Casual workers have always been an important part of the workforce.
Many businesses rely on employing casual staff to handle seasonal changes in their trading and perhaps filling in for permanent staff whilst they are away, or for unplanned demand for business services. Casual workers offer employers flexibility in their workforce.
Great business managers work to create healthy culture, so that if and when needed, casual workers can easily fit into a team seamlessly, to maintain good productivity.
Employment legislation is complex and constantly changing. When employing a casual, remember that you need to give them a ‘pack’ of documents such as Personal details Form, Tax File Declaration Form, Superannuation details form plus the current Casual Employment Information Statement. You do not have to have an employment contract for casuals although some businesses do.
The government has been making changes to casual employment. During covid, casual employees were found to be the most vulnerable to loss of income continuity and loss of employment.
A casual staff member is one whose hours are not systematic, for example, they do not work the same days and the same hours every week. Other factors defining casual employment are:
- whether the employee has been given any commitment to the work continuing into the future,
- plus looking at the actual job itself and the true nature of the employment relationship.
- It is possible the employee cannot offer any more work to the employee.
- A casual employee has the choice whether to accept or reject work.
- It might be reasonably likely there will be future work available in the employer’s business, but how much work is available may not be known.
Casual employees do not receive annual and personal/carer’s leave accrual.
They do receive a casual loading or specific casual pay rate.
On 26th August 2024 changes will come into effect that allow for casual employees to request to change to permanent employees if they are eligible.
Employees who start as a casual, will stay casual until their employment status changes either through;
- the fact that they have been working for the business for at least 6 months (or 12 months if working for a small business employer)
- their working days and hours becoming systematic
- their role becoming more a part of the permanent work needed
The employee must notify the employer of their request in writing.
The employer must respond in writing to the employee either accepting or refusing the change.
If you are converting an employee from casual to permanent part time or full time, you need to speak to the employee and notify them of the change.
You must notify the employee in writing of the change and include information about whether the new employment is full time or part time, the employee’s new hours of work, and when the change will take effect.
An employer may refuse if an employee still fits the definition of a casual employee.
As mentioned above, the Casual Employment Information Statement (CEIS) is a document with information about employment conditions that an employer must provide to all new casual employees.
The CEIS will now need to be provided to; new casual employees before, or as soon as possible after, the start of their employment and at least annually throughout their employment.
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