What are the changes?

As of 27 September, barring a few circumstances, if casual staff have been employed for more than 12 months, employers are required to offer them the opportunity to convert to permanent part-time or full-time. Employees also have the right to request a conversion, which the employer is required to respond to.

What are employers required to do?

An employer has to offer their casual employee the option of converting to a permanent full-time or part-time basis if the employee:

• has worked for their employer for 12 months
• has worked a regular pattern of hours for at least the last 6 of those months on an ongoing basis 
• could continue working those hours as a permanent employee without significant changes.

This needs to be done in writing, within 21 days following the employee's 12 month anniversary of employment.

The offer needs to be for the employee to convert to:

• full-time employment - if the employee’s hours worked for at least the last 6 months have been the same as full-time hours, or
• part-time employment - if the employee’s hours worked for at least the last 6 months have been less than full-time hours.

To determine whether an employee’s hours are full-time or part-time check their award or agreement, the hours of other full or part-time employees in similar positions, or go to the Fair Work website.

Are there any instances where business do not need to make the offer?

Yes - there are only a few reasons a business does not need to make an offer:

• the business is classified as a small employer (see the definition below)
• the employee hasn’t worked a regular pattern of hours:
• on an ongoing basis for at least the last 6 months
• which they could continue working as a full-time or part-time employee without significant changes
• the business has reasonable grounds for not making an offer:
• the employee’s position won’t exist
• the employee’s hours of work will significantly reduce
• the employee’s days or times of work will significantly change, and that can’t be accommodated within the employee’s available days or times for work.

If an employer decides not to offer a casual to permanent conversion, the employer needs to write to the employee within 21 days following the employee's 12 month anniversary, telling them:

• They aren't making an offer of casual conversation
• the reasons for not making the offer

Note - an employer can’t reduce or change an employee’s hours of work, or terminate their employment, to avoid having to offer or accept a request for casual conversion.

Employee response

To accept the offer to convert to permanency, employees need reply in writing within 21 days from getting the offer. If they don’t respond, their employer can assume that they’ve declined the offer.

Employees can request a change from casual to permanent

Existing casuals working for an employer (other than a small business) can make a request to convert from 28 September 2021, if they are eligible.

The request must be made in writing for permanent full-time or part-time employment with the same details as above (at least six months working full or part-time, with a regular pattern of hours). 

If the employer rejects a request because, for instance, the employee has only had a four month pattern of hours, but in two months’ time there is a six month pattern, the employee can make the request again.

Employers need to respond in writing to an employee’s request within 21 days and tell the employee if they have or haven’t accepted the request. If the employer refuses the request, they are required to tell their employee their reasons why in their written response.

Employers can’t refuse a request unless they have discussed the request with the employee and have reasonable grounds to refuse the request.

What is a small business employer?

A small business employer has 14 or less employees at any one time - including associated entities. Casual employees are not included unless engaged on a regular and systematic basis.

If you are unsure as to whether you need to transition casual employees to a permanent status or not, contact your Aspen Corporate Advisor today for support and assistance.