Casuals - keep on top of the rules!
Casual Employment - Employee choice pathway
In August 2024 Fair Work changed the way that casual employees can transition to permanent employment and the final stages of this has now been introduced. For small business owners (under 15 employees) this kicks in, from August this year (along with the right to disconnect) for everyone else, it’s in place now.
The main difference between the previous casual conversion legislation and the new "employee choice pathway" under the National Employment Standards (NES) released in 2024 lies in the way employees initiate the transition from casual to permanent employment.
Under the earlier casual conversion legislation, casual employees could request conversion to permanent employment, but the employer was obligated to make an offer to casual employees who had been employed for 12 months, under certain conditions. Employers could refuse casual conversion requests only based on specific operational reasons.
With the new "employee choice pathway" introduced in August 2024, casual employees now have the right to initiate the change to permanent employment themselves. They can notify their employer in writing of their intention to move to full-time or part-time status after meeting eligibility criteria (at least 6 months of employment, or 12 months for small businesses). The employer must respond within 21 days, but refusal is allowed only for certain operational reasons. This shift gives more control to the employee in deciding when to seek permanent employment status.
This is probably a good time to make sure you also have the latest Casual Information Statement and have provided to all your employees on starting or after 6 months (or 12 months for small business owners) and every 12 month ongoing. Remember that for casuals also receive the Fair Work Information Statement when they start with you.
For more detailed information about conversion and templates both you and your employee can use, visit the fair work website below.
If you need any help determining the rules, reach out.