. This includes a casual loading, usually 25 percent, instead of paid leave. **Leave entitlements**Casual nannies do not accrue paid annual leave or sick leave. They are unpaid when they take time off. **Public holidays**Casuals are only paid for public holidays if they actually work the day. **Termination and notice**Casual employment can usually end with little or no notice, unless a contract says otherwise. **Key risk for families**If a casual nanny starts working regular, predictable hours over a long period, they may legally be considered part-time. This can trigger backdated leave entitlements. Part-time nanny employment -------------------------- [Part-time employment](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia) suits families with consistent weekly schedules. For example, three fixed days every week during the school term. **How pay works**Part-time nannies are paid an hourly rate with no casual loading. **Leave entitlements**They accrue paid annual leave and personal leave based on their ordinary hours. Over a year, this equals four weeks of paid annual leave, pro-rated to their work pattern. **Public holidays**If a public holiday falls on a normal working day, they are generally paid for that day even if they do not work. **Termination and notice**Notice periods apply and are often written into the employment contract. Minimum notice also applies under the National Employment Standards. **Key risk for families**Families sometimes choose casual employment to avoid leave, even when hours are regular. This is one of the most common compliance mistakes in nanny payroll. Fixed-term nanny employment --------------------------- [Fixed-term contracts](https://www.fairwork.gov.au/starting-employment/types-of-employees/fixed-term-contract-employees) are often used for maternity cover, short-term care, or defined periods like a school year. **How pay works**A fixed-term nanny can be casual or part-time, depending on hours and structure. The fixed term simply sets an end date. **Leave entitlements**If the nanny is part-time on a fixed-term contract, they still accrue leave. The contract end date does not remove this obligation. **End of contract**The contract ends automatically on the agreed date, but notice requirements may still apply depending on how the contract is written. **Key risk for families**Assuming leave is not owed because the role is temporary. In most cases, leave still accrues and must be paid out at the end. Comparing the three at a glance ------------------------------- Casual suits variable hours but costs more per hour. Part-time suits stable schedules and includes leave and public holiday pay. Fixed-term suits defined timeframes but does not remove leave obligations. Choosing the right structure is about matching reality, not just preference. Why this matters for payroll ---------------------------- Employment type affects more than just take-home pay. It determines how payroll calculates leave, super, public holidays and termination pay. If the setup does not reflect actual working patterns, errors can compound quietly over time. The [Fair Work Ombudsman](https://www.fairwork.gov.au/) regularly flags misclassification as a key issue for household employers, especially in childcare. How Pay The Nanny helps ----------------------- [At Pay The Nanny](https://paythenanny.com.au/For-Families), we help families choose the right employment type from the start and adjust it if circumstances change. Payroll is set up correctly, leave is tracked automatically and obligations are met without families needing to interpret legislation. If you are unsure whether your nanny should be casual, part-time or fixed-term, [getting clarity](https://paythenanny.com.au/contact) early can save stress, money and difficult conversations later. [ ![](https://assets.caresies.io/articles/73/conversions/O7PlN3F1VUXRvhB8etRs-webp-featured.webp) ](https://paythenanny.com.au/articles/top-7-tips-to-keep-your-nanny-happy)By Mark Hudson · 12 September, 2021 ### [Top 7 Tips to Keep Your Nanny Happy](https://paythenanny.com.au/articles/top-7-tips-to-keep-your-nanny-happy) Hiring a nanny is just the start—keeping them happy is the real win. From gratitude and boundaries to pay and communication, here are 7 proven ways to retain a great nanny and build a long-term relationship that works for everyone. Plus, how Pay The Nanny can simplify payroll and tax. [Read more...](https://paythenanny.com.au/articles/top-7-tips-to-keep-your-nanny-happy) [ ![](https://assets.caresies.io/articles/148/conversions/sBOhv1v5CEY33KqGGBZO-webp-featured.webp) ](https://paythenanny.com.au/articles/nanny-pay-rates-australia)By Mark Hudson · 12 December, 2025 ### [Nanny Pay Rates for 2026](https://paythenanny.com.au/articles/nanny-pay-rates-australia) Nanny pay rates across Australia have lifted again as we head in to 2026, with all states recording increases for both permanent and casual roles. This update breaks down the numbers, highlights key trends, and explains what shifting wage patterns mean for families and nannies. [Read more...](https://paythenanny.com.au/articles/nanny-pay-rates-australia) [ ![](https://assets.caresies.io/articles/25/conversions/p1jney0SU6mff8myUqtU-webp-featured.webp) ](https://paythenanny.com.au/articles/what-s-the-difference-between-a-nanny-and-a-babysitter)By Mark Hudson · 22 May, 2023 ### [What's the Difference Between a Nanny and a Babysitter?](https://paythenanny.com.au/articles/what-s-the-difference-between-a-nanny-and-a-babysitter) Nanny or babysitter - which is right for your family? While they both care for kids, the roles come with different responsibilities, hours, and employment rules. From casual evening help to a regular daytime presence, we break down what you need to know before you hire. [Read more...](https://paythenanny.com.au/articles/what-s-the-difference-between-a-nanny-and-a-babysitter) [ ![](https://assets.caresies.io/articles/201/conversions/YTi4iqWkrCfi7hqBviwi-webp-featured.webp) ](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away)By Mark Hudson · 09 April, 2026 ### [Do You Still Pay Your Nanny When You Go on Holiday? The Australian Guide](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away) Planning a family holiday during school holidays? If you employ a nanny, it is not as simple as “pausing” work while you are away. In Australia, employment laws still apply. Here is what you need to know to stay compliant and avoid costly mistakes. [Read more...](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away) [ ![](https://assets.caresies.io/articles/151/conversions/DIIbsSY2oYI3xxjWzN6A-webp-featured.webp) ](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia)By Mark Hudson · 20 April, 2025 ### [2025 Guide to Employment Contracts for Nannies in Australia](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia) Hiring the right nanny is step one; step two is a compliant nanny employment contract. At Pay The Nanny, we offer all our customers a free, up‑to‑date nanny agreement built to 2025 Australian rules, so you can hire confidently with our contract for nannies. [Read more...](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia) ![Pay the nanny](https://paythenanny.com.au/images/logo-white.png)Join Our Community Stay in the loop! 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