Changes to casual employment come into effect from 26 August 2024. The changes include redefining what a casual employee is, and the opportunity for them to convert to permanent employment. Casual conversions have been referenced in the award and part of the Act since 2010, with the upcoming changes not representing any substantial change, but rather re-defining the approach of the conversion from a casual employee to permanent.
From 26 August 2024, a casual employee will no longer be defined by just their contract type, but by assessing if there is firm advance commitment to continuing and indefinite work, whether the employer can offer or not offer work to the employee, the employee can accept or decline the work, and the employee has an entitlement to receive a casual loading.
From 26 August employers will no longer be required to assess their casual employees’ work patterns and be obliged to offer casual conversion to employees who qualify. Employees will be able to advise employers of their intent to convert to permanent employment if they have been working at least 6 months (12 months for a small business) and believe they no longer meet the requirements of a casual employee (outlined above).
The employer must then consult with the employee, including discussing what will change if the employee moves from casual to permanent – including losing the casual loading component to their hourly rate, having set working days/hours and other changes. The employee is then provided with written notice either accepting or declining the conversion. Specific criteria must be met in order to decline the request.
To accept the casual conversion, employers will need to confirm the change in writing, including:
- The new employment status (full time/part time)
- The new hours and days of work
- The new hourly rate (if changing)
- The date the change will be effective from
To decline the request, the response must include the reason for refusal. Employers can decline a request based on the following reasons:
- The employee still meets the definition of a casual employee
- Substantial changes would be required to the way work is organized
- There would be significant impacts to business operation
- Substantial changes to the employees’ employment would be required to ensure the new contract still aligns with the relevant award or agreement.
Any disputes that arise should attempt to be resolved within the business. For disputes that cannot be resolved within the business, these can be escalated to the Commission, with mediation or conciliation as the first steps.
