Significant updates to casual employment laws will take effect on 26 August 2024, altering the definition of casual employees, the transition process to permanent roles, and employer responsibilities.
Under the revised Fair Work Act, a casual employee is defined as someone without a firm commitment to ongoing work at the start of their employment. Key factors in determining casual status include the nature of the employment relationship, the employer’s ability to provide work, and consistent work patterns.
For casual employees hired before the new regulations, their status remains unchanged unless they choose to transition to permanent employment. New hires from 26 August 2024 will have a formal conversion process to become permanent.
Employers must provide a Casual Employment Information Statement to all casual employees, detailing their rights and conditions. The law also addresses sham arrangements, making it illegal for employers to misclassify employees to avoid entitlements, with penalties up to $93,900 for individuals and $469,500 for businesses.
