Each casual employee who has been employed for at least 12 months must be offered a permanent position or given a written explanation as to why they haven’t been offered permanency. Casual conversion needs to be offered if the following criteria are met:
- The employee has been employed for more than 12 months.
- The employee has worked a regular pattern of hours on an ongoing basis for at least the last 6 months, and the employer could continue the employee’s regular pattern of hours as a permanent employee without significant changes.
Your employer doesn’t have to offer casual conversion if one of the following applies:
- There are reasonable grounds for not offering casual conversion.
- There has been no regular pattern of hours for at least the last 6 months.
The Fair Work Casual Employment Information Statement defines what counts as “Reasonable Grounds” and provides an example of a “regular pattern of hours.”
What are “reasonable grounds”? The definition of “reasonable grounds” will depend on your circumstances and your employer’s circumstances. They can include the following within the next 12 months:
- The employee’s position won’t exist.
- The employee’s hours of work will significantly reduce.
- The days or times the employer needs the employee to work will change significantly, and the employee won’t be available to work the revised schedule.
Reasonable grounds can also include the fact that making the offer or granting the request would not comply with a recruitment or selection process required by or under a Commonwealth, State, or Territory law.
Example of a “regular pattern of hours”: Alex is a casual employee who works every Friday and Saturday night at a restaurant on a regular basis. His hours and days don’t change. Over a 6-month period, Alex misses 2 shifts due to illness. By agreement with his employer, he also takes 1 week off during university exams. Even though Alex has taken some time off, this still meets the definition of a “regular pattern of hours.”
For small employers (less than 15 employees), casual conversion does not have to be offered, but it can be requested by the employee.
Here is the link to the Casual Employment Information Statement provided by Fair Work: www.fairwork.gov.au/sites/default/files/migration/724/casual-employment-information-statement.pdf