Differences Between Part-Timers and Casual Workers

A decade ago, most would say there were two kinds of employment, full-time and part-time. Did you know there's also casual employment? We'll get to that in a moment.

Technological advancement and the effects of the pandemic caused many people to find new ways to seek income in a more flexible way. Now, there are also home-working employees. Are there differences between part-timers, casual workers, and home-working employees?

Part-time employees

• A part-time employee is a worker engaged under a contract of service with an employer.

• Their work hours are between 30% - 70% of that of a full-time worker with that same employer. 

• A part-time worker may be engaged permanently or on a fixed-term contract basis.

• A part-time worker must have a formal contract of service. Simply asking them to fill up a form or contracting their services verbally, although having a legally-binding effect, may not be enough if a dispute arises later.

Casual employees

• The concept of 'casual employment' was introduced into Malaysian legislation for the first time in 2010 through the Employment (Part-Time Employees) Regulations 2010. 

• A casual employee is someone who engages occasionally or on an irregular basis, as and when needed. 

• Casual employees' weekly working hours do not exceed 30% of the weekly working hours of a full-time employee.

• For instance, if full-time employees work a 48-hour week, casual employees work no more than 14.4 hours per week.

Home-working employees

• The Employment (Part-Time Employees) Regulations 2010 stated that home-working employees perform work for an employer within their residence, irrespective of their occupation.

• Just like casual employees, they work up to 30% of 48 hours.

• Their employment is not defined under the Employment Act of 1955.

Out-worker

• Another engagement category is "out-worker", as cited in the Employment (Terminations And Lay-Off Benefits) Regulations 1980. 

• Out-worker means a person to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished or repaired or adapted for sale in his own house or on other premises, not under the control or management of the person who gave out the materials or articles. 

• The provisions of the Terminations And Lay-Off Benefits) Regulations 1980 do not apply to out-workers.

The rights of part-timers

In Malaysia, part-timers are protected by statute, particularly the Employment (Part-time Employees) Regulations 2010. 

The Regulations are part of the Employment Act of 1955. It means that, besides the protection afforded to part-time employees under the 2010 Regulations, they are also protected by the Employment Act.

Here are the rights of part-time employees:

1. Overtime: If the part-time employee is required to work extra hours exceeding a full-time employee's regular hours, they are entitled to overtime pay of not less than 1.5 times their hourly rate of pay for each hour or part thereof.

2. Public Holidays: A part-timer gets to enjoy not less than seven (7) gazetted public holidays, including: 

   1. Hari Merdeka

   2. The King's Birthday

   3. Birthday of the State Ruler

   4. Labour Day

   5. Any three other public holidays declared under the Holidays Act of 1951

3. Annual Leave: Part-timers are entitled to annual leave:

   1. Less than two years of service: not less than six days

   2. More than two but less than five years of service: not less than eight days

   3. Five years or more years of service: not less than 11 days

4. Sick Leave

   1. Less than two years of service: not less than ten days

   2. More than two but less than five years of service: not less than 13 days

   3. Five years or more years of service: not less than 15 days

5. Statutory contributions: The part-time employees' wages are subject to EPF, SOCSO and EIS contributions. 

6. Rest Day: 1 day if the part-time employee works five days or more with total working hours of not less than 20 hours per week.

Is an employee considered a part-timer if they work for a short time?

• Employers frequently make the mistake of associating part-time employees with employees on a short, fixed-term contract because the employee works for a "brief period", for example, an employee on a 6-month contract. But there is a significant distinction between the two.

• Fixed-term workers are hired for a set period of time and are likely to work full-time hours. The agreement automatically terminates after the agreed-upon term, and the worker mentioned above no longer qualifies as an employee.

• Part-timers are in a different scenario; they will continue to be considered employees as long as their contract is in effect.

Do casual workers and home-working employees enjoy the same rights as part-timers?

• No, casual workers and home-working employees do not enjoy the same rights as part-time employees as stated under the Employment (Part-Time Employees) Regulations 2010.

• Unlike part-time employees, casual and home-working employees are not defined under the Employment Act 1955. 

• This means that casual workers and home-working employees are not entitled to:

  • Overtime pay,

  • Public holidays,

  • Annual leave,

  • Sick leave,

  • Maternity leave,

  • And rest days.

 The table outlines the differences between full-time employees, part-timers and casual workers.

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