Earn
Government defines casual work – but what does it mean for you?
While much of the government’s industrial relations reforms failed to please the Senate, the Morrison government was successful in seeing through the definition of a casual employee for the first time in history.
Government defines casual work – but what does it mean for you?
While much of the government’s industrial relations reforms failed to please the Senate, the Morrison government was successful in seeing through the definition of a casual employee for the first time in history.
The controversial IR Omnibus Bill was introduced to Parliament in December last year, containing provisions regarding casual work, wage theft, award simplification, enterprise bargaining and greenfield agreements.
The final bill passed both houses of Parliament last week, in a revised and significantly reduced form, and while it has been critiqued as a failure on many front, the bill did manage to introduce a definition of casual employment into the Fair Work Act 2009 for the first time.
“While key aspects of the bill were jettisoned last week, the passing of the bill remains a landmark development as it reforms a substantial and often problematic feature of the industrial relations system – casual employment,” managing director at Australian Business Lawyers and Advisers, Luis Izzo, said.
Casuals defined for the first time
The measures to define a casual staff member were introduced following a Federal Court case last year, which ruled that casual employees working regular and systematic hours with “predictable periods of working time” are entitled to personal leave, compassionate leave and public holiday payments.
The court ruled that regardless of what their contract says and regardless of the payment of a casual loading, casuals are likely to be considered permanent employees based on their nature of work.
Conventional wisdom has been that casuals do not accrue annual leave entitlements, because the casual loading sees them effectively paid a higher hourly rate in lieu of such accrued entitlements.
- offered employment without a “firm advanced commitment to continuing and indefinite work”; and
- the person accepts that offer,
then the person is a casual employee regardless of any changes in the employment relationship.
“That is, the assessment of whether a person is a casual occurs on the basis of the offer of employment, not on the basis of any subsequent conduct of the parties,” Mr Izzo explained.
Right to casual conversion
Another key aspect of the changing casual environment is the inclusion of casual conversion mechanisms, which will allow for the easier transition from temporary to permanent work.
“The offer must be to convert to either full-time employment (where the casual has worked the equivalent of full-time hours) or part-time employment consistent with the casual’s regular pattern of hours (where the casual has worked the equivalent of part-time hours),” Mr Izzo explained.
Employers must offer to convert a casual employee to permanent employment if the employee:
- has been employed for 12 months; and
- during the last six months, has worked a regular and systematic pattern of hours without significant adjustment.
Casual loading offset created
Mr Izzo also explained that the changing definition of a casual worker will help deal with the historical problem of workers being misclassified as casuals, which saw them miss out on accrued leave entitlements.
“Where an employee is found to have been incorrectly engaged as a casual (that is, they are at law a permanent employee), the bill creates an express right for employers to offset any leave entitlements owed to the employee against the casual loading that is often paid to the casual employees,” Mr Izzo said.
What should employers do next
According to the industrial relations lawyer, for employers these changes mean it could be time to "clean the house" in terms of the arrangements and instruments that business owners have in place governing casual employment.
Employers are advised to look at:
- introducing new casual contracts that align with the recent amendments; and
- introducing processes for dealing with casual conversion that ensure the employer’s operational requirements are considered whilst simultaneously ensuring compliance with the FW Act.
“For some businesses, it might also be time to reassess your workforce mix and labour strategies to determine whether your existing arrangements can be optimised having regard to the changed regulatory landscape,” Mr Izzo concluded.
About the author
About the author
Salary
Why a salary bump is not a now-or-never scenario
After a decade of low inflation and low wage growth, the bargaining power workers have to negotiate better conditions are starting to grow, but whether or not it leads to stronger wages remains to be ...Read more
Salary
Treasurer to reassess COVID payments as 1m Aussies are locked out, but JobKeeper is ruled out
With over 1 million Australians currently in lockdown without additional support, the Treasurer has conceded he will assess the current payment packages, but has blatantly refused to yield to pressur...Read more
Salary
Apply to me directly: ANZ boss
Following a call to get older Aussies back into the workforce, ANZ boss has gone a step further telling potential workers they should apply directly to him. ...Read more
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
Salary
Unemployment falls to decade low
Australia’s unemployment rate has fallen below 5 per cent for the first time in over a decade, official figures have revealed. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Salary
Why a salary bump is not a now-or-never scenario
After a decade of low inflation and low wage growth, the bargaining power workers have to negotiate better conditions are starting to grow, but whether or not it leads to stronger wages remains to be ...Read more
Salary
Treasurer to reassess COVID payments as 1m Aussies are locked out, but JobKeeper is ruled out
With over 1 million Australians currently in lockdown without additional support, the Treasurer has conceded he will assess the current payment packages, but has blatantly refused to yield to pressur...Read more
Salary
Apply to me directly: ANZ boss
Following a call to get older Aussies back into the workforce, ANZ boss has gone a step further telling potential workers they should apply directly to him. ...Read more
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
Salary
Unemployment falls to decade low
Australia’s unemployment rate has fallen below 5 per cent for the first time in over a decade, official figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
