Casual Changes
There are changes now in play for casual employees
How we define casuals and the way we manage conversion to permanent employment is different from August 2024. This summary will help you get across the main points.
Let's define a casual employee
A person is considered a casual employee if, at the time of hiring there is no firm advance commitment to ongoing work. The employee relationship is flexible and they will;
have the option to accept or reject an offer for work and you as the employer have the choice to offer work or not.
be paid a casual loading or a casual rate as per an award or contract.
No more set and forget with the CEIS (Casual Employment Information Statement)
If you have provided your casual employees with an employment contract and a copy of the Casual Employment Information Statement when they started, but not looked at either since, note that the following steps need to be taken in the future.
Step 1 - 6 months (12 months for small business) from their start date, a casual is required to receive the Casual Employment information statement again.
Step 2 - if the casual believes they have been working 'more like a permanent employee' during this time, and seeking to become a permanent employee, they can request to convert to a permanent position'. The Casual Employment Information Statement details the conversion process for them.
Step 3 - You as the employer will need to be across this process, assess and respond in writing to their request within 21 days, you may accept or deny the request.
Note - you must be able to explain fair and reasonable business grounds for your decision. This can be unique to the business and there will be many scenarios where converting from casual to permanent may not be possible for you as a business.
Step 4 - All casuals must receive the CEIS every 12 months from you.
Step 5 - Make sure you download the updated statements from the fair work website. https://www.fairwork.gov.au/employment-conditions/information-statements. You will find all the information statements and additional information. Note: The National Employment Standards which forms part of the Fair Work Information Statement has also been updated. So you will need to update your links or your onboarding documentation to ensure you have the latest versions.
Step 6 - Provide the new CEIS to all your current casual employees now.
Step 7 - Check your casual contracts and update them if needed. Some casual contracts will reference old legislation and old information statements.
Step 8 - Put a process in place to initiate the regular distribution of the CEIS.
Looks like a duck…..
You may have provided a casual contract, and the employee is being paid at casual rates - what happens in practice weighs in heavily now. If the relationship day to day resembles a permanent employee arrangement, it’s time to review these arrangements.
Communicate
The most important factor as always, is to have good communication with your team. Consult, listen, allow them to ask questions. Know where you stand in your business so that you can explain your position if a request comes to you. Understanding where people are coming from and why they may need to change, will be an important factor in having the right arrangements in place that are mutually beneficial.