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Casual Conversion – how does this impact your business?

Casual employee's - do you have to offer permanent employment?
Employer obligations to casual employees

The National Employment Standards (NES) provides casual team members with a pathway to becoming a permanent employee. Read on to find out more.

Who can access a casual conversion?

If you have a casual team member who has worked for you for 12 months, with an ongoing regular pattern of hours for the last 6 months they need to be offered the option to convert to a full-time or part-time (permanent, ongoing) employment.

What is considered 'regular pattern of hours'?

Regular implies a repetitive pattern. This does not mean frequent, often or constant. A general rule of thumb is if work was offered and accepted regularly it can no longer be regarded as occasional.

What is the Process of Casual Conversion?

An Employer needs to make a written offer to convert their casual employee to permanent employment within 21 days after the employee’s 12-month anniversary if the employee:

· Has been employed by the employer for 12 months;

· Has worked a regular pattern on an ongoing basis for at least 6 months;

· Could continue working these hours as a full-time or part-time employee without significant changes.

The team member has 21 days to respond to the offer. If they don’t respond the Employer may assume the offer has been declined.

What happens if I don’t offer Casual Conversion?

If an employer (other than a Small Business Employer) does not offer casual conversion they still need to write to the team member within the 21 days of their 12-month anniversary providing a reason they are not making an offer.

** A Small Business Employer is exempt

A Small Business Employer with less than 15 team members is exempt from having to make a casual conversion offer. But their casual team members may still request a conversion after their 12 month anniversary and the Employer and in this scenario must have a reasonable ground to refuse the request.

Tools and Resources

For more information about casual conversion, including reasonable business grounds for not refusing a request, what to do if your casuals request a casual conversion and how to determine if the employee’s conversion should be full-time or part-time against the relevant award please contact Humanistic HR.


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