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Fair Work Australia has introduced multiple changes to casual employment laws as part of the Closing Loopholes No. 2 Act 2024. The casual work definition, pathway to full-time or part-time employment, and employer responsibilities have all been updated. Let’s explore the casual employment changes and how you can use technology to navigate them.
Fair Work Australia’s 'Closing Loopholes’ laws are making big changes in Australian workplaces. One of these changes impacts the relationship between employers and casual workers.
What are the new casual employment laws?
Under new casual employment changes that started on the 26th of August, 2024:
- There is a new definition of casual work.
- Casuals will have a new pathway to permanent employment under the National Employment Standards.
- The new employee choice pathway will allow eligible casuals to notify their employer in writing of their intention to change to permanent employment.
- Employers can only refuse based on certain conditions.
- Employers need to provide the Casual Employment Information Statement to employees at specific intervals.
The Fair Work Commission is also considering changes to awards as a result of the casual employment changes.
Keep in mind that there is a phasing out period. If you employed casuals before the 26th of August 2024, you can continue to access the previous employer offer for casual conversion for the next six months (12 months for small businesses). The new employee choice pathway will also apply from six months (12 months for small businesses) after the 26th of August 2024.
What do the casual employment changes mean for employers?
In the past, the classification of casual employees relied on terms outlined in their employment contract.
However, the changes shift the casual employment definition to focus more on the practical reality of the actual work arrangements. For example, if there is a ‘firm advance commitment’ to ongoing work, then they may no longer be classified as a casual. This might look like the employee having a regular pattern of work and not being free to accept or reject shifts without obligation.
They also aim to create a reliable pathway for casuals to gain a more secure form of employment, if they want to pursue it. Employers also need to keep casuals aware of their rights, so any negotiations that arise throughout the employment relationship are informed.
For example, the new Casual Employment Information Statement must be provided to new casual employees when they start work and at regular intervals. It explains the criteria for being classified as a casual employee, the concept of ‘no firm advance commitment’ which helps to define casual employment relationships, how to become a permanent employee, entitlements to a casual conversion, and how to deal with disagreements.
What if an employer can’t offer permanent employment to an eligible casual?
Eligible casual employees can notify their employers in writing to change to permanent employment if they have been employed for at least six months (or 12 months for small businesses) and believe that they no longer meet the definition of a casual employee.
If an employer accepts the change, they must respond within 21 days of receiving the notification. However, an employer can choose not to offer a permanent position if there are reasonable grounds.
These can depend on the circumstances. However, they could include that there would be significant changes to operations and the way that work within the business is organised.
If an employee can’t resolve a casual conversion dispute with their employer, they can seek support from the Fair Work Commission.
How can employers adapt to the new rules for casual employees?
There are a number of steps that we expect employers will start taking straight away. These include:
- Reviewing casual employment agreements and working patterns to check if they align with the new definition.
- Providing the Casual Employment Information Statement (CEIS) to all casual employees before or as soon as possible after commencing employment.
- Training managers so they understand the new definition, its implications, and how to handle requests to switch to a permanent position.
If you have a large workforce, are based across multiple sites, or have a cyclical workforce and are worried about meeting your requirements for casual employees, remember that you can lean on technology.
For example, a workplace management platform, like foundU can be used to automate your required communications with casual employees and trigger reminders for casual conversion conversations.
With foundU’s workforce management software, you can:
- Have one source of truth for your employee records so you can easily distinguish which employees are casual and log all communications with each of them via their employee profiles.
- Send the new Casual Employment Information Statement (CEIS) to your casual employees at the required intervals via a timed email automation.
- Set up milestone notifications so you’re prepared to receive requests for permanent employment from casual staff and plan for your discussions.
- Review the data stored in your casual employee profiles, so that you can easily recall their start and end dates, position history, and working patterns.
- Use communication and roster settings that give casual employees the option to accept or decline shifts.
- Review and automate payment calculations for your casual staff using the latest modern awards, so that you’re confident that you’re using the right rates when you manage payroll.
A new pathway to permanent employment
There is no doubt these new laws will impact many employers. In August 2023, there were 2.7 million casual employees in Australia. In other words, 22% of all employees were casual. According to the industrial relations minister, Tony Burke, 850,000 of these casual workers have regular work arrangements.
The aim of the changes is to give casuals a clear pathway to permanent employment and the benefits of job security if they want it. So, if you haven't already, it’s time to review your casual employment policies, agreements, and practices to make sure you are compliant.
