Industrial Relations Reform-Changes to Casual Employment
Photo by Fair Work Ombudsman from www.fairwork.gov.au
On Friday 26 March 2021, the Fair Work Act 2009 (FW Act) was amended to change workplace rights and obligations for casual employees. The changes came into effect 27 March 2021.
The amendments to the Act introduced:
A casual employment information statement
A definition of casual employment
A casual employee’s right to convert to full-time or part-time (permanent) employment and
Protections for employers against ‘double-dipping’
Casual Employment Information Statement
Employers have to give every new casual employee a Casual Employment Information Statement (the CEIS) before, or as soon as possible after, they start their new job.
Small business employers must give their existing casual employees a copy of the CEIS as soon as possible after 27 March 2021. Other employers must give their existing casual employees a copy of the CEIS as soon as possible after 27 September 2021.
The New Definition of Casual Employment
Under the amended Act a person is a casual employee if they accept a job offer from an employer knowing that there is no firm advance commitment to ongoing work with an agreed pattern of work.
Once employed as a casual, an employee will continue to be a casual employee until they either:
become a permanent employee through casual conversion, or
are offered and accept the offer of full-time or part-time employment, or
stop being employed by the employer.
Conversion to Part-time or Full-time Permanent Employment
The right to convert to part-time or full-time employment for eligible employees in now a National Employment Standard. Employers (other than a small business employers) must offer their casual employee to convert to full-time or part-time (permanent) when 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.
These offers must be made in writing within 21 days of the employee becoming eligible however employers do not have to make an offer if there are reasonable business grounds not to do so. In this circumstance, employers must inform the casual employee why they are not making the conversion offer.
Casual employees also have a right to request to convert to full-time or part-time employment:
for casual employees working for a small business – at any time if they meet the requirements
for other casual employees – after their employer has decided not to make an offer for casual conversion.
Protections for Employers Against Double Dipping
The amendments protect businesses from casual ‘double-dipping’ claims. When making orders the court MUST reduce any amount payable to the employee for entitlements by an amount equal to the loading amount already paid by the employer to compensate for those entitlements.
For Employers
Now is the time to:
Review your casual employment contracts. Contracts must be clear from the outset that they are a casual employee and set out the definition of casual employee as per new statutory definition.
Implement systems to ensure you meet your casual conversion obligations – offers and requests.
Ensure you are issuing the most recently updated Fair Work Information Statement.
Issue the Casual Employment Information statement to relevant employees.
Employers can rest easy that:
there is certainty that even if a casual employees pattern of work changes throughout their first 12 months, their employment will still be defined as casual.
They are protected from double-dipping should a court determine that an employee is not a casual employee.
You can download the updated Fair Work Information Statement here and the new Casual Employment Information Sheet here.
At Infinity HR, we work with small business to ensure compliance with relevant legislation. If you need help reviewing your casual contract to ensure you are compliant with the new legislation or need help implementing casual conversion systems contact Iolanda at 0400 489 743 or email info@infinityhr.com.au today.