THE CHANGES TO CASUAL EMPLOYMENT

The Fairwork Act 2009 (Cth) was amended (from 27 March 2021) to include a new definition of casual employee. Under Section 15A of the Fairwork Act 2009 (Cth), a person is a casual employee if they accept a job offer with the knowledge that there will be no firm advance commitment that the work will continue indefinitely with an agreed work pattern. For instance, an employee is considered casual if they have no fixed roster, their working hours change depending on the employer’s needs, or the employee can refuse or swap swifts.

The Fairwork Act 2009 (Cth) also includes a right to request a casual employment to be converted to permanent employment (full time or part time) with the employer’s and employee’s agreement under Division 4A of the Fairwork Act 2009 (Cth). Under Section 66B, the employer must make an offer of conversion if the employee has been employed for a 12-month period and in the last 6 months of that 12-month period, the employee has a regular pattern of working hours on an ongoing basis and the pattern of working hours can be continued as a permanent employee without significant adjustment. The employee also has residual rights to request for such conversion under Section 66F.

Another key amendment of the act is the requirement for the employers to provide a new ‘Casual Employment Information Statement’ to employees under Section 125B.

The final amendment included the ability to offset entitlements against casual loading under Section 545A. This applies if an employer incorrectly categorises a casual employee and has compensated the employee for the relevant entitlement. For instance, if there is a backpay of permanent entitlements, this can help in preventing the receipt of both casual loading and back payment entitlements (i.e. annual leave).

It is vital for both employers and employees to ensure their employment contracts are accurate to reflect the recent changes of the act. The employers also have the duty to review the pattern of working hours and provide the casual employees with a Casual Employment Information Statement.

If you have an employee with a dispute regarding casual employment or are an employer or employee who require advice, Straits Lawyers are here to help. We are now offering online services in both English and Chinese.

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Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.