| Do you employ casuals? There are several changes to casual employment laws, starting on 26 August 2024. These include: how casual work is defined the pathway to full-time or part-time employment employee and employer responsibilities. Defining Casual Employment A new definition of ‘casual employee’ will be introduced to the Fair Work Act. Under the new definition, a person is a casual employee if, when they start employment, there’s no firm advance commitment to ongoing work, and they receive casual loading or a specific casual pay rate. To assess if there’s a “firm advance commitment” in an employment relationship, consider: 1. The true nature and practical reality of the employment relationship 2. Key factors such as: Can the employer choose to offer or not offer work? Can the employee accept or reject work? Is there likely to be future work available that the employee usually does?Are there full-time or part-time employees performing the same kind of work in the business?Does the employee have a regular work pattern, even if it changes over time due to things like illness or leave? Not all factors must be met, and no single factor is decisive. For example, a regular work pattern alone doesn’t mean there’s a firm commitment to ongoing work. When assessing a firm advance commitment, consider the employment contract and any mutual understanding or expectation beyond it, reflected in the actions of both parties. Casual employees remain casual until their status changes through a conversion process, a Fair Work Commission order, or by accepting and starting an alternative employment offer. Changes to Casual Conversion Rules Currently, under the Fair Work Act, casual employees who have worked for their employer for 12 months or more, with regular shifts for at least the last 6 months, must be offered the option to convert their employment to permanent. Eligible casual employees can also request conversion under the same conditions. However, the recent Closing Loopholes legislation will remove the existing casual conversion rules, leaving only the ‘employee choice pathway’. This means that employers will no longer be required to offer conversion to permanent employment. Instead, casual employees who have worked at least 6 months (or 12 months in small businesses) can give written notice to their employer to request permanent employment if they believe their situation no longer meets the Fair Work Act’s definition of a “casual employee” as outlined above. Before responding to a notice, the employer must consult with the employee about the potential changes including employment status and hours. The employer must then provide a written response within 21 days, either accepting or rejecting the request, with reasons if not accepted. These changes take effect from 26 August 2024, but there will be a transitional period where the current casual conversion rules will still apply to existing casual employees. Casual Employment Information Statement – New Rules for Employers The Casual Employment Information Statement (CEIS) provides information about employment conditions and must be given to all casual employees. Currently, employers must provide the CEIS to all new casual employees before or as soon as possible after they start employment. From 26 August, it must now also be given: After 12 months for small business employers After 6 and 12 months, and then annually, for other employers An updated version of the Casual Employment Information Statement will be published on 26 August 2024. Actions – What to do next Review Workforce: Assess your casual employees’ status based on the new definition and practical realities Update Contracts: Revise casual employment contracts to align with the new laws, removing outdated casual conversion clauses Revise Conversion Processes: Modify your casual conversion processes to comply with the new employee-driven pathway Provide the Updated CEIS: Download the updated Casual Employment Information Statement on August 26, and provide it to new casual employees as required—upon commencing, after 6 and 12 months, then annually (or just at 12 months for small businesses) Prepare for the Transition: Be aware of the transitional period where existing casual conversion rules still apply and adjust accordingly. Further information all these changes can be found here Fair Work Ombudsman |