Casual conversion describes the process of converting an existing casual employee to a permanent full-time or part-time employment relationship.
Casual conversion
The term casual conversion is used to describe the process of converting an existing casual employee to a permanent full-time or part-time employment relationship.
This change is starting from:
- 26 August 2024 (effective), for businesses with 15 or more employees
- 26 August 2025, for businesses with less than 15 employees.
The change to casual employment
The current process has been ‘employer driven’ where an employer offers their casual employee(s) an arrangement to convert to a permanent full-time or part-time employee. Moving forward, casual conversion will become an ‘Employee Choice’ process. This means that employees who wish to convert to a permanent full-time or part-time position will need to submit a request with their employer.
Who can initiate this conversion?
Under the National Employment Standards (NES), any casual employee has the right to notify their employer of their willingness to be converted into a full-time or part-time employee.
When can an employee notify their employer of converting from a casual?
Employees can do so if they: have been employed for at least 6 months (or 12 months if it is a small business) believe they no longer meet the requirements of the new casual employee definition.
When can a casual employee not make a request?
If in the last 6 months: they’ve refused an offer from the employer to convert to a permanent employee the employer has given a written response, stating reasonable grounds to not make an offer for conversion the employer has refused a previous request for casual conversion.
How should employers respond to a casual conversion request?
When employers receive a request from an employee, they should first consult with the employee about the notification. The employer needs to provide a written response within 21 days of the employee’s request, accepting or refusing the conversion.
To understand what to include in the written response, visit FWC.
On what grounds can employers reject an employee’s request?
What are fair and reasonable business grounds?
- Substantial changes would be required to the way in which the employer’s business is organised.
- Significant impacts on the operation of the employer’s business.
- Substantial changes to the employee’s employment conditions would be reasonably necessary to ensure compliance with an industrial instrument (i.e. Awards or EBA).
Where to next?
For this legislative change you need to review and update:
- your casual employee contracts,
- your policies and procedures relating to casuals conversion (including how it is communicated to the relevant people)
to ensure your organisation is compliant.
For tailored advice or assistance updating your contracts, policies and procedures, speak to our compliance experts.
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