What are the key timelines for casual conversion?

Following on from our earlier advice regarding the new casual conversion laws, we provide the following reminder for those currently undertaking workforce planning.

Who is eligible?

Large employers must offer casual conversion to employees who:

1. have worked for them for 12 months;

2. have worked a regular pattern of hours for at least the last 6 of those months on an ongoing basis; and

3. can continue working those hours as a permanent employee without significant change.

What are the timeframes?

Significantly, there is a Transition Period (*27 March –26 September 2021) so prior to 27 September 2021 large employers are only required to assess whether to offer conversion to any employee who was, or may have been a casual employee immediately before 27 March 2021. Large employers are not required to make an offer for conversion during the transition period (ie up to 26 September 2021).

If by 27 September 2021 a large employer won’t be offering casual conversion they must notify the employee of this in writing.If an offer is going to be made the large employer then has 21 days of completing the assessment to convert their casual employee to permanent.During the transition period the timing of the conversion requirements are referenced to the date the assessment is made.

Eligible existing casuals working for large employers can request to convert from 27 September 2021. *NB that there is the primary ‘reverse obligation’ (compared to casual conversion under Modern Award) for employers to make the offer. The residual right for employees to request casual conversion does not apply in the transition period.

After the Transition Period large employers only need to offer casual employees conversion after every 12 months of employment.*NB the notification is personal and should not be made to a group of casuals.We recommend setting 12-monthly reminders for each employee, which will allow you to forget about casual conversion in the meantime.

Refusal

Much like refusing flexible working arrangements, employers can opt not to make a casual conversion offer (provided notice is given within 21 days of the 12 month anniversary) if:

1. an employee is not eligible; or

2. it otherwise refuses a request on Reasonable Business Grounds.

Reasonable Business Grounds include, for example, that:

1. the employee’s position will cease to exist in the period of 12 months after the time of deciding not to make the offer;

2. the hours of work which the employee is required to perform will be significantly reduced in that period;

3. there will be a significant change in either or both of the following in that period:

   1. the days on which the employee’s hours of work are required to be performed;

   2. the times at which the employee’s hours of work are required to be performed;which cannot be accommodated within the days or times the employee is available to work during that period

If an employee refuses an offer to convert, they will lose the right to request casual conversion for six months.

Stay tuned for some ‘template documents’ regarding this issue.