Casual Conversion Rules are changing
The process for employees to convert from casual employment to part or full time employment is changing. What avenue applies depends on your business and when the casual employee was employed:
| Old Legislation (Offers & Requests for Conversion) | New Legislation – Employee Choice Pathway | |
|---|---|---|
| Employment Commenced Prior to 26 August 2024 | Non-Small Business: Applies until 26 February 2025. Small Business: Applies until 26 August 2025. | Non-Small Business: Applies from 26 February 2025. Small Business: Applies from 26 August 2025. |
| Employee’s Employment Commenced on or After 26 August 2024 | Non-Small Business: Does not apply. Small Business: Does not apply. | Non-Small Business: Applies after being employed for 6 months or more. Small Business: Applies after being employed for 12 months or more. |
Unlike the previous system, the ‘Employee Choice Pathway’ (“ECP”) does not require the employer to offer the conversion. Instead, employees have the right to request conversion any time after 6 or 12 months (refer to the above table) if they believe they no longer meet the definition of a casual employee.
Employers are obliged to consult with the employee and accept the request, unless the employee was not eligible to make the request, or there are proper grounds for refusal (in accordance with the Act). A written response to the request must be provided within 21 days. If the employer rejects the request, the written response needs to include detailed reasons for that decision.
For employees that commenced before 26 August 2024, the traditional pathways for casual conversion have continued to apply in accordance with the above table. After those dates pass, the transition period will end and the only avenue for casual conversion will be the employee choice pathway.
Regardless of these changes, employers must continue to provide employees with a Casual Employment Information Statement before commencement (or as soon as possible after commencement) and then:
- for small businesses, after 12 months of employment, or
- for non-small businesses, after 6 months of employment and then after 12 months and every 12 months thereafter.
If you have any questions or concerns about these changes, please do not hesitate to reach out to us to speak to one of our specialist employment lawyers.
Disclaimer: The information contained this article is general and intended as a guide only. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this update, Aitken Legal does not accept liability for any errors it may contain. Liability limited by a scheme approved under professional standards legislation.