Casual Employment Changes - Are You Across It?

As of 26 August 2024, the rules around casual employment in Australia are changing  - and this time, it is not a minor tweak. It is a full legal reset. If you engage casual staff in your business, this update is essential reading.

Let us break it down and cut through the noise.

So, what has actually changed?

The Fair Work Act now defines a casual employee more clearly. From August, a worker can only be classified as casual if:

• There is no firm advance commitment to ongoing, regular work

• They receive casual loading or a clearly identifiable casual rate

• Both parties agree that the work is casual at the time of engagement

• 
  

What does this mean in real terms?

If someone is working regular hours, on a consistent schedule, and both of you know this is likely to continue - they are probably not casual under the new definition.

Conversion to permanent employment

Casual employees now have a legal right to request permanent employment after 12 months if:

• They have worked a regular pattern of hours for the last 6 months

• Their role is likely to continue

• Their employer cannot justify refusal based on reasonable business grounds

This means you need to be ready to handle these requests—because brushing them off could land you in legal trouble.

Why is this happening?

Because for years, casual employment has lived in a legal grey zone. Employers were unsure. Employees were unsure. Some workers were casual for years, and yet worked like full-timers.

This reform clears up the confusion, protects employees from under-classification, and gives employers firmer footing with the right documentation and practices in place.

What employers need to do (now, not later)

Here is your compliance action list:

Review every casual engagement

Go through your current casual workforce. If someone has been working a predictable roster for months on end, it is time to reassess their classification.

Update contracts and documentation

Make sure your casual contracts clearly outline that the role is casual, that casual loading applies, that there is no ongoing commitment to future work. If your contract templates are outdated, fix them now.

Prepare for conversion requests

Set up a process. Know the timeline. Keep track of tenure. Be ready to review and respond to conversion requests within 21 days, and document the outcome.

Communicate with your casual team

Let your casual employees know about the changes, their rights, and how to initiate a conversion request. Transparency builds trust, and compliance.

What if I get it wrong?

Let us be clear, if a casual worker challenges their classification and you are found to be in breach, you could be liable for:

• Backpay of leave entitlements

• Penalties for misclassification

• Legal costs and reputational damage

This is not a space to cut corners or rely on old templates.

This is not about losing flexibility. It is about using casual employment properly - the way it was always intended: short-term, flexible, and genuinely non-ongoing.

At HRxP, we help smart business owners get compliant, stay protected, and do right by their people without the stress of doing it all themselves.

Need help reviewing your casual workforce or contracts? We are ready when you are.