The current casual conversion rules require employers to offer permanent employment to casuals in prescribed circumstances. This will change shortly when employees will be able to request conversion to permanent employment.
A key change to give longer term casuals improved job security is the process of casuals converting to permanent employment at key points in time. A conversion process was therefore inserted into the Fair Work Act 2009 requiring employers to offer permanency to casual employees under certain conditions.
Under amendments to the Fair Work Act casual employees who believe their working arrangements have changed can notify their employer to move to permanent employment.
The qualifying period is 6 months service as a casual or, in the case of a small business, 12 months service.
Under the changes the employee will initiate (request) the change from casual to permanent.
The employer is required to consider the employee’s request and either offer a permanent position or provide reasons why the change to permanent is not to be offered.
The Fair Work Commission will be able to resolve disputes - including by arbitration. Where a casual employee makes such a request their rights are protected including the termination of their casual employment.
The change from casual to permanent can take place in the following circumstances:
- Where agreement is reached between an employer and employee.
- Where the Fair Work Commission resolved a dispute in favour of the employee seeking to become permanent; or
- Where an enterprise agreement provides a specific pathway for an employee to become permanent.
It is recommended that employers review how and why they employ casuals. How the work is offered, the regularity of the hours of work or how they may change due to external factors.
Where a casual employee is employed long term on a regular rostered hours basis it will be very difficult to provide an argument to deny the change to permanent employment.
A casual employee’s status change will only occur when an employee wants to change. If an employer wants an employee to change, they can offer them a new permanent contract but the employee can refuse such an offer thereby remaining as a casual.
In my experience, it is often the casual employee that wants to stay employed as a casual. They would prefer to retain the higher rate of casual pay due to the casual loading rather than gain access to paid leave entitlements.
The above pathway, based on employee requests, will take place from 26 August 2024.
If you require assistance in reviewing your casual employees or are unsure how to respond to a request for conversion, please do not hesitate to get in touch.
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Kind Regards
Michael Schmidt
M 0438 129 728
www.hunteremployeerelations.com.au
Industrial Relations - Employment Law - Workplace Performance
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