Changes to Casual Employment from 26 August 2024

New Pathway to Permanent Employment

From 26 August 2024, a new pathway will be introduced for eligible casual employees who wish to transition to permanent employment, replacing the current rules. This change is designed to streamline the process and make it more accessible.

Here’s what you need to know.

Eligibility Criteria

The employee must have been employed for at least 6 months (or 12 months if working for a small business employer).
The employee must believe they no longer meet the requirements of the new casual employee definition.

Exclusions

Employees cannot notify their employer of their intention to change to permanent employment if they:

Are currently engaged in an ongoing dispute with their employer about casual conversion, or
In the last 6 months:
- Their employer refused a previous notification.
- They’ve resolved a dispute with their employer about casual conversion.

Employer’s Response to Casual Conversion Notification

When an employee notifies their employer of their intention to convert to permanent employment, the employer is required to consult with the employee before responding. This includes discussing what will change if the employer accepts the notification and the employee is no longer a casual employee.

A notification is the written notice an employee gives to an employer to convert to permanent employment.
The employer must respond in writing within 21 days of receiving the notification, either accepting or refusing the change.

Accepting the Change

If the employer accepts the change, the response must include information about:

The new employment status (part-time or full-time).
The employee’s new hours of work.
When the change will take effect.

Refusing the Change

The employer can refuse the change for several reasons, which must be clearly stated in their written response. These reasons can include:

The employee still meets the definition of a casual employee.
There are fair and reasonable operational grounds for refusal, such as:
- Significant organisational changes would be required.
- There would be substantial impacts on business operations.
- Changes to employment conditions would be necessary to comply with rules or agreements.
Accepting the change would breach a legal recruitment or selection process.

Disputes about Casual Conversion

If a dispute arises and cannot be resolved at the workplace level, it can be escalated to the Commission. The Commission will initially attempt to resolve the dispute informally through mediation or conciliation. If the dispute remains unresolved, the Commission has the authority to arbitrate, leading to a legally binding decision.

Casual Employment Information Statement (CEIS)

The Casual Employment Information Statement (CEIS) provides crucial information about employment conditions.

Employers are required to provide the CEIS to:

New casual employees before, or as soon as possible after, the start of their employment.
All casual employees of non-small businesses as soon as possible after 6 months of employment, 12 months of employment, and every subsequent 12-month period.
All casual employees of small businesses as soon as possible after 12 months of employment.

These changes are aimed at providing a clearer, fairer pathway for casual employees to achieve permanent employment status. It is important for both employers and employees to familiarise themselves with these new rules to ensure compliance and take advantage of the benefits they offer.

Tools & Resources

Source: Fair Work Ombudsman
Complied & Edited by Tailored Accounts

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