NEW - Casual Employment Rules & Statement

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What are the New Casual Employment Changes?

The new laws affect both the definition of casual employment and the process of converting to permanent work. They also introduce new compliance requirements and penalties for employers. Key changes include:

  • A new definition of casual work that considers the real nature of the working relationship, not just the employment contract.
  • A new process for casual conversion, where employees can now request to move to permanent employment.
  • Ongoing obligations to issue the Casual Employment Information Statement (CEIS) multiple times throughout employment.
  • Prohibitions on rehiring permanent staff as casuals to perform the same work.

One of the most critical updates is the new casual employee definition. This change moves away from a purely contract-based assessment to one that considers the real-world dynamics of the employment relationship.

 

Old Casual Employee Definitions

Previously, an employee was considered casual if their employment offer stated there was no firm advance commitment to ongoing work, and they accepted the job on that basis. This classification was determined at the start of the employment and relied heavily on the wording of the employment contract.

 

Key Differences Between Old & New Definitions

The new definition shifts the focus away from what the employment contract says and toward the “real substance, practical reality and true nature” of the working relationship. The contract is still relevant, but it’s no longer the deciding factor on its own. In practice, this means a worker who is required to work a consistent, predictable schedule (i.e. the same shifts, same hours, week after week) may no longer meet the definition of casual, regardless of what their contract says. Courts and regulators will look at the full picture of how the relationship actually operates. The practical takeaway is that a casual label in a contract is not enough on its own. If the working arrangement looks and feels permanent, it may be treated as permanent. Employers need to regularly review the work patterns of their casual staff, not just the paperwork, to make sure the classification still holds up.

 

What is “Firm Advance Commitment to Continuing Work”?

The concept of a “firm advance commitment” remains central, but its assessment has changed. It’s no longer just about what the contract says. A firm advance commitment can now be identified by looking at the practical reality of the relationship. Factors that may indicate a firm advance commitment include:

  • The employer’s ability to offer regular, ongoing work.
  • The employee’s pattern of accepting or rejecting shifts.
  • Whether other employees doing similar work are permanent.
  • A shared, mutual expectation of continuing employment.

It’s  also important to remember that casuals have the right to reject shifts. Always check the relevant Modern Awards for minimum shift lengths to ensure your rostering remains compliant.The Casual Employment Information Statement explains what casual employment means in Australia and what options casual employees have if they want to become permanent.

 

Casual Employee Statement 

Employers must give the statement to new casual employees before they start work or as soon as possible afterwards. They must also provide it again during employment:

  • Small businesses: after 12 months
  • Other businesses: after 6 months, after 12 months, and every 12 months after that

New employees also need to receive the Fair Work Information Statement. Employees on fixed-term contracts must receive the Fixed Term Contract Information Statement.

 

What Makes Someone a Casual Employee?

Whether someone is casual depends on the real nature of their working relationship—not just the wording in their contract. A key factor is whether there is a firm commitment to provide ongoing work. Other considerations can include whether the employer offers shifts, whether the employee can accept or decline them, and whether there is a regular work pattern. A regular pattern of hours on its own does not necessarily mean an employee is permanent. Casual employees generally receive a casual loading or a specific casual pay rate under their award, agreement or employment contract.

 

Changing to Permanent Employment

Eligible casual employees can notify their employer in writing that they want to change to full-time or part-time employment. Under the rules described in the statement, an employee generally needs to have worked for at least six months—or 12 months for a small business—and believe they no longer meet the definition of a casual employee.

The employer must respond in writing within 21 days. If they agree, they must discuss the employee’s new hours, employment status and start date. If they do not agree, they must explain their reasons in writing. An employer can only refuse on specific grounds, such as the employee still meeting the casual definition or there being fair and reasonable operational grounds.

 

If there’s a Disagreement

The employee and employer should first try to resolve the issue through discussions at work. If they can’t reach an agreement, either party may refer the dispute to the Fair Work Commission. The Commission may help resolve the dispute through mediation or conciliation, or make a formal decision. Employers must not take certain actions—such as changing an employee’s hours or ending their employment—to avoid their obligations or prevent them from exercising their rights. 

 

The statement also explains that casual employees may be entitled to 10 paid days of family and domestic violence leave. 

 

For the full statement and the latest guidance, visit fairwork.gov.au/ceis or see attached.

 

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