We continue to see dairy farm businesses get caught out by the misclassification of employees — especially when casual roles evolve into something much more permanent over time.
One example involved the wife of a Farm Manager who was employed on a casual agreement to rear calves. Over time, her role expanded significantly — she began helping with milking, moving stock, and general farm maintenance. Despite her role shifting well beyond the original agreement, and her working nearly every week (typically 4–5 days), she remained on the same casual contract for over 18 months.
Eventually, she raised a personal grievance, arguing she should have been on a permanent part-time agreement. The resulting payout cost the employer around $12,000 — though it could easily have been significantly higher.
What contributed to this cost?
The long period of employment
The wide range of duties she performed
The regularity and volume of hours worked
Her participation in team meetings and being rostered into regular shifts
This isn’t an isolated issue. We’ve seen other businesses face substantial penalties due to similar missteps — particularly when family members or friends of permanent staff are brought in on casual agreements that quietly shift into regular roles over time.
If you have “casual” workers, ask yourself:
Are they on a roster?
Do they work regular hours?
Are they expected to be available when asked to work?
Has their role changed since they started?
Have they been employed for more than six months?
Are they expected to notify you if they’re unavailable?
Do they have a reasonable expectation of ongoing work?
Is someone in your team (e.g. a manager or supervisor) setting regular expectations with them?
If you answered yes to any of these, then their status as a casual employee might not hold up under scrutiny.
This is a common grey area in the dairy industry, particularly as we start thinking about relief milkers and calf rearers for the new season, and it’s easy to unintentionally get it wrong. If you’re unsure whether your contracts are fit for purpose, give us a call — we’re here to help you get it right before it becomes a costly mistake.