Effective August 26, 2024, there will be significant changes to casual employment. These changes redefine casual work, pathways to full-time or part-time employment, and responsibilities of employees and employers.
- For employers with 15 or more employees, there is a revised definition of casual employees and a new employee choice mechanism for casual conversion will take effect.
- For small business employers, these changes will apply from February 26, 2025. Employers must provide the Casual Employment Information Statement (CEIS) during onboarding and at regular intervals thereafter.
Change Breakdown
To understand these casual employment changes further, keep reading to learn more about each individual one.
Definition of a ‘Casual Employee’
A casual employee is defined as an individual:
- Without a firm advance commitment to ongoing and indefinite work
- Entitled to casual loading or a specific rate of pay
These changes are in place starting August 26, 2024 for employers with 15 or more employees. To determine if employment is casual, parties (including the Fair Work Commission) can consider the “real substance, practical reality, and true nature of the relationship,” which includes how the work is performed.
Existing casual employees will continue to be classified under the current definition. The new definition will apply to new casual hires starting from August 26, 2024. This change may introduce some uncertainty for employers, who will need to regularly reassess their engagement of casual employees.
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Casual Conversion through Employee Choice
Effective August 26, 2024, current casual conversion arrangements will be replaced. Employers with 15 or more employees will no longer need to offer casual conversion to employees. This change will take effect for small business employers on February 26, 2025.
Employee Choice Pathway offers eligible employees a conversion opportunity
With the new Employee Choice mechanism, employees who have worked for at least six months (or 12 months if employed by a small business) may notify their employer in writing if they believe they no longer meet the casual employee definition. Upon receiving such a request, the employer must:
- Consult with the employee within 21 days.
- Provide a written response either accepting or refusing the conversion.
Employers can refuse conversion requests
Employers may refuse the change request for reasons including:
- The employee still meets the casual employee definition
- There are fair and reasonable operational grounds for refusal
- Accepting the request would violate a recruitment or selection process required by law
During the transitional period from August 26, 2024, to February 26, 2025, existing casual employees will retain their current casual conversion rights.
Casual Employment Information Statement (CEIS)
As per current practice, all employers must provide new casual employees with the Casual Employment Information Statement (CEIS) either before or as soon as possible after the start of their employment. Starting August 26, 2024, employers will also need to provide the CEIS at regular intervals:
Non-Small Businesses
- After 6 months of employment.
- After 12 months of employment and every subsequent 12 months.
Small Businesses
- As soon as possible after 12 months of employment.
How do casual employment changes affect you as an employer?
Clear communication with casual employees about their employment status is now more crucial than ever. This should be clearly reflected not only in the employment contract but also in all correspondence with the employee and through consistent conduct.
With the new casual conversion right, the employee choice framework shifts some responsibilities from employers to employees. However, employers must be careful not to miscategorise employees and must pay attention to conduct post-casual employment when considering whether casual employment might become permanent. Employers still have obligations to respond to an employee’s request for conversion.
Employers must fulfil their current obligations to offer conversion to permanent employment up to and including 25 August 2024, with new changes taking effect on 26 August 2024. For small business employers, these changes will take effect from 26 February 2025.
During the onboarding process of a new casual employee, employers must ensure that the Casual Employment Information Statement is provided.
Need advice on employment law and managing casual employees?
If you need assistance with your employment contracts or encounter a dispute with an employee over their employment rights, contact our team of Employment Law experts today!
Disclaimer:
The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.
Greenhalgh Pickard’s Employment Law Team
