Blog ● 14 August 2023

Further changes to casual employment likely

Workplace Relations Minister, Tony Burke, has announced plans to reverse the Coalition’s 2021 changes to the FW Act in order to provide an easier route for casuals to convert to permanent, full-time work if they wish to do so.

According to the Minister, Labour’s intended change to the FW Act definition of “casual” will “close the loophole that leaves people stuck classified as casuals when they actually work permanent regular hours” in turn, providing employees with access to leave entitlements and greater financial security.

In ruling out backpay, Mr Burke added that an employee’s conversion from casual to permanent status “will be effective from the date it occurs”.

These new rules, which will seemingly impose a serious restriction on the ability to engage casual employees to work regular and predictable hours, will predominately apply to casuals who have accumulated at least 12 months of service with their employer, though in some cases employees will become eligible after acquiring 6 months of service.

Interestingly, the ACCI has reported that, in practice, when casual workers are “given the opportunity to convert [to] permanent employment… only 1-2 per cent of people that make that choice”.

These changes (among other reforms) are set to be introduced into parliament later this year (likely after September) so stay tuned!

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