Casual Conversion – what you need to know

Deborah Peppard - HR Director

​The past couple of years have been tumultuous when it comes to casual employment – the definition of casual has been the subject of a legal case and a subsequent appeal followed by new legislation that came into effect in March 2021.    September brings with it a key deadline regarding casual conversion so let’s take a look at what you need to know and what you need to do…

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​CASUAL EMPLOYMENT INFORMATION STATEMENT
The definition of a casual employee has been tightened up and you can read more about it here.  Key to this is the following:

• Employers with 15 or more employees must provide the Casual Employment Information Statement (CEIS) to existing casual employees as soon as possible after 27 September 2021.  
• Employers with fewer than 15 employees must provide the CEIS to existing casual employees as soon as possible post 27 March 2021
• To make it easier, you can download the CEIS here.

CASUAL CONVERSION
If you have casual employees, you need to understand the rules around casual conversion.  In short, they are:

Employers with more than 15 staff:
The obligation is on the EMPLOYER to review their situation and MAKE the offer if…

• the employee has been employed by the employer for a period of 12 months
• during at least the last 6 months of that period, the employee has worked a regular pattern of hours on an ongoing basis; and
• without significant adjustment, the employee could continue to work as a full-time or part-time employee.

Employers must make a casual conversion offer in writing before 27 September 2021 or within 21 days after 12 months of employment has occurred, whichever is later. Once the offer has been made, the employee has 21 days to respond. 

We suggest that where the employer is not able to make an offer to convert a casual employee based on genuine business reasons, that rather than do nothing, it is best to get out on the front foot and update employees on the situation. 

We recommend you provide a letter to the eligible employees advising them that the business has undertaken a review to determine if casual conversion is possible, but at this time, the business cannot support a conversion to permanent employment for the following reasons, and list them. 

​Communication is always key in ensuring employees understand that you have met your obligations and conducted a review and the reasons why they cannot be offered permanent employment at this time. 

Employers with less than 15 staff:
Small business employers are not obligated to offer casual conversion to their casual employees HOWEVER the employees have the right to request this if:

• the employee has been employed by the employer for a period of 12 months
• during at least the last 6 months of that period, the employee has worked a regular pattern of hours on an ongoing basis
• without significant adjustment, the employee could continue to work as a full-time or part-time employee
• the employee has not refused an offer for casual employment
• the employer has not notified the employee in the last 6 months that they will not be offered casual employment on reasonable grounds; and
• the employer has not refused a request from the employee to become a permanent employee in the last 12 months

There are reasonable grounds to refuse casual conversion – such as the business work is seasonal, the employees role will not exist in 12 months time, the employees work will reduce significantly in the next 12 months, there will be a change in the days and times that the employee is required to work and so on…..

The countdown is on for those that need to consider the 27 September deadline.  If you need support managing the communication process or conversion of casual employees to permanent roles, contact the team at HR Staff n’ Stuff now.  

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