Casual Conversion - from casual to permanent employment

Casual Conversion - What does it mean for me?

Recent changes to the Fair Work Act 2009 ("the Act") introduced new rights for casual employees, including the right to request a casual conversion to permanent employment.  This means that casual employees who have been working for their employer on a regular and systematic basis may be eligible to convert to permanent employment.

What is casual employment?

Casual employment is a type of employment where an employee works on an irregular or as-needed basis, without any guaranteed hours of work. Casual employees are often hired to work for short periods of time, such as a few days a week, and typically do not receive the same benefits and entitlements as their permanent counterparts (i.e. annual leave and paid personal leave).  However, employers often will hire employees on a casual basis, but roster them to work regular and systematic hours in the same manner they would roster their permanent part-time and full-time employees.  This may be for a variety of reasons, including staffing flexibility and financial management.

However, under recent changes to the Act, casual employees are entitled to request a casual conversion if they have been working for their employer for 12 months, and for at least the last six months of their employment, have been engaged on a regular and systematic basis.  There must also be a reasonable expectation of continuing employment with their employer on the same terms as their current arrangement. This means that casual employees who work regular hours each week, or who have been consistently employed for an extended period of time, may be eligible to request a casual conversion.

Employer's obligations

Under the Act, an employer must offer an eligible employee casual conversion within 21 days of said employee’s 12-month employment anniversary.  There are some exceptions to this requirement, including where the employer is a small business, or where there are reasonable business grounds (discussed below). 

Employers should also be aware that, under the Act, they are also required to notify ineligible casual employees (or eligible employees, if there are reasonable business grounds) that they will not be making an offer of casual conversion.  This must also be made within 21 days of the date of the employee’s 12-month employment anniversary.

When can an employee request casual conversion?

An employee may also request casual conversion at any time after their 12-month employment anniversary – including if their employer is a small business, or if they have previously turned down an offer of casual conversion.  If an employee wishes to request a casual conversion, they must do so in writing to their employer. The request should include details such as the employee's length of service, the hours and patterns of work they have been performing, and any reasons why they believe they are eligible for a casual conversion.

Once a request has been received, the employer must respond within 21 days. If the employer agrees to the request, they must provide the employee with a written notice confirming the conversion to permanent employment, including details such as the employee's new employment status, entitlements and benefits, and any changes to their hours or patterns of work.

If the employer does not agree to the request, they must provide the employee with a written notice setting out the reasons why the request has been refused. This notice must include details such as the reasons why the employee is not eligible for a casual conversion, and any other relevant information, such as reasonable business grounds.  Reasonable business grounds may include circumstances where:

• The employee’s position will cease in the next 12 months;
• The employee’s hours of work will be reduced significantly; and
• There will be a significant change to the employee’s pattern of work (including the days or hours of work).

It is important for employers to comply with the casual conversion provisions under the Act, as failure to do so may result in penalties and/or legal action. Employers must ensure that they provide employees with a fair and transparent process for requesting and determining casual conversion, and that they respond to requests in a timely and appropriate manner.  Employers are also required to provide new casual employees with the Fair Work Commission’s Casual Employment Information Statement (“the Statement”) before, or as soon as, they commence employment.  

If you require advice on your rights or obligations under the casual conversion provisions set out in the Act, or your employment matters generally, contact one of our local, expert employment lawyers today.