Recently we wrote about the changes that the Closing the Loopholes legislation is bringing to casual employment kicking off on 26^th August.  It’s been a busy year for all of us so these changes may not be registering on your radar.  Here’s a quick reminder:

Definition of a Casual

In short, the definition of a casual employee will revolve around the following key factors:

• The employment relationship lacks a firm advance commitment to ongoing and indefinite work, taking into account a number of factors, including the real substance, practical reality and true nature of the employment relationship.
• The employee is entitled to a casual loading or specific rate under a fair work instrument or employment contract.

Casual Employment Information Statement

From the 26^th of August 2024, business employers (those with 15 or more employees) across all industries must provide casual employees with the Casual Employment Information Statement as per the following intervals:

• Upon commencement of employment (or as soon as practicable)
• After 6 months of employment
• Every 12 months on the anniversary of the employee’s commencement

Small business employers (less than 15 employees) will be required to provide casual employees with the Casual Employment Statement:

• Upon commencement of employment (or as soon as practicable)
• After 12 months of employment

All employers must maintain records that show the Statement has been provided at the required times.

You can download a copy of the current Casual Employee Information Statement here. Please note that a new version will be available after the 26^th of August.

New pathway to casual conversion

To convert from casual to permanent employee is a process that the employee will need to initiate as of 26^th August. The employer will no longer be responsible for initiating.  A casual employee can commence this process if:

• They have been employed for 6 months (or 12 months in a small business)
• They believe they no longer meet the new definition of casual employee; specifically, that they are working regular and systematic hours

Employers have 21 days to respond to a casual conversion request  from an employee so make sure you are prompt in addressing any that come your way. Responses should be provided in writing and set out the reasons why conversion to permanent employment is not able to be provided. Reasons given must be on genuine business grounds.

Transition

Be aware that there is a transition period for assessing conversion eligibility for casuals employed prior to 26 August 2024.  To be clear:

• employer led offers must continue for these employees for 6 months (does not apply to small business).
• employee led requests continues to apply for 6 months (or 12 months for small business)
• eligible casuals employed before 26 August 2024 can make a notification under the new ‘employee choice’ pathway from 26 February 2025 (or 26 August 2025 if employed by a small business).

If you are unsure as to how this applies to your individual business circumstances, call the team at HR Staff n’ Stuff to discuss and we can make sure you remain compliant with the legislation.

There is a lot to take in so if you want to be sure you are compliant, that your casual contracts address the changes or if you have any further questions, contact the HR Staff n’ Stuff team and we can chat about your individual business needs.