Changes to Casual Employment Laws

From 26 August 2024, there will be a new definition of casual employee. The new definition includes a general rule that an employee is a casual only if:

• there is no firm advance commitment to continuing and indefinite work; and
• they are entitled to a casual loading or a specific rate of pay for casuals under a Fair Work instrument or their employment contract.

When assessing whether an employee has a firm advance commitment to continuing and indefinite work, the employer needs to consider the real substance, practical reality and true nature of the employment relationship.

A firm advance commitment might be found in an employment contract, or a mutual understanding or expectation between the employer and employee.

Specific matters need to be considered when making an overall assessment of whether there is a firm advance commitment to continuing and indefinite work. These include:

• whether the employer can choose to offer or not offer work, and whether the employee can choose to accept or reject work (and whether this actually happens),
• whether it is likely that there will be future continuing work available, considering the nature of the business,
• whether permanent employees perform the same kind of work that the employee usually performs, and
• whether the employee performs a regular pattern of work.

If you have any questions regarding the new casual employment laws, please reach out to our Workplace Relations and Legal Team on 02 6175 5900.