Human Resources (HR) | Fair Work | Casual Conversion

Changes to Casuals!

Changes to the

Modern Awards

The Fair Work is releasing significant changes to Casual conversion that may lead to many businesses, including those within the Labour Hire sector, to change the way they make hiring decisions and manage their labour. Subject to the applicable legislation, casual conversion is where casual employees are the given the right after a certain period of employment, to request a change to their employment arrangement to full time or part time.

As a part of the Modern Award review in 2017, the Fair Work Commission determined that all Modern Awards should include a casual conversion term. On 09 August 2018, the Commission finalised the clauses relating to casual conversion, and as of 01 October 2018, 84 modern Awards will be changed. Modern Awards that already contain a casual conversion term will not, at this point in time, be affected by these changes.

The changes listed by the Fair Work Commission do not take effect until the start of the first full pay period on or after 01 October 2018.

A Summary

The casual employee must be employed with the employer for a period of 12 months or more and must, over the previous 12 month period, have worked regular hours of work, which could be continued as a full time or part time employee. Casual employees looking to convert must also make the a request to convert in writing upon occurrence, must be begin at the next pay cycle.

A request may be rejected provided that consultation has occurred between the employee and employer, there are reasonable grounds based on facts which are known or reasonably foreseeable, and refusal must be in writing with all reasons set out clearly. Casual employees engaged for short periods and/or work irregular shifts or hours will not meet the criteria to convert.

All disputes relating to this matter must be resolved through the dispute resolution provision of the applicable Award.

Our Advice

HR Pay Solutions
can provide your
business with advice

It is important for business to ensure compliance with the changes as recent cases have proven that non-compliance may result in major penalties. HR Pay Solutions recommends that businesses:

• Check the applicable Modern Award to determine and understand the requirements thus ensuring compliance; and

• Give all casual employees a copy of the conversion clause within the first 12 months of their initial engagement. For casual employees already employed, businesses must provide a copy of the conversion clause by 01 January 2019.

The content of this article does not constitute legal advice or guidance. Please contact HR Pay Solutions for information and advice regarding this matter or other matters relating to Payroll, Human Resources and Safety