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The only times I have seen it is if a company is having a hard time recruiting a contractor for some work so they have to fly someone in (usually in rural or remote locations). That person is not likely to take money out of their pockets for what ever strange living situations they find themselves in there. They want everything covered and to go home with a nice fatty bank account full of money. Not getting fleeced on rent or food or rental cars or what ever to go home broke.
You assumed incorrectly. Per diem employment means as needed by the employer -- not as wanted by the employee. They can offer your 0 hours per week, or 24 hours per week. They don't have any obligation to give you any hours per week. If they wanted someone for say 20 hours per week every week, it would be more beneficial to fill that as a part time position as opposed to a per diem position. If you plan to be on vacation, let the scheduling person know in advance. The tolerance for extended vacations would depend on how often they need you, and how many other are capable of filling in while you are gone.
Per diem is a daily allowance (per day) for living expensive while traveling. Also happens to be non-taxed (and is an easy way to ramp up take-home pay).
In the medical field, the term you're referring to is "prn", Pro re nata, and means "as needed". Prn can be a Whole bunch of things, but they are Typically like substitute teachers, only used when one of the main staff isn't working or the work-load is temporarily higher.
A per-diem is a daily allowance. When I was on business in Boston, we received a hotel and a daily per-diem for meals. If you ate reasonably, you could pocket the rest.
Nurses who cover shifts at various facilities without being employed full-time at any of them are called per diem nurses. A word can have more than one meaning.
In the world of employment, per diem has two common meanings. The first has to do with money the second with work. Since you mention work, your per diem means you are basically an "as needed" worker. You have no set hours or work schedule and is called upon when the employer needs you. As a per diem worker, there shouldn't be any expectation on your part as to getting any specific work and there should be no expectation on the employers part that you will be free every time they call on you.
As a per diem worker, you decide how and when you want to make yourself available. As an employer of per diem workers, they decide if they want to call on you. Limiting yourself to only a few hours a week when they have a need for more, could result in them passing you over for someone with greater availability. As an employer you want to treat per diem workers well so they continue reporting when needed otherwise you risk a pool of who-knows-whom when you call on them.
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