The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 brings significant changes to the definition of ‘casual employee’ under the Fair Work Act 2009. These amendments focus on the real work conditions rather than just the employment contract, offering better protection for casual workers.
What Has Changed?
1. A fair, objective definition of a casual employee
The Act defines a casual employee as someone without a definite promise of ongoing work. It now takes into account the practical aspects of the job, such as:
- Whether the employer can decide to offer work
- Whether the employee can accept or refuse work
- The chances of work being available
- Whether similar jobs are done by part-time or full-time workers
2. One clear and simple pathway to permanency
The Act introduces a single pathway for casual employees to transition to permanent employment. Employees who have worked for at least six months (or 12 months in a small business) can notify their employer if they believe they no longer meet the casual definition. Employers have 21 days to respond, either converting the employee to permanent status or providing valid reasons for refusal.
What Do These Changes Mean?
These changes empower employees to choose their employment status. If a casual employee wants to transition to permanent work, they can initiate the process. For those working like permanent employees, this offers a clear route to secure job entitlements and paid leave. However, casual employees can retain their casual status if they don’t want to convert. These amendments will provide certainty for both employers and employees about their rights and obligations.
When will these changes be effective?
The new measures will take effect on 26 August 2024.
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