Federal Labor’s new laws that change the definition and workplace rights of casual employees kick off on 26 August. The changes present a host of new challenges for already stretched small and medium businesses. Let’s unpack what it means for your enterprise.
Firstly, the change redefines what a 'casual employee' is under the Fair Work Act 2009. Now, someone is only a casual if: • there isn’t a firm advance commitment to ongoing and indefinite work, and • they are entitled to a casual loading or specific rate of pay for casuals under a fair work instrument or contract of employment. The new definition also considers “the real substance, practical reality and true nature of the employment relationship”.
Secondly, it replaces the old way of converting casuals to permanent roles with a new 'employee choice' pathway. Instead of employers offering conversion, casual workers can ask for it themselves (after 12 months for small business employees; six months for others).
After consulting with the employee, an employer has 21 days to respond in writing to the request.
Can you refuse a request? Employers can only refuse a request if the worker still fits the definition of casual, if there's a good reason related to how the business operates, or if it would break other work laws.
Other grounds for refusal include: • substantial changes would be required to the way an employer’s business is organised
• there would be significant impacts on the business, and
• substantial changes to the employee’s terms and conditions would be reasonably necessary. Remember, employees now have the right to request conversion, and it's up to the employer to consider and respond to their request. Need some advice about the new laws? Got an issue at your workplace? We’re here to help. Phone our advice line on 13 29 59. |
