Changes to Casual Employment
The Federal Government’s Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 has introduced key changes to casual employment in Australia.
These changes include the definition of casual employment, statutory rights to request conversion to permanent employment and the requirement to provide new and existing staff with a Casual Employment Information Statement.
What does it mean for you?
Q. What is the Casual Employment Information Statement (CEIS)?
A. The Casual Employment Information Statement (“CEIS”) is a two-page document. It outlines the meaning of casual employment, the rights to become a permanent employee and the steps that may be taken to resolve disagreements.
The CEIS must be provided to every new casual employee before they start a new job, or as soon as possible. Existing casual employees (those employed after 27 March 2021) must be given the CEIS by 27 September 2021.
The CEIS can be provided in person, via mail or by attaching the CEIS (or a link) to an email.
ACTION:
Download a copy below
Add it to your employee packs
Provide it to your existing casual employees by the 27th of September 2021
Q. When should I offer full-time or part-time employment to a casual employee?
A. Full-time and part-time employees must be offered casual conversion if they have:
Worked for the business for a period of 12 months (“12- month period”);
Worked a regular pattern of hours for at least six of those months on an ongoing basis; and
Could continue working those hours as a permanent employee without significant changes.
The offer to convert to permanent employment must be in writing and made within 21 days from the end of the 12-month period. The employee has a further 21 days to accept.
There are certain exceptions to the above for small business employers and if an employer has reasonable grounds not to make the offer. Reasonable grounds include that the job will cease to exist within the next 12 months, or the hours are likely to be significantly reduced and must be explained to the employee in writing.
Q. Can an employee receive a causal loading and later argue they are a permanent staff member and entitled to benefits such as annual leave and personal leave? This is also known as ‘double dipping.’
A. If there is a dispute the court will apply the new definition to determine whether the employee is a casual or permanent employee. Where an employee has been miscategorised, a court can offset any amount paid as a casual loading against entitlements and benefits a permanent employee receives, such as annual leave, notice or redundancy pay. This effectively reduces the likelihood of an employee receiving both casual loading and leave entitlements.