Changes to casual employment
The Fair Work Act 2009 was amended on Friday 26 March 2021. The amendments include changes to workplace rights and obligations for casual employees.
These changes were made by the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 (Amendment Act).
Changes were effective from Saturday 27 March 2021.
The Amendment Act introduces a:
- Casual Employment Information Statement
- definition of casual employment
- pathway for casual employees to move to full-time or part-time (permanent) employment.
“The Fair Work Act amendment introduces a new definition of casual employment — based on whether there is a firm advance commitment to ongoing work, not just what is written on the contract.”
Casual Employment Information Statement
Under these recent changes, employers must give all new casual employees a Casual Employment Information Statement (the CEIS) before, or as soon as possible after, they commence employment.
Small business employers – those with fewer than 15 employees – need to give their existing casual employees a copy of the CEIS as soon as possible after 27 March 2021.
Other employers must give their existing casual employees a copy of the CEIS as soon as possible after 27 September 2021. An employer is only required to give an employee the CEIS once in any 12 month period.
So, if a person employs a casual employee temporarily at different stages in a 12 month period, they only need to give them the CEIS once.
The CEIS contains information about:
- a casual employee definition
- when an employer has to offer casual conversion
- when an employer doesn’t have to offer casual conversion
- when a casual employee can request casual conversion
- casual conversion entitlements of casual employees employed by small business employers
- the role of the Fair Work Commission to deal with disputes about casual conversion.
Providing the CEIS
An employers can give casual employees the CEIS:
in person,
by postal mail, or
if the employee agrees, by emailing a copy of the CEIS or a link to the CEIS on the Fair Work website.
Definition of casual employment
The Fair Work Act amendment includes a new definition of casual employment.
This new definition states a person is classified as a casual employee if they accept an employment offer from an employer knowing that there is no firm advance commitment to ongoing work with an agreed pattern of work.
Once employed as a casual, they will continue to be a casual employee until they either:
- become a permanent employee through:
- casual conversion, or
- being offered and accepting the offer of full-time or part-time employment, or
- cease employment with the employer.
“Casual employees now have a clear pathway to convert to full-time or part-time employment under casual conversion rules.”
Becoming a permanent employee
In addition to the definition, the Amendment Act adds a new entitlement to the National Employment Standards (NES).
This gives casual employees a pathway to become a full-time or part-time (permanent) employee – known as ‘casual conversion’.
An employer (other than a small business employer) has to offer their casual employee ‘casual conversion’ to full-time or part-time (permanent) when the employee:
- has worked for their employer for 12 months,
- has worked a regular pattern of hours for at least the last 6 of those months on an ongoing basis,
- could continue working those hours as a permanent employee without significant changes.
Some exceptions apply, including:
- small business employers (fewer than 15 employees)
- if an employer has ‘reasonable grounds’ not to make an offer to a casual employee for casual conversion.
Making and responding to offers and requests.
There are rules relating to how employers and employees need to make and respond to offers. There are also rules for offering casual conversion to existing casual employees. You can find out more information about this on the Fair Work website.
If you want to know more about the changes to casual employment contact our team or visit the Fair Work website to read the full media release.
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
The Employment Offer Matters Most
Casual status is determined by the initial employment offer, not by how regular the hours later become.
Conversion Rights Must Be Managed Carefully
Employers need systems in place to track eligibility and respond to casual conversion requests correctly and on time.
Documentation Is Critical
Clear contracts, written offers and accurate records help support correct classification and reduce legal risk.
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Frequently Asked Questions
What changed with casual employment laws in Australia?
The changes clarified the definition of a casual employee, focusing on the nature of the employment offer rather than ongoing work patterns, and introduced pathways for casual employees to convert to permanent employment.
How is a casual employee now defined?
A casual employee is defined as someone who is offered employment with no firm advance commitment to ongoing work, based on the terms of the employment offer rather than hours worked over time.
What is casual conversion?
Casual conversion allows eligible casual employees to request to move to part-time or full-time employment after a qualifying period, provided certain conditions are met.
Do employers have to offer casual conversion?
Employers must assess eligibility and either offer conversion or respond to an employee’s request in writing, unless there are reasonable business grounds to refuse.
What are the risks of getting casual employment wrong?
Misclassification can lead to back pay claims, penalties, and disputes over entitlements such as annual leave and personal leave.
What changed for casual employment in Australia and what do employers need to do?
North Advisory explains that changes to casual employment started from 27 March 2021, following amendments to the Fair Work Act 2009. The updates introduced a clearer definition of casual employment, a required Casual Employment Information Statement (CEIS) that must be given to casual staff, and a formal pathway for eligible casual employees to convert to permanent (full-time or part-time) employment through “casual conversion”.
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