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Changes to Casual Employment Legislation

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Categories: Employees | Legal

Changes to Casual Employment Provisions under the Fair Work Act 2009 (Cth)

Written By: Ashleigh Tuvera | Employee Relations Adviser

 

Recent changes to the casual provisions in the Fair Work Act 2009 (Cth) have now come into effect. Key updates include:

  • A revised definition of a casual employee

  • A new pathway for casual employees to transition to permanent employment (known as the Employee Choice Pathway)

  • Expanded responsibilities for employers

Definition of a Casual Employee

From 26 August 2024, the Fair Work Act was amended to define a casual employee as someone:

  • With no firm advance commitment to continuing and indefinite work, taking into account the real substance and true nature of the employment relationship; and

  • Who receives a casual loading or is paid a specific casual rate under an award, registered agreement or employment contract.

Employers and employees should consider the practical reality of the relationship, not just what is stated in the contract, including any mutual expectations or understandings.

Casual Pathway to Full-Time or Part-Time Employment

A new Employee Choice Pathway allows eligible casual employees to formally request conversion to permanent employment if they believe they no longer meet the definition of a casual employee. This replaces the former casual conversion process.

Start dates for eligibility to submit a notice:

  • 26 February 2025 – for non-small business employers

  • 26 August 2025 – for small business employers

A small business is defined as having fewer than 15 employees, including those employed by associated entities.

Eligibility Criteria

To be eligible to request conversion, a casual employee must:

  • Genuinely believe they no longer meet the definition of a casual employee; and

  • Have been employed for:

    • At least 6 months (non-small businesses), or

    • At least 12 months (small businesses)

When Casual Employees Cannot Request Conversion

A casual employee is not eligible to make a request if:

  • They are already in a dispute with their employer about casual conversion

  • The employer refused a previous request within the past 6 months

  • They have resolved a related dispute through formal dispute resolution

  • They were employed before 26 August 2024 and, within the last 6 months:

    • Refused a conversion offer from their employer

    • Were advised in writing that an offer would not be made

    • Had a previous request for conversion refused

Casual Conversion Process

  1. Employee submits a written request
    A written notification must be provided by the employee seeking conversion.

  2. Employer consults with the employee
    Discussion must cover:

    • Proposed change (full-time or part-time)

    • Work hours

    • Date the change would take effect

  3. Employer responds within 21 days in writing, either:
    a. Acceptance, with written confirmation of:

    • New employment status

    • Hours of work

    • Effective date (typically the next full pay period)

    b. Rejection, only on valid grounds such as:

    • The employee still meets the casual definition

    • Legal recruitment/selection requirements cannot be met

    • Operational reasons (e.g., significant impact to business operations, breach of an award or agreement, etc.)

Employer Responsibilities

Employers must provide the Casual Employment Information Statement (CEIS) to all casual employees. It outlines:

  • The casual employee definition

  • The process and eligibility for conversion

  • Reasons why a request may be refused

  • The Fair Work Commission’s dispute resolution role

The CEIS must be provided:

  • Before or as soon as possible after a casual starts work

  • When the employee reaches 6 months (non-small business) or 12 months (small business)

  • Every 12 months for ongoing casual employees

Additional Information

Protections at Work
Employers must not take adverse action to avoid their obligations, including:

  • Reducing hours or altering rosters

  • Terminating employment

  • Taking action against an employee for requesting conversion or being involved in a related dispute

Sham Arrangements
It is unlawful to misrepresent employment to avoid entitlements. For example:

  • Dismissing a permanent employee to re-engage them as a casual for the same or similar work

  • Persuading a permanent employee to sign a casual contract to do the same job

Conclusion

These changes reinforce the rights of casual employees and set clear expectations for employers. To ensure compliance and reduce risk, businesses should review and update their internal procedures, contracts, and employee onboarding processes accordingly.

Helpful Resources

For more detailed information, refer to:

  • CCIWA’s Casual Employment Information Sheets

  • Employee Relations Helpline – call (08) 9365 7660

  • Email: advice@cciwa.com

 

Article taken from - 03. March - ERH Regional Article -28032025.pdf

Last Updated: March 2025