As of 26th August 2024, several key changes to casual employment laws have occurred due to the Fair Work Legislation Amendment (closing Loopholes) Act 2023 and the Fair Work Legislation Amendment (Closing Loopholes No.2) Act 2024.
Changes to casual employment include:
- New Definition of Casual Employee: The test for classifying a casual employee shifts from focusing on the terms of the employment contract to evaluating the “real substance, practical reality, and true nature” of the employment relationship. This includes any mutual understandings or expectations between the employer and employee that might arise after the contract is signed.
- Casual Conversion to Permanent Employment: The previous requirement for employers to oer casual employees’ conversion to permanent roles is being replaced. Employees now have the right to request conversion after six months (for larger businesses) or 12 months (for small businesses). Employers must respond to these requests in writing within 21 days and provide reasons if they deny them.
- Casual Employment Information Statement: Non-small business employers must provide the Casual Employment Information Statement (CEIS) to casual employees multiple times during their employment: before they start, after six months, after 12 months, and every 12 months after that.
- Prohibition on Re-Engaging Permanent Employees as Casuals: Employers will face financial penalties if they dismiss permanent employees and rehire them as casuals to perform similar work.
- Fixed-Term Contracts for Casual Employees: Casual employees can still be engaged on fixed-term contracts. However, new rules limit these contracts to 2 years or one renewal, with exceptions for certain academic or teaching staff.
- Employer Obligations: Employers should update employment contracts to reflect the new definition of casual employment, understand their obligations regarding casual conversion, and ensure proper issuance of a Casual Employment Information Statement.
See Employment Innovations Factsheet: Changes to casual employment factsheet.
If you need help with bookkeeping compliance around the new laws, please get in touch with our bookkeeping team today,
