Deadline for Casual Conversion is Fast Approaching


Deadline for Casual Conversion is Fast Approaching

Earlier this year, reforms were made to the Fair Work Act 2009 (‘the Act’) to offer greater certainty about the rights and obligations that govern casual employment.  For a full overview of these amendments, please see the article written by our employment team in April 2021.

Among other changes, these reforms introduced a new NES (National Employment Standards) entitlement to convert from casual to permanent full-time or part-time employment.  Employers of casual employees who were employed before 27 March 2021 must make a written offer to convert them to permanent employees before 27 September 2021.

Obligation to offer casual conversion

Casual employees who have worked for their employer for 12 months need to be offered the option to convert to permanent employment by their employer unless there are reasonable grounds not to do so. Employers need to make a written within 21 days after the employees 12 month-anniversary if the employee:

  • Has been employed by the employer for 12 months;
  • Has worked a regular pattern of hours on an ongoing basis for at least 6 months; and
  • Could continue working these hours as a full-time or part-time employee without significant changes.

If employees meet the above requirements, employers must either:

  1. Make a written offer to convert the employee to permanent employment; or
  2. Write to the employee explaining why an offer won’t be made.
    • Employers with existing employees who meet these requirements and were employed before 27 March 2021 must take one of the above courses of action before 27 September 2021.
    • This obligation does not apply to small business employers with less than 15 employees.

Employees rights and obligations

Employees must respond to any offer to convert within 21 days of receiving it. If they do not respond, employers may assume that the offer has been declined.

Eligible casual employees, including those employed by small business employers, can make a request to convert to permanent employment from 21 days after their 12 month employment anniversary. Employees may make a request to convert once every 6 months.

Reasonable grounds to refuse conversion

Employers may decline to make an offer for conversion if there are reasonable grounds to do so. These grounds must be based on facts that are known or reasonably foreseeable. Reasonable grounds can include (but are not limited to) situations where, in the next 12 months:

  • The employee’s position won’t exist;
  • The employee’s hours of work will significantly reduce;
  • The employee’s availability for days or times of work will significantly change.

Next steps for employers

To ensure compliance with these obligations, employers of casual staff should:

  • Assess casual employees employed before 27 March 2021 to determine whether they need to be made a written offer, or to provide notices that offers will not be made, by 27 September 2021;
  • Note when each casual employee’s 12 month anniversary will be occurring to ensure future offers are notices are made within the prescribed time limit.

For assistance in navigating your rights and obligations under these reforms or to discus further, please contact our employment team.

Article prepared by: Shannon Walsh, Graduate

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