Employees, business owners and managers need to understand the implications of amendments to the Fair Work Act 2009 that came into effect on Saturday March 2021, changing workplace rights and obligations for casual employees. This article explains why the changes are important and how WorkLegal can help.
Main Changes
The new laws introduce:
- The Casual Employment Information Statement.
- A definition of casual employment
- A clearer pathway for casual employees to convert to full-time or part-time (permanent) employment.
- A new avenue to resolve some disputes about casual conversion through the Federal Circuit Court.
- Rights to reduce wages claims by the amount of any casual loading paid if a worker who was employed as a casual is found by a court to be a permanent employee.
Who do the Changes Affect?
The changes affect all “national system” employers in Australia of casual employees. Most employers and casual employees in Australia will be affected.
First Change – Casual Employment Information Statement
All affected employers must give every new casual employee a Casual Employment Information Statement (the CEIS) before, or as soon as possible after, they start their new job. They also must give the Statement to existing employees.
Small business employers must give the Statement to their existing casual employees as soon as possible after 27 March 2021.
Other employers (ie those that are not small business) must give the Statement to their existing casual employees as soon as possible after 27 September 2021.
Second Change – Definition of a Casual Employee
The Fair Work Act has been amended to include a new definition of a casual employee.
Under the definition, 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.
The person continues to be a casual employee until they:
- become a permanent employee through casual conversion;
- are offered and accept the offer of full-time or part-time employment; or
- stop being employed by the employer.
If the employment offer for an existing casual employee meets the new definition of casual employment they continue to be a casual employee under the Fair Work Act.
Third Change – Clearer Pathway to Convert to Permanent Employment
A new “casual conversion” entitlement has been added to the National Employment Standards.
An employer that is not a small business employer must offer to 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; or
- could continue working those hours as a permanent employee without significant changes.
Some exceptions are:
- the law does not apply to small business employers; and
- the law does not apply if an employer has ‘reasonable grounds not to make an offer to a casual employee for casual conversion.
Casual employees also have a right to request to convert to full-time or part-time (permanent) employment if:
- employed by a small business, at any time if they meet the requirements; or
- otherwise, after their employer has decided not to make an offer for casual conversion.
Fourth Change – New dispute Process about Casual Conversion
A new legal process has been introduced to resolve some disputes about casual conversion by a dispute resolution process stated in the employment contract, applicable modern award or by application to the Federal Circuit Court.
Fifth Change – Reducing Wages Claims by the Casual Loading
The new laws require that when court proceedings determine that an employee who was described as a casual is in truth not casual, the court shall reduce entitlements claimed by the amount of casual loading amounts already paid by the employer to the employee to compensate for those entitlements.
This appears to be designed to prevent “double dipping” claims by an employee who has already been paid a casual loading.
New Casual Laws Compliance Help
You are welcome to call us at 1300 223398 to arrange a time for an initial no-obligation chat about the new laws, how they affect you and what you should do.