Understanding Casual Employee Changes in Australia

Casual employment in Australia has undergone significant changes, particularly with the definition and entitlements of casual employees. Here’s a summary of the key points you need to know:

Definition of a Casual Employee

A person is considered a casual employee if:

• The employment relationship has no firm advance commitment to ongoing work.

• They are entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract

  
  

Key Changes Effective from 26 August 2024

The definition of a casual employee was updated on 26 August 2024. This change impacts how casual employment is assessed, focusing on the real substance, practical reality, and true nature of the employment relationship

Assessing Firm Advance Commitment

To determine if there is a firm advance commitment to ongoing work, several factors are considered:

• Whether the employer can offer or not offer work to the employee.

• Whether the employee can accept or reject work.

• The likelihood of future work being available.

• The presence of full-time or part-time employees performing similar work.

• The employee's regular pattern of work, even if it changes over time

  
  

Entitlements for Casual Employees

Casual employees are entitled to:

• A casual loading or specific casual pay rate.

• The right to convert to full-time or part-time employment under certain conditions.

• Protection from unfair dismissal if they meet the eligibility criteria

  
  

Conversion to Full-Time or Part-Time Employment

Casual employees can request to convert to full-time or part-time employment if they have been employed for 12 months and have worked a regular pattern of hours on an ongoing basis for at least the last six months

Addressing Sham Casual Employment

The Fair Work Ombudsman can assist employees who believe they have been incorrectly classified as casuals, including those in sham casual employment arrangements

For more detailed information, you can visit the Fair Work Ombudsman’s page on casual employees.

Note: This information is general and does not constitute legal advice. Seek independent advice before taking any action based on this article.