EWD CONSULTING BULLETIN April 2021

Changes to Casual Employment

This Bulletin outlines the key recent changes relating to casual employment.

On 27 March 2021, the Government passed an amended version of the IR Omnibus Bill to change some sections of the Fair Work Act 2009 relating to casual employees.

Definition of Casual Employee

The IR Omnibus Bill introduces a statutory definition of a casual employee to be included in the Fair Work Act.

The definition provides that a casual employee is a person:

• who is offered work with no firm advance commitment to continuing and indefinite work according to an agreed pattern of work,
• who accepts the offer of work on that basis,
• who is employed as a result of that acceptance.

Changes to Casual Conversion

A right to casual conversion has been inserted into the National Employment Standards.

As a result of the changes, an Employer must offer to convert a casual employee to permanent full-time or part-time, whichever is appropriate, if they have been employed for 12 months and during the last 6 months, have been employed on a regular and systematic basis.  These provisions are similar to those contained in modern awards.

Small businesses who employ less than 15 employees are exempt from this change.

New Casual Employment Information Statement
The Fair Work Ombudsman has created a new Casual Employment Information Statement that employers will need to provide to each casual employee upon their engagement.

The new Fair work Ombudsman Casual Employment Information Statement is attached.

Employers offering casual conversion

Employers (except small business employers) need to make a written offer to convert their casual employee to permanent employment within 21 days of the employee’s 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 the last 6 months
• could continue working these hours as a full-time or part-time employee without significant changes.

The offer needs to be for the employee to convert to:

• full-time employment, if the employee’s hours worked for at least the last 6 months have been the same as full-time hours, or
• part-time employment (consistent with the employee’s regular pattern of hours worked for at least the last 6 months), if the employee’s hours worked for at least the last 6 months have been less than full-time hours.

Find out whether an employee’s hours are full-time or part-time by checking:

• the relevant award or agreement (if the employee is covered by one), or
• the hours worked by other full-time or part-time employees who work in the same or a similar position.

Existing casual employees

By 27 September 2021, employers (other than small business employers) need to assess whether any of their existing casual employees employed before 27 March 2021, are eligible to be offered to convert to permanent employment.

Within 21 days of completing the assessment, the employer needs to:

• make a written offer to convert their casual employee to permanent employment, or
• write to their employee explaining why they won’t be making an offer (this needs to be done no later than 27 September 2021).

Employees responding to an offer

To accept an offer to convert, employees need to respond to their employer in writing within 21 days after getting the offer. If they don’t respond, their employer can assume that they’ve declined the offer.

Action suggested for Employers:

Employers should

• Review Contracts for existing and potential new casual employees,
• Review the terms and conditions of employment of casual employees,
• Determine who may be eligible for casual conversion.

For more information on Changes to Casual Employment, please contact Ted Davis, Director, EWD Consulting on M: 0401155745.