Casual Employment

During August 2024 there are 2 major changes to the Fair Work Legislation. The first of the changes is the new definition of what a casual employee is.

Effective of the 26th of August 2024 an employee is a casual employee if there is no firm advanced commitment to continuing and indefinite work, taking into account a number of factors, including the real substance, practical reality and true nature of the employment relationship and they are entitled to receive a casual loading or specific Casual pay rate. 

So what is no firm advanced commitment?

The factors that the Fair Work Commission will take into account include;

• The real substance, practical reality and true nature of the employment relationship
•  the employer can offer or not offer work to the employee
•  the employee can reject or accept work
•  it is reasonably likely that there will be future work available to the employers business based on the nature of the business
•  there are full-time or part-time employees performing the same kind of work in the employees business as the work that the employee normally performs
•  the employee has a regular pattern of work.

Casual Conversion

The Fair Work Commission has  also changed the casual conversion process. This process has now moved from an employer obligation to an employee one with a much shorter time frame unless you are a small business employer.  If you have over 15 employees then after six months of employment the employee can apply for casual conversion if they no longer meet the definition of a casual employee. If you have under 15 employees the timeframe for an employee to apply for conversion is 12 months.  The employer has the opportunity to reject this application on specific grounds. 

To ensure that casual employees know their entitlements employers now have to supply all casual employees with the Casual Fair Work information Statement (liked here) on commencement, at six months and every 12 months after this.

What do employers need to do?

• Ensure that your casual employees currently and continue to meet the new definition
• Provide employees with the Casual Fair Work Information statement at the correct intervals - utilise tech reminders to ensure you are meeting this obligation
• Respond within 21 days to requests for casual conversion.

For more information check out the Fair Work or reach out to us via our contact form!