Closing Loopholes Part 2 brings some major changes regarding casual employment. Here are key considerations for business owners before the effective date of August 26, 2024:

Change in definition: A new definition of casual employment considers the practical reality of the relationship, as opposed to merely the terms in the employment contract (as was previously the case). Broadly put, the new definition encompasses an absence of a firm advance commitment to continuing and indefinite work. It also covers circumstances where the employee is entitled to a casual loading or specific rate of casual pay under an industrial instrument.

Best Practice and Avoiding Possible Compliance Issues

Consultants are hired for their knowledge and expertise. In their capacity as experts, HR consultants can provide recommendations for improving operating efficiency, changing or defining company culture, and managing your resources more effectively. As consultants they also assess your company’s practices against industry standards to ensure you are following best practices. It’s all about attracting and retaining talented people, building employee engagement, and resolving issues.

1. Pathway to conversion: The changes create a new pathway for casual conversion to permanent employment, which focuses on “employee choice”. This will replace the existing regime where the onus was on the employer to review their workforce and proactively offer conversion to permanent employment. Instead, employers will only need to act when they receive an ‘employee choice’ notification from a casual employee after 6 months employment (12 months for small business)
2. Casual Employment Information Statement: Alongside its provision upon commencement, the Casual Employment Information Statement must now be supplied every six months from the start of employment (or every 12 months for small businesses).
3. New anti-avoidance provisions: Stricter regulations will be implemented against actions such as dismissing or threatening to dismiss workers to rehire them as casuals and making misleading representations concerning casual employment.

What does ‘practical reality’ in casual employment really mean?

So, you think you have yourself covered by having an employment agreement in place which defines an employee as a casual? Think again! Employers need to consider what the actual reality of the employment relationship is. In considering the practical reality of casual employment relationship keep in mind the following:

Employees are not genuine casuals:

• If they have advance roster of more than 2 weeks with little flexibility to alter their availability.
• If they have little scope to alter their hours or availability and are met with hostility when they do so.
• If they have a regular ongoing/continuing pattern of employment.
• If they are promised something more or hint at permanency of employment.
• If they do not receive a causal loading or specified rate under an industrial agreement.