Casual Employment Changes – Time to Act

In March 2021, the Federal Parliament passed legislation that made changes to Casual Employment in Australia.

These changes amended the Fair Work Act and required employers to proactively offer casual conversion to eligible employees. This covers all casual employees and not just those covered by Modern Awards.

Employers were allowed time to make assessments about whether they needed to offer casual conversion. This “transition period” ends on 27 September 2021.

Employers of casual’s need to act to now to implement the Casual Employment Changes – after 27 September 2021, it will be too late

Tony Perkins – Director, People Smartz Pty Ltd

What do Businesses need to do?

If you are a National System Employer, you are required to take some action before 27 September 2021. The action needed to be taken depends on the size of the business, with different requirements for Small and Large Businesses.

Casual Employment Changes – Small Business requirements

Small businesses (those with less than 15 employees) do not need to make an offer of casual conversion.

This does not mean that a employee can not make a request casual conversion. An eligible casual employee working for a small business can request to convert to permanent employment at any time on, or after, their 12-month anniversary.

A small business employer must give their existing casual employees a copy of the Casual Employment Information Statement as soon as possible after 27 March 2021

Casual Employment Changes – Large business Requirements

Large businesses (those with 15 or more employees), need to make a written offer to convert their casual employees to permanent employment within 21 days of their 12-month anniversary if:

  • the employee has been employed by the employer for 12 months
  • the employee has had a regular and ongoing pattern of work for at least the last six months; and
  • the employee could continue working those hours as a full-time or part-time employee without significant changes.

By 27 September 2021, large business employers are required to assess whether any of their existing casual employees are eligible to convert to permanent employment. They then need, within 21 days of making the assessment, do one of the following:

  • Make a written offer to the casual employee to convert to permanent employee; or
  • Write to their employee explaining why they wont be making an offer of conversion

Need Assistance?

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About the Author

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