Are you a business owner who employs casual workers? If so, your casual employees may be entitled to permanent work after 12 months of service with your business. This article will take you through some key considerations when determining if casual workers can transition to a permanent work model.
Casual Workers
Workers are casual if they accept no commitment to ongoing work. In other words, casual employees should not expect a regular pattern of work. Instead, they will typically work different shifts each week and can swap or refuse shifts as needed.
When determining whether the offer of employment does not commit to regular work, you should consider whether the employee:
- can elect to accept or reject work;
- will work as required according to the needs of the employer;
- is described as casual employment; and
- will receive a casual loading.
Casual Employees vs Permanent Employees
The entitlements of casual employees are different to that of permanent employees. For example, a casual employee does not receive all entitlements under the National Employment Standards (NES), such as sick or annual leave.
Nevertheless, casual employees still have some entitlements under the NES. The NES provides that casual employees are entitled to:
- access a pathway to become a permanent employee (after 12 months of service);
- two days unpaid carer’s leave and two days unpaid compassionate leave;
- five days unpaid family and domestic violence leave (in 12 months); and
- unpaid community service leave.
Further, where an employee has been working with you for more than 12 months on a regular and systematic basis, they are entitled to request flexible working arrangements and take unpaid parental leave.
Continue reading this article below the formOffering Casual Conversion
Where a casual worker meets specific criteria, you will need to offer to convert their employment to permanent employment. For example, where a casual employee has worked full-time hours, they should be offered full-time employment. Alternatively, if they have worked less than full-time hours, this conversion offer should be for part-time employment.
This offer must be made within 21 days of the employee’s 12-month anniversary. The criteria required for this include that the employee must:
- have been employed by you for 12 months;
- have had a regular pattern of work hours for at least six months; and
- could maintain this regular pattern of hours as a permanent employee (either full-time or part-time) without significant changes.
Failure to Offer Casual Conversion
If you do not offer casual conversion to your employees, you must write to them explaining why you are not making the offer. Valid reasons include if the employee does not meet the criteria or if there are reasonable grounds for you not to make this offer. Reasonable grounds might include if:
- you consider the position will not exist in the next 12 months;
- the employee’s work hours are expected to reduce; or
- the employee’s work schedule will significantly change in a way that cannot be accommodated.
On the flip side, employees can request casual conversion within 21 days of their 12-month anniversary. If you are a small business, an employee can make this request from their 12-month anniversary.
Employee Rejecting Casual Conversion
Employees must respond to your offer for casual conversion within 21 days of receiving the request. This response should be in writing. However, it is essential to note that if an employee rejects an offer to convert to permanent employment, they cannot request conversion for at least six months.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
Key Takeaways
Understanding the rights and entitlements of your casual employees, including their right to casual conversion, is essential. When determining whether a casual employee is entitled to conversion to permanent work, you should consider whether they:
- have been employed by you for 12 months;
- have had a regular pattern of work hours for at least six months; and
- could maintain this regular pattern of hours as a permanent employee (either full-time or part-time) without significant changes.
If you need assistance understanding whether your casual employee is entitled to permanent work, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Workers are casual if they accept no commitment to ongoing work. Casual employees also should not expect a regular pattern of work. Instead, they typically work different weekly shifts and can swap or refuse shifts as needed.
The entitlements of casual employees differ from that of permanent employees. Informal workers do not receive all entitlements under the National Employment Standards (NES), such as sick or annual leave. However, they still have access to some entitlements, such as a pathway to become a permanent employee (after 12 months of service), two days unpaid carer’s leave, and two days unpaid compassionate leave.
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