ADA HR FEATURE
Casual Conversion
Update and Reminder
In March 2021, the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2021 (Bill) passed Parliament. The Bill introduced several changes to casual employment, including providing a statutory mechanism for casual conversion. Prior to these changes, there was no universal entitlement to casual conversion, rather, employees covered by a modern award (such as the Health Professionals and Support Services Award 2020) (HPSS Award) were able to request casual conversion if they met the eligibility criteria outlined in the award. Now, the Fair Work Act 2009 (FW Act) requires employers to proactively offer casual conversion to eligible employees. This applies to all employees in the practice, not just those covered by a modern award. There is a transitional period, which ends on 27 September, to allow employers time to make assessments as to whether they need to offer casual conversion. Practices must therefore determine who is eligible, and make offers of conversion prior to this date.
Who needs to make an offer?
Who is an eligible employee?
The changes apply to national system employers, which are those that fall under the national workplace relations laws. Practices operating as sole traders, unincorporated partnerships, unincorporated trusts and incorporated associations that are not trading or financial corporations in Western Australia are covered by the Western Australia State System instead, and are therefore not covered by the changes implemented in the Bill.
The Bill defines an eligible employee as someone who: • has been employed by the employer for a period of 12 months beginning the day the employment started; and • during at least the last 6 months of that period, the employee has worked a regular pattern of hours on an ongoing basis which, without significant adjustment, the employee could continue to work as a fulltime employee or a parttime employee (as the case may be).
Small businesses, meaning practices with fewer than 15 employees, are also excluded from needing to make an offer. Employees employed in a small business retain the right to request casual conversion, however the administrative burden of having to actively offer conversion is removed.
If employees meet the above criteria, an offer of casual conversion must be made within 21 days of the employee reaching their 12 month anniversary, unless an exemption applies.
Practices with 15 or more employees are required to make offers of casual conversion to eligible employees.
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EDITION 6 | 2021 Western Articulator
For further information or assistance with leave entitlements in your practice, please do not hesitate to contact the ADA HR Advisory Service on 1300 232 462.
