Casualization is basically defined as the change of the workplace, having predominantly temporary workers rather than permanent workers. Workforce casualization is the process in which employment shifts from a preponderance of full-time and permanent positions to casual and contract positions. Many social implications as a result of casualization have an impact on society & employees. In Australia, 35% of all workers are casual or contract employees who are not paid for sick leave or annual leave.
In the United Kingdom, 53% of academics teaching or doing research in British universities manage on some form of insecure, non-permanent contract, ranging from short-term contracts that typically elapse within nine months, to those paid by the hour to give classes or mark essays and exams. There are many positive and negative effects of casualization on both employers and employees. As a result, there have been many social and economic implications. The increasing casualization of employment affects the prospects of Rural Development too.
It is due to a lack of opportunities in the organized sector people start working as casual workers. Further, the flexibility in terms of Working conditions and no special follow up of Labour Laws, etc. makes companies recruit more Casual Workers. Employers argue that these kinds of working arrangements and contracts are necessary to give them the flexibility they need. Lack of Budgetary support also promotes Casualisation as in the case of Education, in Govt Schools, various state govts are recruiting casual teachers rather than permanent teachers.
- Businesses do not have to pay benefits such as sick and annual leave
- Flexibility in case of the labor is high, with the chances of increasing & decreasing workforce as per necessity
- Efficient usage of the budget & cost. It can reduce expenses by hiring casual employees only when needed
- It may sometimes be seen as a scope for “transition to permanent employment” for casual employees
- There are no benefits such as annual, sick, and careers leave which can be very stressful for employees.
- Casualization has left a lot of workers with the risk of losing their jobs, as they were recruited on a temporary basis.
- It is the reduction in full time or part-time employees and an increase in casual employees
- Chances of the business going nowhere are high, without a stable workforce in place.
- There may be a chance of low employee for the casual employee, due to lack of access to professional development, internal promotions, etc.