New Definition of ‘Casual Employee’ in the Fair Work Act
A new Fair Work Act definition of ‘casual employee’ was introduced in August 2024. An employee is considered casual if there is not a firm advance commitment to continuing and indefinite work, and if they are entitled to receive a casual loading or specific casual pay rate. Casual employees will retain their status until it changes through a conversion process, Fair Work Commission order, or by accepting a new employment offer.
 
Determining Casual Status
A firm advance commitment to work must be assessed based on the real substance, practical reality, and true nature of the employment relationship. Factors include whether the employer can offer or not offer work, the employee’s ability to accept or reject work, the likelihood of future work, and the presence of regular work patterns or similar roles filled by full-time or part-time employees.
 
Casual Employment Information Statement (CEIS)
The CEIS, detailing employment conditions, must be provided to all new casual employees before or as soon as possible after they start work. Non-small businesses must also give the CEIS to casual employees at six months, 12 months, and every subsequent 12-month period, while small businesses must provide it after 12 months of employment.
 
Casual Conversion Eligibility
Casual employees can now request to convert to permanent employment if they have been employed by the same employer for at least 12 months and have worked a regular pattern of hours for the last six months. Non-small business employees can request conversion 21 days after their 12-month anniversary, while small business employees can request at any time after their 12-month anniversary.
 
Ineligibility and Conversion Requests
Employees are ineligible to request casual conversion if they have refused a previous conversion offer in the last six months, or if their employer has provided written notice of no conversion due to reasonable grounds. Eligible casual employees can make a request every six months, even if previously denied due to an irregular work pattern that has since changed.
 
These changes enhance job security and provide clearer pathways to permanent employment for casual employees. For detailed guidance on implementing these changes, contact The BelRose Group.