Casual Staff Can Now Choose to Go Permanent
Casual employment rules changed in a big way. Small businesses have only had to comply since August 2025.
If you employ casual staff, this affects you directly. Here is exactly what changed and what to check.
The Old Rule vs the New Rule
The old system put the employer in charge. After a set period, you had to offer conversion to eligible casuals.
The new system flips this around. It is now called the Employee Choice Pathway. The casual employee decides if and when to ask.
You no longer have to make the first move. They do.
What Counts as a Casual Now
This is the part many employers miss. The legal test changed too.
A worker is only a true casual if there is no firm commitment to ongoing work. They must also genuinely have the irregular, flexible pattern that casual work implies.
What matters is the real pattern of work. Not just what the contract says. A “casual” working the same set shifts every week for a year may not meet the legal definition anymore.
When Can a Casual Ask to Convert
A casual employee can give written notice asking to convert. They need six months of service first.
For a small business, that period is twelve months instead of six. This gives smaller employers a bit more time to assess the situation.
The employee must also believe they no longer meet the casual definition. If they genuinely have a regular pattern and ongoing work, they likely qualify.
What You Must Do When a Request Comes In
You cannot simply ignore a conversion request. There are response rules and timeframes you must follow.
You can refuse, but only for genuine business reasons. A refusal without a real reason can put you in breach of the Fair Work Act.
Document your reasoning clearly if you do refuse. This protects your business if the decision is ever challenged.
Why This Matters Beyond Just Paperwork
Getting a casual’s true status wrong creates risk well beyond one conversion request.
A worker who is genuinely an employee, despite a casual label, may be owed backdated leave and other entitlements. This connects directly to broader underpayment risk.
A regular review of your casual workforce protects you on both fronts. Correct classification now, and correct response to any request later.
A Quick Audit Worth Doing This Week
Look at every casual employee on your books. Check how long they have worked for you and how regular their hours actually are.
Flag anyone working a consistent pattern for an extended period. These are the staff most likely to have a genuine right to request conversion.
Update your contracts and rosters where the real pattern has shifted from genuinely casual to effectively regular.
What to Do Now
Review every casual employee’s actual work pattern, not just their contract label.
Know your response deadlines if a conversion request arrives. Late or unclear responses create risk.
Document genuine business reasons for any refusal, in writing, at the time you make the decision.
Update your onboarding paperwork to reflect the current Casual Employment Information Statement requirements.
Frequently Asked Questions
Do I still have to offer conversion automatically? No. Under the new pathway, the employee requests it. You no longer have an automatic obligation to offer first.
Can I refuse a conversion request? Yes, but only for genuine business reasons. A refusal without proper grounds can be challenged.
How long must a casual work before they can ask? Six months for most employers. Twelve months if you are a small business.
Get Your Casual Workforce Reviewed Talk to Edulink
Worker classification sits at the center of payroll risk. A quick review now is far easier than a dispute later.
Edulink Payroll Services manages payroll and compliance for small and medium businesses across greater Sydney and Campbelltown, with pricing from $750 per employee, per year.
Have more employees? Call us for a discounted rate.
📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
Leave a Reply