New rules around Casual Employees starting 26 August 2024
As a business owner are you aware of the new rules around casual employees that come into effect from 26 August 2024? If not here is a quick recap.
- New casual definition. Employees will only be casual if there is no firm advance commitment to continuing and indefinite work and the employee is entitled to casual loading or specific casual rate of rate (as per their award or contract). This will be viewed under the real substance of the relationship based on the conduct at the commencement of employment. Note existing casuals as at 25 August 2024 will generally stay as casuals unless they convert to permanent or otherwise agreed.
- New conversion to permanent. The employee may issue a notice that they believe they no longer meet the requirements of the casual employment definition. They can do this 12 months after starting (if the business has less than 15 staff) or 6 months for other businesses. You the employer has 21 days to respond to either accept or decline the notice. If accepting, the business must set out the new terms of the employment arrangement. You can only decline if there are fair and reasonable operational grounds and you must detail these to the employee. And they have the right to challenge this.
- New Casual Employment Information Statement (CEIS). As soon as practical after the new casual starts work, they need to be given the new CEIS. Then for small business (less than 15 employees) another copy after 12 months. For other employers, another copy after 6 months, 12 months and every 12 months thereafter. You can get a copy of the new CEIS here (note if you go there before 26 August 2024 you will get the old version – Nov 2022 – and not the new version).
- What happens to existing casual staff as at 25 August 2024? They continue to be managed under the existing rules. If you have less than 15 employees then the business owner does not need to do anything unless the casual asks for conversion to permanent after 12 months of employment. If you have 15 or more staff, then after 12 months of employment you need to advise them if you are offering to convert them to permanent or not. They can also request conversion after 12 months of employment. If they do ask for conversion, this is assessed based on the old rules, not the new rules above.
You can learn more about the changes to casual employment rules at the Small Business Peak resource hub (a free service operated by COSBOA – Council of Small Business Organisations Australia) which provides easy to use free resources on workplace relations and other IR changes being introduced in Australia targeted at small business.
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