Reminder to Staff and Referrers

As you may recall, the Fair Work Ombudsman’s (FWO) Closing Loopholes Legislation introduced changes to employee entitlements in 2024. One of the key updates allows casual employees to request a transition to full-time or part-time employment under the Employee Choice Pathway.

New Definition of Casual Employment

The Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 provides a clear definition of casual employment. Under this Act, an individual is considered a casual employee if:

• The employer offers a job without a firm advance commitment to ongoing work with an agreed pattern of hours.
• The employee accepts the offer knowing there is no such commitment.
• The employment continues on this basis.

Key Changes Effective 26 February 2025

From 26 February 2025, eligible casual employees can submit a written notice to their employer requesting a transition to full-time or part-time employment under the Employee Choice Pathway. Employers can only refuse the request for specific reasons.

The Fair Work Ombudsman (FWO) has provided templates to assist with this process.

Who Can Apply?

Casual employees are eligible to apply if they:

• Have been employed for at least six months (12 months for small businesses with fewer than 15 employees).
• Believe they no longer meet the definition of a casual employee.

When Can Employees Apply for a Change?

• If employed on or after 26 August 2024:
– From 26 February 2025 (or 26 August 2025 for small businesses).

• If employed before 26 August 2024:
– Refer to the FWO website for specific guidelines.

Employer Response Time

Employers must respond in writing within 21 days of receiving the request, either accepting or refusing the request with detailed reasons.

Acceptable Reasons for Refusal

An employer may refuse the request if:

• The employee still meets the definition of a casual employee.

• There are fair and reasonable operational grounds, such as:
– Significant changes would be required to the way work is organised.
– The transition would have a substantial impact on business operations.
– Major adjustments to employment conditions would be necessary to comply with relevant laws, awards, or agreements.

• The employer is legally required to follow a recruitment or selection process that prevents automatic transition.

For further details, refer to the FWO website – https://www.fairwork.gov.au/

by Henry Kwok
February 2025