Navigating the New Landscape of Casual Employment: What Your Business Needs to Know
For years, the line between casual and permanent employment in Australia has been a complex and often contentious issue. Recent legislative changes have redrawn this line, introducing a new "employee choice" framework that every employer must understand and implement.
These changes are not just administrative tweaks; they fundamentally alter the rights and obligations of both employers and casual employees, particularly concerning an employee's ability to choose to become a permanent employee.
The Old vs. The New: A Shift in Power
Previously, the pathway from casual to permanent employment was primarily driven by the employer. A casual employee who had worked a regular pattern of hours for at least 12 months had to be offered the option to convert to permanent employment by their employer.
Now, the power has shifted. The new laws, effective from late 2024/early 2025, introduce a new definition of "casual employee" and empower the employee to initiate the conversion process.
Key Change 1: The New Definition of a Casual Employee
The first critical change is the new definition of a casual employee. A person is a casual employee only if:
There is an absence of a firm advance commitment to continuing and indefinite work.
The employee is entitled to a casual loading or a specific rate of pay for casuals.
This definition focuses on the practical reality of the working relationship, rather than just the terms of the employment contract at the start.
Key Change 2: Employee Choice - How Casuals Can Request to Become Permanent
The most significant change is the introduction of "employee choice." Here’s how it works:
- Eligibility: A casual employee can request to become a permanent employee if they have been employed for at least six months (or 12 months for small business employers).
- Regular Pattern of Hours: The employee must have worked a regular pattern of hours for the last six months.
- The Request: The employee makes a written request to their employer.
- Employer's Obligation: The employer must grant the request unless there are "fair and reasonable operational grounds" to refuse it.
What are "Fair and Reasonable Operational Grounds" to Refuse a Request?
An employer isn't obligated to say yes automatically. Legitimate reasons for refusal include:
- The employee's position will not exist in the next 12 months.
- The employee's hours of work will be significantly reduced.
- There will be a significant change in the days or times of work that the employee cannot accommodate.
- Granting the request would not comply with a recruitment or selection process required by law.
It's crucial to note that simply preferring a flexible workforce is not a valid reason for refusal. Employers must have solid business grounds to deny an employee's choice.
What Your Business Needs to Do Now
Review Your Workforce: Identify all employees currently engaged as casuals.
- Assess Employment Patterns: Determine which of your casual employees have worked a regular pattern of hours for six months or more.
- Update Your Contracts: Ensure your casual employment agreements are updated to reflect the new definition and the employee choice provisions.
- Provide Information: You must provide all new casual employees with the Casual Employment Information Statement (CEIS) before, or as soon as possible after, they start work.
- Prepare for Requests: Have a clear, fair, and documented process for receiving and responding to employee requests to convert to permanent employment. This includes understanding the valid grounds for refusal.
The Bottom Line: Proactive Management is Key
These changes are designed to provide greater security and certainty for long-term casual employees. For employers, they demand a more proactive and transparent approach to managing your workforce.
Failing to comply with these new obligations can lead to disputes and penalties. It is essential to understand your responsibilities and ensure your practices are up-to-date.
If you are unsure about your obligations or need assistance navigating these new casual employment laws, contact us for expert legal advice.

Senior Solicitor
Email: kristen@hntlegal.com.au









