Fair Work Act – Closing Loopholes #2. & Casual Employees Changes

The FWA Closing Loopholes #2 Act makes major changes to casual employment. 

Snapshot of Changes

The Casual employment changes include:

• Providing a new definition of a casual employee based on the totality of the employment relationship.

• A new process for casual employee conversion to a permanent employee that is now triggered by the employee.

• Ensuring that a casual employment relationship cannot morph into permanent employees until the formal conversion process occurs.

Operative Date for Changes: 26th August 2024

Deep Dive Of Changes

New Definition of a Casual Employee

An employee will be deemed to be a casual employee if:

a) Their employment is characterized by a lack of a firm advance commitment to continuing and indefinite work.

b) The employee is entitled to a casual loading under the Award or Enterprise Agreement.

c) The employee has not requested to be converted to full-time or part-time.

a) Firm Advance Commitment factors include:

• The employer's operational requirements prevent it from being able to offer or not offer work to the employee – or the employee has restrictions in being able to elect to accept or reject work.

• Due to the nature of the employer enterprise, it is reasonably likely there is continuing work.

• There are full-time or part-time employees performing the same type of work. b) Entitled to loading under an award or Enterprise Agreement  The employees are entitled to be paid a casual loading under the Award. c) Employees converting into Casual Employees Casual employees cannot morph into permanent employees without one of the two following specific events.  1.An offer and acceptance of a changed role by the employer or 2.The employee no longer believes they meet the requirements of a casual employee and are successful in their application to convert to a permanent employee. Timeframes for Conversion A casual employee is able to request conversion to a permanent employee after 6 months of service  (12 months for a small business). Grounds for an employer not accepting a request for conversation. An employer is able to decline a request for conversion , when there are “fair and reasonable operational grounds”. Grounds include: Note. An employee has recourse to the Fair Work Commission where an employer has refused a request to change into a permanent employee. 

• Substantial changes are required in the way in which work is organized

• Significant impacts on the operations of the employers