Section 37: when casual work becomes a term contract
Section 37 of the Employment Act stops employers keeping someone “casual” indefinitely. Here is what it covers in general terms. Courts have read it in different ways, so take advice on a specific case.
Hire through Klokd →Who is a casual employee
Under the Act, a casual employee is paid at the end of each day and is not engaged for longer than 24 hours at a time.
When the section applies
- A casual employee works for a period, or a number of continuous working days, that add up to at least one month; or
- The work they do cannot reasonably be expected to be finished within three months.
How days are counted
Rest days and public holidays that fall within the period count as continuous working days.
What changes
The contract is treated as one where wages are paid monthly, and the notice rules for monthly contracts apply to ending it. Whether conversion is automatic has been argued in the courts, so check current case law or take advice.
How Klokd helps venues stay on the right side
Klokd counts the days each worker has worked for your venue. It alerts you at 20 days, asks you to acknowledge at 25, and stops new bookings of that worker at 30, so you can decide in time whether to offer a term contract.
Last reviewed 26 October 2026. General information, not legal advice.