From 26 February 2025, major changes to Australia’s employment laws will give casual employees the right to request permanent employment. These reforms mean that business owners must understand their new obligations to stay compliant while fostering a positive workplace culture.
Understanding the New Casual Conversion Rights
Under the latest Fair Work reforms, eligible casual employees can now submit a written request to transition to permanent full-time or part-time employment. This “employee choice pathway” is designed to give casual workers greater job security and stability.
Who Is Eligible?
A casual employee can request permanent employment if they:
- Have been employed for at least 6 months (or 12 months for small businesses with fewer than 15 employees).
- Have worked regular and systematic hours for the past 6 months, without significant variation.
Employer Obligations: What You Must Do
When an employer receives a written request for casual conversion, they must:
- Consult with the employee – Discuss potential changes, including employment status, working hours, and transition date.
- Respond in writing within 21 days, stating whether the request is accepted or refused.
If the Request Is Accepted:
Employers must confirm in writing:
- The employee’s new status (full-time or part-time).
- Their agreed working hours.
- The commencement date of their permanent role.
If the Request Is Refused:
Employers must provide valid business grounds in writing.
What Are “Reasonable Business Grounds” for Refusal?
Employers can refuse a casual conversion request if:
- The role does not meet the criteria for permanent employment.
- Converting the employee would significantly disrupt business operations.
- The role is likely to change or end within 12 months.
- The change would result in significant financial strain.
- Legal or regulatory barriers prevent the conversion.
It’s essential to document these decisions properly to avoid disputes.
Best Practices for Employers
To manage these changes smoothly, business owners should:
- Update Workplace Policies – Ensure employment contracts and HR policies reflect the new conversion rights.
- Train Management Teams – Educate managers on handling requests professionally and lawfully.
- Maintain Clear Records – Document requests, discussions, and decisions to protect your business from potential claims.
- Seek Expert HR Guidance – These changes can be complex, and professional HR support can help ensure compliance and fairness.
Need help managing your casual workforce? Contact Strategic HR today for expert HR advice and compliance support.
