One of the main changes is the introduction of a new statutory definition of a ‘casual employee’. The definition includes the following factors:
For the purpose of this new definition, the legislation also includes the following considerations to assist in determining whether an employer makes ‘no firm advance commitment to continuing and indefinite work according to an agreed pattern of work’ at the time the offer of employment is made:
Once employed as a casual, an employee will continue to be a casual employee until they either:
Another important change is the addition of a new entitlement to the National Employment Standards that provides casual employees with a pathway to convert to permanent employment (known as ‘casual conversion’).
The casual conversion rules differ for small business employers (i.e. fewer than 15 employees) and all other employers and incorporate specific eligibility criteria (including an employment period of at least 12 months). A summary of these rules can be found within the new Casual Employment Information Statement (refer below):
Employers are also now required to provide a Casual Employment Information Statement (CEIS) to every new casual employee upon commencement of employment, in addition to a Fair Work Information Statement. The CEIS incorporates the following information:
Small business employers (i.e. fewer than 15 employees) are required to provide a copy of the CEIS to all existing casual employees (employed prior to 27 March 2021) as soon as possible after the 27 March 2021. All other employers are required to provide a copy of the CEIS to existing casual employees as soon as possible after the 27 September 2021.
In light of the recent legislative changes to casual employment, employers should conduct a review of the current contractual arrangements with all casual employees and consider and address their new obligations.
Navigating workplace and employment laws can be a minefield for employers and substantial penalties can apply for non-compliance. Whilst the Fair Work Ombudsman website is an excellent source of information, employers should seek specialist legal advice if uncertain regarding specific conditions of employment or their workplace rights and responsibilities.
If you have questions or need direction our team can put you in touch with contacts who can assist you. Please talk with us if you would like more information.
We wish you and your business every success!