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New Casual Employment Rules: What You Need to Know

On 26 August 2024, the definition of casual employment is changing. The “Closing the Loopholes” bill changes casual employment to focus on actual work patterns, not just job titles. If an employee works regular hours, they may need to be classified as permanent, not casual. These changes aim to give casual workers more job security and benefits. Expected to become law later this year, businesses should review their employee arrangements now to comply with the new rules. 

Recently, the Australian government has proposed changes to employment laws in the “Closing the Loopholes” bill, significantly altering the definition of casual employment. Here’s what you need to know about these changes and how they may affect your business.

What is Changing?

The new bill redefines what it means to be a casual employee. Previously, a casual worker was someone with irregular hours and no long-term job commitment. The new definition focuses on the actual working relationship, not just the job title.

Substance Over Form

• Substance over form: means that the Fair Work Commission will look at the actual nature of the working relationship rather than just the job title or what is stated in the contract. Practically, this involves examining:
• Work Patterns: Are the hours regular and predictable?
• Job Expectations: Is there an ongoing expectation of work?
• Employment Arrangements: Are the work schedules set in advance, indicating a permanent job rather than casual?

Why Does This Matter?

 For employers, this means:

• Reviewing current employee statuses to ensure they meet the new criteria for casual employment.
• Possibly converting some casual employees to permanent positions if they work regular, predictable hours.
• Keeping detailed records to show compliance with the new rules.

Benefits for Employees
The changes are designed to protect workers from being stuck in casual roles indefinitely. Employees working regular hours can request to become permanent, gaining job security and benefits like paid leave and notice of termination.

How to Prepare

Businesses need to:

• Stay informed about the new laws.
• Review and update employment contracts.
• Consider consulting HR experts, like People Partners, to ensure compliance and smooth transitions.

The new definition of casual employment aims to make work more secure and fair for employees, while presenting new challenges for employers. By understanding these changes and preparing accordingly, businesses can ensure they remain compliant and foster a better work environment.

For more guidance on how these changes might affect your business, contact People Partners, your local HR consulting experts.