Many businesses employ a mix of full-time, part-time, and casual workers. Casual employees often start with irregular hours, but over time, some may develop regular work patterns.
A key legal ruling (WorkPac v Rossato) confirmed that simply labelling an employee as "casual" does not automatically make them one. A true casual employee has inconsistent, irregular, or short-term work. Those with ongoing, predictable hours may be entitled to permanent employee benefits, regardless of casual loading payments
Risks for Employers
Employers should regularly review long-term casual arrangements, as these employees may be deemed permanent if they:
Work a regular pattern of hours for at least 12 months
Could perform the same work as a permanent employee without significant adjustments
Have an implied expectation of ongoing work
Without clear documentation and communication, long-term casuals can claim retrospective entitlements, including paid leave.
Best Practices for Employers
Review Casual Arrangements – Regularly assess casual employees’ work patterns.
Discuss Employment Status – If an employee’s hours suggest permanency, discuss transitioning to a permanent role and issue a new contract if agreed.
Document Declined Conversion Offers – If an employee chooses to remain casual, obtain written confirmation to protect against future claims.
Maintain a Flexible Roster – Ensure casual shifts remain variable and at the employee’s discretion.
Annual Casual Status Review – Meet with long-term casuals annually to reaffirm their employment status.
Casual employees can request conversion to permanent employment. Employers can only refuse based on reasonable business grounds. Learn more >
To mitigate legal risks and foster employee engagement, it’s important to proactively manage casual employment arrangements.
WorkPlacePLUS can help you meet your employer obligations and mitigate the risk of costly claims. For more information and expert support, please contact us today.