The Fair Work Commission has decided all modern awards must contain a provision that allows casual employees to convert to permanent employment if they choose.
Dubbed the “casual conversion” clause, casual employees may apply for full-time or part-time employment if the following criteria are met:
- The casual employee has worked a pattern of hours continuously for 12 calendar months
- This pattern of hours is expected to continue without significant adjustment
Employer obligations
The new Fair Work decision requires employers to provide all casual staff with a copy of the casual conversion clause within the first 12 months of their initial employment by the business.
The Commission also noted all modern awards should contain a clause specifying a minimum engagement period of 2 hours for casuals. This includes the 34 modern awards that currently do not contain a minimum engagement period.
Conversion Not Automatic
Importantly, conversion from casual to permanent employment is not automatic. There are 3 different grounds for refusal. These are:
- It is expected the position will cease to exist within the next 12 months OR
- The casual employee’s work hours will significantly change (or reduce) within the next 12 months OR
- Conversion from casual to full-time or part-time employment would require significant adjustments to the hours of work to accommodate the request
WARNING
If you have any staff working under modern awards that do not include minimum engagement periods, talk to us. You are now required to do so. If you aren’t sure, contact us for advice.
We’re here to help
Workplace compliance requirements are constantly evolving which makes it extremely difficult for employers to keep up. Yet every employer – regardless of size – is expected to comply with all relevant workplace legislation.
End2End Business Solutions is your outsourced HR department. We’re here to help you manage your staff and remain compliant. For assistance with any employee issue, call us on 02 8977 4002.