In this article
If you employ casuals, there is a new pathway your people can use to move to permanent work, and a process you have to follow when they do.
The casual employee choice pathway has replaced the old casual conversion rules. Here is who can use it, how to respond, and the timeframes that apply.
Key takeaways
- The pathway lets eligible casuals give written notice that they want to move to permanent employment.
- It applies from 26 February 2025, and from 26 August 2025 for small business employers.
- Someone is only a casual under the section 15A definition if there is no firm advance commitment to continuing and indefinite work.
- You must consult, respond in writing within 21 days, and can only reject on limited grounds.
What the pathway is
The casual employee choice pathway is part of the National Employment Standards (Part 2-2 Division 4A of the Fair Work Act). It helps casual national system employees move to permanent employment.
Who can give a casual choice notice
A casual can give written notice if they have been employed for at least 6 months (12 months for a small business employer) and believe they are no longer a casual under section 15A. They cannot give notice if they are in an ongoing dispute about it, or if in the last 6 months you refused a notice or resolved a dispute about employee choice.
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The new casual definition
From 26 August 2024, someone is only a casual if there is no firm advance commitment to continuing and indefinite work, and they receive a casual loading or specified casual rate. Whether there is a firm advance commitment is assessed on the real substance and practical reality of the relationship, including whether work can be offered and refused, whether ongoing work is likely, whether permanent staff do the same work, and whether there is a regular pattern.
How to respond
You must consult first. To accept, discuss whether the employee will be full-time or part-time, their hours and the start date, then confirm in writing within 21 days. To reject, respond in writing within 21 days, and only on the basis that they are still a casual, that accepting would breach a legally required recruitment or selection process, or that there are fair and reasonable operational grounds, which you must set out.
Fair and reasonable operational grounds
These include that substantial changes to how work is organised would be required, that there would be significant impacts on operations, or that substantial changes to conditions would be reasonably necessary to avoid breaching an award or enterprise agreement.
Frequently asked questions
When did the pathway start?
How long do we have to respond?
Can we reject a notice?
This article is general information, not legal advice. For advice on your situation, ask Lawlux or talk to a Lawlux lawyer.
Dave is Lawlux's Managing Principal and leads the employment and industrial relations practice.
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