Casual Workers 101: What Every Employer Should Know

If you employ casual workers, it’s important to understand the rules and responsibilities that come with it.

Casual employment offers flexibility for both employers and employees, but getting it wrong can lead to headaches like disputes or even legal challenges.

Here's what you need to know to stay on top of things and make sure you're doing it right.

What Is A Casual Worker?

A casual employee is someone who doesn’t have a guaranteed ongoing job. This means there’s no “firm advance commitment” to regular, ongoing work.

But what does that actually mean? It’s not just about what’s in the employment contract - it’s about how the working relationship plays out in real life.

To figure out if an employee is truly a casual worker, ask yourself:

• Can they say “no” to shifts without consequences?

• Do they have a regular pattern of work, or is it unpredictable?

• Is there any expectation that they’ll keep getting the same shifts over time?

  
  

Casual employees are paid a higher hourly rate (called a casual loading, generally 25%) to make up for not getting entitlements such as annual leave or sick leave.

Casual Conversion

Did you know casual employees can request to go permanent? It’s called the employee choice pathway, and it’s part of the National Employment Standards (NES).

Here’s how it works:

• If a casual has been with you for at least 6 months (or 12 months for small businesses) and they’ve been working regular hours, they might be eligible.

• You’ll need to respond to their request in writing within 21 days.

  
  

What Happens Next?

1. If you agree: You’ll need to confirm their new type of employment (e.g., part-time or full-time), their hours, and when the change takes effect.

2. If you say no: You’ll have to explain why, in writing. This could be because of operational reasons or because they still meet the definition of a casual employee.

Make sure you communicate clearly.

A simple chat about what’s possible can avoid misunderstandings.

What If There’s a Dispute?

Sometimes, employers and employees don’t see eye to eye on casual-to-permanent transitions.

If that happens:

1. Start with a conversation: Most issues can be sorted out with an open, honest discussion.

2. Get in touch: If you can’t resolve things in-house, I can help mediate or resolve disputes. The idea is to try to find a solution that works for everyone.

   
   

Don’t try to avoid your obligations. Actions like cutting hours, changing work patterns, or ending employment just to dodge the casual conversion rules are unlawful.

These kinds of moves can be seen as “adverse action,” which could lead to penalties. Instead, focus on understanding and following the rules—it’s much easier in the long run.

Action Steps

• Take time to familiarise yourself with the Fair Work guidelines for casual employees.

• Review your employment contracts: Ensure your casual employment contracts clearly outline the nature of the role, including casual loading and flexibility of hours. Update contracts if needed to reflect current legal standards.

• Keep an eye on your casual employees’ work patterns. If they’re regularly working consistent hours, assess whether they might be eligible to request a transition to permanent employment.

• If you're feeling lost, get in touch sandra@hrconsultingtas.com.au

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The content provided on this website serves as a general information resource on the subjects discussed, and should not be considered tailored to specific individual circumstances or a replacement for legal counsel. While we exert significant effort to ensure the accuracy of our information, HR Consulting TAS cannot ensure that all content on this website is consistently accurate, exhaustive, or current. Recommendations by HR Consulting TAS and any information acquired from this website should not be regarded as legal advice.