Casual employees – Fair Work changes as of 26 August 2024

As part of the Fair Work ‘Closing Loopholes’ reform, the definition of a casual employee was updated. In summary:

Pre-26 August 2024, a person was a casual employee if:

-              the employee was offered a job that didn’t include a firm advance commitment that the work would continue indefinitely with an agreed pattern of work; and

-              they accepted the offer knowing that there was no firm advance commitment when they became an employee.

Post 26 August – a person is a casual employee if

-              the employment relationship has no firm advance commitment to ongoing work, taking into account a number of factors (see below); and

-              they’re entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.

‘No firm advance commitment’ is assessed on whether it is truly practical that the employment relationship is casual and other factors which could include:

-              Will the employee be offered work in times when the business needs them to work?

-              Does the employee have discretion to choose to work or not work a shift the employer offers them?

-              Is the employment actually described as casual in their contract?

-              Is there a currently a systematic pattern of work and is there are a likelihood that there is an expectation of ongoing work?

-              Will the employee be paid a loading for being a casual employee?

-              Are there are full-time or part-time employees performing the same kind of work in the employer’s business as the work the employee usually performs

** Please note that Fair Work suggest that not all factors need to be satisfied and a single factor won’t determine whether a person can be considered a casual or not.