Adapting to New Casual Employment Changes: Practical Strategies for Medium-Large Businesses

It’s been just under a month since significant sections of the Closing Loopholes No. 2 Act came into effect. Some businesses have seamlessly adapted, while others are finding it more challenging. If you're still navigating the changes, you're not alone. Below are some strategies and tips to help you smoothly transition into the new requirements.

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Revising Employment Contracts to Reflect New Definitions

One of the key changes businesses must address is updating employment contracts to align with the new definition of casual employment. The new definition applies to all casual employees who commence work on or after the 26 August 2024. Casuals employed before 26 August 2024 will remain casual under the new definition unless they transition to permanent employment.

We recommend revisiting any contract templates or existing versions of casual employment contracts for your business and ensuring the definition has been updated appropriately. 

For Tanda HR customers, access to our HR Legal Contract Templates is included in your subscription. These contracts have been prepared by employment law firm Kingston Reid and have been updated to include the new definition.

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Proactively Address FAQs Before They Arise

Tanda data shows over 85% of junior employees in the system are casuals, most of whom may be in their first jobs and unfamiliar with their rights and entitlements. For the most part, they may be confused why they’re receiving a copy of the Casual Employment Information Statement, when they should receive it, and what they might need to action.

We recommend that HR and management teams provide this information to casual staff members as part of their induction.

Whether it’s through employment handbooks, posters in break rooms, or even resources accessible via the Tanda mobile app, being proactive can quickly clear up any confusion.

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Establishing a Clear Process for Casual-to-Permanent Requests

By February 26th 2025, the new employee choice pathway for casual-to-permanent conversion will be in full effect. Importantly, employers are required to respond to all conversion requests within 21 days. 

Setting up a single channel for handling these requests is essential, ensuring they are dealt with promptly, don’t slip through the cracks and records of responses are available for future reference.

Consider channels like printed templates or Google forms.

For those who are Tanda customers, you can make use of our one-on-one communications feature to collect requests and send responses to staff directly. Tanda HR customers can also use the Forms feature, where a template can be created for staff to submit and an approval workflow created to ensure the right teams are responding to the request.

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Maintaining Records of Casual Employment Information Statement Distribution

Another important requirement is the frequent distribution of the Casual Employment Information Statement (CEIS). Employers must now provide the CEIS not only at the beginning of employment but also:

• After six months
• After 12 months 
• Every subsequent 12 month anniversary

Keeping detailed records of each instance the CEIS is sent to employees is essential. While it’s not a requirement for employees to acknowledge receipt, creating a clear paper trail that records when the statement was provided can help protect your business in case of future disputes. 

This could be done by including an acknowledgement form with a signature and date field when providing staff with the CEIS, or using Tanda’s automatic functionality that sends the CEIS at the required intervals, prompts them to record acknowledgement and records timestamps for all actions.

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Evaluating the Efficiency of Casual vs. Permanent Staff

The new changes allowing casual staff to request conversion to permanent roles also provides a good opportunity to reassess what staffing structure works best for your business. While you cannot compel an employee to convert, it’s important to highlight the benefits of both options.

If permanent staff are more suitable for your business, ensure you communicate the perks, such as paid leave and guaranteed hours. On the other hand, if a more flexible casual workforce is a better fit, emphasise the value of shift flexibility and the casual loading they receive. 

Seasonal trends, such as the demand for Christmas casuals, should be factored into this decision. Using data from platforms like Tanda to assess sales trends, leave patterns, and operational needs can guide you in making the right call.

We’ve prepared a quick comparison of Casual vs Permanent Staff below that could help you evaluate:

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Streamlining Your Responses to Conversion Requests

Employees will soon have the ability to initiate requests for conversion under the new employee choice pathway, but employers maintain the right to decline the requests for if the employee still meets the definition of a casual or if the are fair and reasonable operational grounds. 

To ensure you're handling these requests promptly and in accordance with the 21 day requirement, you can create a checklist tailored to your business to quickly refer to when assessing a request. Whether accepting or rejecting the request, templating responses for both scenarios will not only speed up your internal process but also ensure consistency for all requests.

We’ve created an outline of what a potential checklist should cover below:

1. Track Dates: As soon as you receive a notification of an employee’s intent to convert, keep a record of when you’ve received it and when you must provide a response by. Remember: You must provide a response within 21 days of receiving the notification.
2. Complete the initial review: Verify that staff meet the eligibility criteria specified by the Fair Work Ombudsman:
   1. Have they been employed for at least 6 months (12 months if a small business)?
   2. Do they no longer meet the requirements of the casual employee definition?
   3. Are they currently engaged in an ongoing dispute about changing to permanent employment?
   4. Has the employer refused a previous notice or has a dispute been resolved about changing to permanent employment in the last 6 months?
3. Consult Fair Work where necessary: If you’re unsure of the eligibility of the employee, contact Fair Work for advice
4. Consult with the employee: Before responding to the request, you must consult with the employee about the request.
   • If accepting the request, this consultation should include what the change in employment will entail such as whether the employee will be full time or part time, their hours of work and when the change will take effect. 
   • If you decline the request, you will need to consult with the employee on the reasons as to why you are not accepting the request. 
5. Respond to the request: Provide the employee with a direct response to their request within 21 days of receiving it
6. Update records: Keep track of all the details of the request, including the initial request and your response to refer back to when assessing any future requests. 
7. Send updated employment contract where necessary: If you’re accepting the conversion request, ensure you issue the employee with an updated employment contract outlining their new employment conditions, any regular hours, leave entitlements and more
8. Make changes in your digital systems: If you’re accepting the conversion request, ensure these details are updated in your workforce management and payroll systems.

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Leveraging Fair Work Resources for Additional Support

‍The Fair Work Ombudsman has released numerous resources designed to help businesses understand and implement these new changes. Taking advantage of these tools can ease the transition for your business. By staying subscribed to Fair Work’s updates, you’ll be in a better position to anticipate and plan for future adjustments.