Changes to Casual Employment Legislation – August 2024

On 26 August, under the recent Closing Loopholes legislation, significant changes to casual employment legislation in Australia are set to take effect. These key changes aim to redefine casual employment and streamline the process for casual employees to transition to permanent employment. Let’s look at both of these key changes.

New definition of casual employment

An employee will be considered casual if there is no firm advance commitment to continuing and indefinite work. This assessment will consider the nature of the employment relationship, including:

• whether work can be accepted or rejected,
• the availability of future work and
• if the work is typically performed by full-time or part-time employees.

Please note a casual employee must always be paid the appropriate casual pay rate in accordance with the Award and their classification under it.

Casual to permanent conversion (employee choice pathway)

Previously, employers were required to offer permanent positions to casual employees after 12 months of regular work. From 26 August, the shift will move to the employee who can notify their employers, in writing if they wish to transition to permanent status after six months of employment (12 months for small businesses).

Employers:

• must respond in writing within 21 days to the employee’s request,
• must confirm in the response the employee’s work hours and effective date of change and
• Can only reject the request if the role still meets the definition of casual or there are operational grounds to do so.

Employer obligations and protections

Casual employees must continue to receive the Casual Employment Information Statement, along with the Fair Work Information Statement, at the start of their employment and periodically thereafter if any changes have been made.

It also important to note that protections have been included to prevent employers from dismissing permanent employees to then re-hire them as casuals and from making false statement to influence employees into casual contracts.

These changes aim to provide greater clarity and security for casual employees while balancing the needs of the employers.

These changes will commence on 26 August. However, there will be a transitional period where the current casual conversion provisions will still apply to existing casual employees.

The Workplace Relations team released the Rates of Pay Guide earlier this month which aims to assist employers to determine the relevant award and classification an employee would be under. If you would like a copy of the Rates of Pay Guide, please contact us on 07 3872 2264 or email us at workplacerelations@amaq.com.au