Currently, casual employees who have worked for their employer for 12 months with a regular pattern of hours must be offered the option to convert to full-time or part-time (permanent) employment. Small business employers only need to do this if the employee requests it, provided certain eligibility requirements are met.
However, starting from 26th August 2024, new rules will be introduced to facilitate the conversion of casual employees to permanent employment. This will replace the current casual conversion rules.
New Pathway for Casual Conversion
Employees can notify their employer of their intention to convert to permanent employment if they:
– Have been employed for at least 6 months (or 12 months if working for a small business employer).
– Believe they no longer meet the new definition of a casual employee.
Employees cannot notify their employer of their intention to convert to permanent employment if they:
– Are currently engaged in an ongoing dispute with their employer about casual conversion.
– Have had their employer refuse a previous notification within the last 6 months.
– Have resolved a dispute with their employer about casual conversion within the last 6 months.
Casual Employment Information Statement (CEIS)
A new CEIS will be available from August 2024. The CEIS must be provided to:
– New casual employees before, or as soon as possible after, the start of their employment.
– All casual employees employed by non-small businesses as soon as possible after:
– 6 months of employment.
– 12 months of employment and every subsequent period of 12 months.
– All casual employees of small businesses as soon as possible after 12 months of employment.
Example: Casual Conversion
Mariana works as a casual cleaner at a large contract cleaning company. She has been working for her employer for 9 months. Mariana’s employer:
– Rosters her to work every week from 8 am to 1 pm, Monday to Friday.
– Has consistently offered her work due to the busy nature of the cleaning company.
– Believes it is reasonably likely that Mariana will have ongoing work available in the future.
– Has part-time employees working in the same role.
Mariana believes she no longer meets the definition of a casual employee. She informs her manager, Victor, of her intention to change to part-time employment and provides the notification in writing. Victor organizes a meeting where Mariana explains why she believes she can change to part-time work. Victor agrees, and they discuss Mariana’s desired working hours and when the change will take effect. Victor responds in writing within 21 days, agreeing to the change to part-time employment and including details of her new working hours and the effective date.
Action Required
Discuss the new process with your business/HR team to ensure compliance and smooth implementation of the changes.
