Under Closing Loopholes Laws. There are changes to the rules regarding a casual employee converting to permanent employee.
Effective 26 February 2025, casual conversion in Australia will transition to an "employee choice pathway". This means casual employees can initiate the process to convert to permanent employment by notifying their employer if they believe they no longer meet the definition of a casual worker.
This new “employee choice pathway” replaces the previous employer-driven conversion process.
The change applies to most employers, with small businesses having a later deadline of August 26, 2025.
Key points about the casual conversion changes effective 26 February 2025:
Employee driven: Casual employees can now choose to request conversion to permanent employment by giving written notice to their employer.
Eligibility: To initiate the conversion, an employee must have been employed for at least 6 months (or 12 months for small businesses) and believe they no longer meet the definition of a casual employee.
Employer response: Employers must respond to a conversion request within 21 days, either accepting or declining with valid reasons.
Reasons for refusal: Employers may refuse a conversion request if the employee still meets the casual definition or there are reasonable operational grounds for denial, such as significant business disruption.
There are risks to engaging long-term casual employees. Read Casual Employees: mitigating the risk of a retrospective claim >
For more information or assistance managing working arrangements and employment agreements while meeting your employer obligations and mitigating unnecessary risks, please contact us today.