We wanted to bring to your attention the ongoing discussions about casual employment in the media. You might have heard about the proposed changes in this area by the Federal Government as part of their upcoming industrial reforms.

 

What is Casual Employment?

 

Casual employment involves job offers without a firm commitment to ongoing work or set hours. Casual employees have flexible schedules based on employer needs and accept the position with the understanding of its casual nature, entitling them to higher hourly rate of pay with a 25% loading but without benefits like paid leave. The determination of casual status is made at the time of job offer acceptance, and awareness of legal distinctions is crucial for compliance with employment regulations.

The main goal of these potential changes is to make it easier for casual employees to convert to full-time work if they wish to do so. While these reforms are still under discussion and haven’t been implemented yet, we want to ensure you understand your current obligations regarding casual staff.

Here’s what you need to know about casual conversion:

• If a casual employee has been working with you for a regular pattern of hours for an extended period, usually around 12 months, they might be entitled to casual conversion.
• Certain casual workers have the right to ask to become full-time or part-time employees under the National Employment Standards (NES). This is called casual conversion.
• To determine if you need to offer casual conversion, consider the following criteria:
  • The employee has been working with you as a casual for 12 months.
  • They have been working a regular pattern of hours for at least 6 months continuously.
  • They can continue working those regular hours as a permanent employee without significant changes.

Now, you might be wondering if you can refuse to offer casual conversion. 

The answer is yes, but it must be based on reasonable grounds, which will depend on the unique circumstances of your business.

Some examples of reasonable grounds for refusal include:

• The position won’t exist within the next 12 months.
• There will be a significant reduction in the hours of work.
• The days and times you require the staff member to work will change significantly, and they won’t be available to work.

Here’s what you need to do to stay compliant:

• Make sure you provide your casual staff with the Casual Employment Information Statement at least once every 12 months. This statement outlines their rights and entitlements as casual employees.
• Any requests for casual conversion from your employees should be made in writing.
• If you have eligible staff for casual conversion, you must make them a written offer within 21 days of their 12-month anniversary.
• In case you decide not to offer casual conversion, you must inform the staff member in writing, providing the reason for not extending the offer, within 21 days after their 12-month anniversary.

One more thing to note: If your business has fewer than 15 staff members, you are not obligated to offer casual conversion. (You do not have to offer this, but this does not mean that they may not request it.)

We hope this helps clarify your responsibilities regarding casual employment. As always, it’s crucial to keep yourself informed about any potential changes in the employment landscape, and we’ll do our best to keep you updated on any further developments.

 

Are you considering redundancies or terminations?

 

Given the rising cost of living and the challenges businesses are facing with the current economic landscape, we’ve been approached with several queries regarding termination and redundancy procedures. As these matters continue to evolve rapidly, seeking clarity from experts becomes essential.

To further aid you, we’re pleased to offer you access to a complimentary Termination and Redundancies resource. Click the link to delve into comprehensive insights: HR Alert Addition – Termination and Redundancies

If you have any questions or need further assistance, feel free to reach out to us!