The introduction of the casual conversion clause will affect the rights and obligations of employers who employ casual people who work on a regular and systematic basis. Please note that this may not be relevant to all current and future employees, and you are encouraged to consult with the relevant awards before providing the conversion clause letter.

The model clause incorporates a requirement that all casual employees subject to the awards are to be given a copy of the clause during the first 12 months of the employee’s term of engagement with the employer.

The casual conversion clause allows a casual worker to become a part-time or full-time employee if:

  • a qualifying period of 12 calendar months is met;
  • the casual employee must have engaged in work with a pattern of hours on an ongoing basis over the required 12 month interval, which may continue to be worked on a full-time or part-time basis without the need for significant adjustment.

The changes took effect from the first full pay interval on or after 1 October 2018.

Important Points

  • The clause does not require the employer to offer permanent employment.
  • The clause outlines that the employer does not have to agree with the request, as long as they have reasonable grounds to do so.

Reasonable grounds include if:

  • a significant change of hours is required to engage casual employee as a part-time or full-time employee.
  • it is reasonably foreseeable that the employee’s position will not be available in 12 months.
  • the employee’s hours are likely to change or reduce significantly over the next 12 months.

What Employers Need to Do

  • Provide a copy of the new clause to your casual employees employed as at 1st October 2018, by 1st January 2019.
  • The employer to provide a copy of the new clause to all casual employees employed on or after 1st October 2018, within 12 months of their employment commencing.

What Employees Need to Do

  • The casual employee to put their request in writing if they want to be considered for a permanent part-time or full-time position.
  • The employer is to respond in writing to the casual employee within 21 days of receiving the request. If refusing, need to state reason why.