If you have 15 or more employees, you need to read this article

There is new legislation that now requires all employers to offer their casual employees a permanent position. It’s called “Casual Conversion” and it’s here to stay!

Determining which staff are eligible

An employee who is eligible for Casual Conversion can work full-time or part-time. To be eligible, they must:
– Be employed by you for at least 12 months and
– Have worked a regular pattern of hours which are likely to continue without significant adjustment

If eligible, the offer must be made within 21 days of the employee’s 12 month anniversary with you. Or immediately if you have any employees who have been with you for over 12 months.

There are 3 situations when Casual Conversion is not required. They are:

1. The employee’s position will no longer exist within the next 12 months

2. The hours of work available for the employee will significantly reduce

3. There will be substantial changes to the days the employee will be required to work OR the hours of work cannot be accommodated within the days or times the employee is available to work

If an offer of Casual Conversion won’t be made, the employee needs to be notified in writing.

What is the process for offering Casual Conversion?

There is a 4-step process which must be followed when making a Casual Conversion offer:

Step 1: Before making an offer of Casual Conversion, the employer must meet with the employee to discuss the details of the offer.

Step 2: After the meeting, an offer must be made in writing.

Step 3: The offer must be like for like. In other words, if the employee currently works part-time, the offer of Casual Conversion should also be for part-time work.

Step 4: The offer must be provided within 21 days after the employee reaches their 12 month anniversary.

Once receiving the offer, employees have 21 days to accept it. Their acceptance must also be in writing.

If the offer is accepted, a new contract of employment is required to reflect the change in employment status and the employee should receive a copy. We can assist with preparing the new contract if you need help as well as negotiating the terms of the offer with your staff.

If the employee doesn’t respond to the offer, it is deemed they have rejected the offer. However, they retain a residual right to request Casual Conversion at a later stage.

Are you ready to introduce Casual Conversion to your employees?

New legislation is always tricky to get your head around. So if you have 15 or more employees, you need to ensure any casual staff who have been working with you for 12 months or more are offered Casual Conversion.

For tailored advice, contact the team at End2end Business Solutions on (02) 8977 4002