There have been multiple changes to casual employment laws starting 26 August 2024. Recent legislative amendments have introduced significant changes to casual employment in Australia.
The updated definition of a ‘casual employee’ under the Fair Work Act introduces changes that impact how small businesses manage their workforce. The changes include changes to the way casual work is defined, the pathway to permanent employment, and the responsibilities of both employees and employers.
Small businesses employing casual staff should familiarise themselves with the upcoming changes and consider how the changes may impact employment relationships in their business.
In some cases, there may be a need to consider whether an existing casual employment status should be converted to a different employment type such as permanent full-time or part-time work (sometimes referred to as casual conversion).
If both the employer and employee prefer to continue their existing arrangements, the existing casuals will not automatically become permanent. However, from 26 August 2024 a new pathway will be introduced for eligible employees to request change to permanent employment. This will replace the current rules for changing to permanent employment. Be prepared for changes in employee expectations and have a plan in place to address these requests. Top of Form
The employer can refuse the change if any of the following apply:
- the employee still meets the definition of a casual (for example, if there is no firm advance commitment to continuing an indefinite work)
- there are fair and reasonable operational grounds for not accepting the notification, including:
- substantial changes would be required to the way in which work in the employer’s business is organised
- there would be significant impacts on the operation of the employer’s business, or
- substantial changes to the employee’s employment conditions would be reasonably necessary to ensure the employer doesn’t break any rules (such as in an award or agreement) that would apply to the employee.
