Casual, Part-Time or Fixed-Term? Understanding the different employment types for a Nanny

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 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 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 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.