A recent Fair Work Commission decision has highlighted an important risk for employers managing casual employees.
The case involved a casual employee whose regular and systematic hours were significantly reduced. While their employment had not formally ended, the reduction left them with only minimal shifts compared to what they had previously worked. The employee argued that the change effectively ended their regular employment, and the Fair Work Commission agreed.
The Commission found that the reduction in hours amounted to a dismissal and that the dismissal was unfair because the employee was not consulted, given an opportunity to respond, or provided with a fair process before the change was implemented.
The decision is a great reminder that casual employees who work regular and ongoing hours may still have access to unfair dismissal protections, particularly where changes fundamentally alter the employment relationship.
For employers, the key lesson is that significant changes to working arrangements should not be treated as purely operational decisions. Even where a worker is engaged as a casual, reducing hours without consultation can create unexpected legal risk.
To reduce risk when making changes to casual employees’ hours:
- Consider whether the employee works regular and systematic hours.
- Communicate proposed changes before decisions are finalised.
- Consult with the employee and provide an opportunity to respond.
- Document the business reasons supporting the change.
- Ensure a fair process is followed before implementing significant reductions in hours.
If you’re considering reducing an employee’s hours and are unsure of the risks, our team can help you navigate the change and ensure an appropriate process is followed. Contact us on (08) 9316 9896 or get in touch.
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