When Does Ending Casual Employment Count as a Dismissal?

If you employ casual staff, you might assume that ending their employment is simple: when the work dries up, you just stop offering shifts. But under Australian law, it's not always that straightforward. 

In fact, ending a casual employee’s engagement can sometimes be legally considered a dismissal, bringing risks like unfair dismissal claims, especially if the casual has been working regular hours over a period of time. 

Here’s what you need to know to avoid the pitfalls and protect your business. 

1. What Makes Someone a Casual Employee? 

   Under the Fair Work Act 2009, a casual employee is someone who is offered a job without a firm commitment to ongoing work, and accepts the job on that basis. 

   Casual employees typically: 

   → Work irregular or flexible hours. 

   → Get paid a higher hourly rate (casual loading) instead of receiving benefits like annual leave. 

   → Don’t have guaranteed shifts. 

   → Can usually decline work without penalty. 

   That said, if a casual employee has been working regular, predictable hours for an extended period, they might not be viewed as "truly casual" anymore, and different rules can apply. 

   
   

2. Can You Dismiss a Casual Employee? 

   Yes, you can end a casual employee’s engagement. However, how you do it, and how long they’ve been working for you, matters. 

   
   

   Legally, a dismissal happens when: 

   → You end the employment relationship (for example, by telling them you no longer have work for them), or 

   → You take action that forces them to resign. 

   
   

   For casuals, just stopping their shifts indefinitely or removing them from the roster altogether can be treated as a dismissal, even if you never formally say "you're terminated". 

   If you want to end a casual’s employment properly and safely, you need to communicate this clearly. 

   
   

3. When Can a Casual Claim Unfair Dismissal? 

   A casual employee can lodge an unfair dismissal claim if they meet 3 criteria: 

   1. They’ve been employed for at least 6 months (or 12 months if you’re a small business with fewer than 15 employees). 

   2. Their work was regular and systematic: meaning they had a consistent pattern of shifts, not just occasional or random work. 

   3. They had a reasonable expectation of continuing employment on a regular basis. 

   If all 3 apply, then legally, they’re considered a long-term casual, and they have similar unfair dismissal rights to permanent employees. 

   If you dismiss a long-term casual and the process is unfair (harsh, unjust, or unreasonable), they could challenge the termination at the Fair Work Commission. 

   
   

4. What Does “Regular and Systematic” Mean? 

   The term regular and systematic doesn’t mean the casual must have worked exactly the same hours every week. 

   It means: 

   → There’s a pattern or system to their shifts (even if the days or hours vary). 

   → They were regularly offered work and generally accepted it. 

   → There was an ongoing expectation that they’d keep getting shifts. 

   
   

   For example, a casual who’s worked every weekend for 8 months is very different from someone who’s filled in randomly once every few months. 

   A stable, repeating roster often strengthens a casual's argument that they had a reasonable expectation of ongoing work. 

   
   

5. What Happens If You End a Casual’s Employment? 

   When you end a casual employee’s engagement: 

   → No notice is required under the National Employment Standards. 

   → No redundancy pay is owed. 

   → You must pay all outstanding wages (including any penalty rates or loadings). 

   → Long-term casuals may be entitled to pro-rata long service leave, depending on your state or territory’s laws. 

   
   

   However, while notice and redundancy rules are more flexible for casuals, you still need to ensure the dismissal is fair, especially if the casual has been working regularly over time. 

   
   

6. Common Mistakes to Avoid when Ending Casual Employment

   Here are some traps business owners fall into when ending casual employment: 

   
   

   → Assuming casuals have no rights. Even casuals have unfair dismissal and general protections rights if they meet certain conditions. 

   
   

   → Cutting hours to zero without clarity. Simply removing a casual from the roster can still count as a dismissal. Always be clear if you are ending the relationship. 

   
   

   → Overlooking the casual conversion rights. Long-term regular casuals have a right to request permanent employment after 12 months. Ignoring this can land you in hot water. 

   
   

   → Not documenting the casual arrangement properly. Having a written casual contract, clear rosters, and communication about the nature of the engagement helps defend against claims later. 

   
   

   → Firing casuals for the wrong reasons.  You must not dismiss any employee, including casuals, for reasons like discrimination, making a workplace complaint, or exercising a workplace right. 

   
   

7. How to Protect Your Business 

   If you need to end a casual engagement, protect your business by: 

   → Communicating openly: Don’t just stop offering shifts, tell the casual clearly if you’re ending the employment relationship. 

   → Keeping good records: Document rosters, communications, and the reasons for ending the engagement. 

   → Acting fairly: Give the casual a chance to respond if there are issues around performance or conduct. 

   → Being consistent: Apply the same approach to all employees in similar situations to avoid discrimination claims. 

   
   

   If you’re unsure, get in touch before taking action. It’s easier (and cheaper) to get it right upfront than to fight a claim later. 

   Need help managing casual staff or navigating tricky terminations? 

   I work with small and medium businesses to make HR easier, safer, and less stressful. Whether it’s reviewing your casual contracts, helping you handle underperformance, or supporting you through a dismissal, I’m here to help.  

   
   

   Book a free discovery call today. Let’s make managing staff the least of your worries. 

Get in Touch

Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225  

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