Casual Conversion

The National Employment Standards (NES) provide casual employees with a pathway to becoming permanent employees. This is known as ‘casual conversion’.

Employers are required to offer casual employees who have worked for them for a minimum of 12 months the option to convert to permanent (full-time or part-time) employment.

A small business employer with fewer than 15 employees at any particular time does not have to offer to convert casual employees to permanent employment. However, they are required to review an employee’s contract if the employee requests it.

Employers are required to make a written offer to convert their casual employee to permanent employment within 21 days after the 12 month anniversary if the employee i.e.:

• Has been employed by the employer for a minimum of 12 months
• Has worked a regular pattern of hours on an ongoing basis for at least the last six months
• Will continue working these hours as a full-time or part-time employee without significant changes

We recommend reviewing anniversary dates of casual employees regularly using CloudPayroll’s Length of Service report under HR. All documents regarding offer and outcome can be uploaded as employee documents in CloudPayroll for storage and access.

If your employee changes from casual to permanent it is important when adding annual leave and sick leave accruals into the employee template to add the override start date. This will ensure that their leave will accrue from their conversation date rather than their start date.

If you want to find out more about how CloudPayroll can help your business please contact us on sales@cloudpayroll.com.au or phone 02 9042 2689.