What is casual conversion?

You may remember a similar article from our December 2022 edition of Workplace Relations News regarding casual conversion. We wanted to take the opportunity to remind you about your obligations towards your employees around casual conversion. 

The process of casual conversion is beneficial for both employees and employer by providing a stable and reliable workforce and reducing costs which may be associated with a high staff turnover.

The National Employment Standards (NES) provide casual employees with a pathway to become a permanent employee. A casual employee can change from full-time or part-time employment at any time if the employer and employee both agree to it. The obligations for employers to offer this to their staff differs for small business owners and non-small business owners. At present, a small business is classified as one employing up to 15 employees, whereas a non-small business employs over 15 employees.

Small business employers do not have to offer to convert their casual employees to permanent employees. However, an eligible casual employee working for a small business employer can request to convert to permanent employment at any time on or after their 12 month anniversary. 

Non-small business employers have an obligation to offer their employees casual conversion if:

• the employee has been employed by the employer for a period of 12 months
• during at least the last six months of that period, the employee has worked a regular pattern of hours on an ongoing basis, and 
• without significant adjustment, the employee could continue to work as a full-time or part-time employee. 

These employers must provide an offer in writing to all casual employees within 21 days after their 12-month anniversary of employment has occurred. Once the casual conversion offer has been made, the employee has 21 days to respond to the offer. 

When can a casual employee request casual conversion? 
For employees to be eligible to request casual conversion they need to meet the same criteria outlined above. An employee however, isn’t eligible to make a request if, in the last six months:

• they’ve refused an offer from their employer to covert to permanent employment 
• their employer has told them in writing they won’t be making an offer of casual conversion because there were reasonable grounds not to make an offer
• their employer has refused another request for casual conversion because there were reasonable grounds to refuse the request. 

Casual employees who believe they’re eligible to become a permanent employee can make a request for conversion every six months. Sometimes employees can still make a request even if their employer has told them in the last six months that they won’t be making an offer of casual conversion. Employees can only do this if they didn’t get an offer because they hadn’t worked a regular pattern of work in the six months before their earlier request but now have. 

Can an employer refuse a casual conversion request? 
Employers can refuse to offer casual conversion or refuse to accept an employee request if there are reasonable grounds to do so. The reasonable grounds are established upon known or reasonably foreseeable factors in the time of deciding not to make the offer. 

Reasonable grounds include:

• the employees position will cease to exist in the period of 12 months after the time the employer decided to not make the offer
• the employee’s hours of work will be significantly reduced in that 12-month period
• there will be a change in the days or times in which the employee’s hours of work are required to be performed
• making the offer would not comply with the recruitment or selection processes required by or under a Commonwealth, State or Territory law. 

The employer must provide the employee with notice and reasoning in writing if they choose not to make an offer or refuse to accept an offer made by a casual employee due to reasonable grounds.

There are still protections at work that apply in these situations. For instance, an employer can’t reduce or change an employee’s hours of work, or terminate their employment, to avoid having to offer or accept a request for casual conversion. For example, an employer can’t deliberately change their employee’s roster so they don’t meet the eligibility criteria. Casual employees are protected against adverse action by an employer because they have a workplace right under the NES to convert to permanent employment. 

It is important to understand your obligations regarding casual conversion as it does require tracking employee anniversary dates and pattern of hours. Although additional effort will be required during the casual conversion process it can result in a more stable and reliable workforce, leading to reduced costs associated with high staff turnover.  This is why it is recommended that regular check -ins are followed with employees which will assist in managing this process.
 

	Workplace Relations Support  Workplace Relations Support can help guide members as to whether they are required to offer casual conversions to their casual employees. You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au.
	Workplace Relations Toolkit Workplace Relations Toolkit subscribers receive templates on a Casual Conversion Policy for their practice as well as casual conversion letter templates tailored to both small and non-small businesses as part of their subscription.
	Workplace Relations Consultancy Workplace Relations Consultancy can guide members through the process of casual conversions and how to respond or refuse requests from employees.