New Pathway for Casual Conversion – Applicable from February 2025

The Employee Choice Pathway is a new process for casual employees in Australia to request conversion to permanent employment (full-time or part-time). This is set to come into effect as part of amendments to the Fair Work Act 2009 with specific timelines depending on the size of the employer:
Key dates

• For most employers: the pathway begins on 25 February 2025
• For small businesses (fewer than 15 employees): It starts on 26 August 2025

Effective from 26 August 2024, casual employment refers to a work arrangement where employees are typically engaged on an as-needed basis without a firm commitment to ongoing work and are entitled to a casual loading or specific casual pay rate under an award, registered agreement or employment contract. 

Casual employees are eligible to apply for permanent employment if they meet the following criteria:

1. Employment duration
        a. for employers with 15 or more employees. Must have worked for at least six months
        b. for small employers (fewer than 15 employees). Must have worked for at least 12 months
2. Change in casual status – employees must believe their work arrangements no longer fit the definition of a casual employee. Specifically:
        a. they have a predictable work schedule
        b. their ongoing work arrangement is regular and systematic

Employees and employers are required to engage in a structured process, ensuring fair consideration for such requests to convert to permanent employment such as:

• Initiating a request
       - the employee provides a written notice to their employer requesting a shift to permanent status
• Employer’s obligation to respond
      - the employer must respond in writing within 21 days
      - they can either accept or refuse the request
• Refusal grounds – employers can refuse the request if:
      - the employee continues to meet the definition of a casual employee
      - operational reasons make the conversion impractical (eg uncertainty about ongoing work or financial impact on the business)
      - the change would breach laws or agreement applicable to the workplace
• Consultation requirement
      - employers must discuss the decision with the employee before responding

Until the new pathway comes into effect, you must comply with the current casual conversion processes.

Do you need any assistance in navigating this process? Reach out to the Workplace Relations Team on 07 3872 2264 or email us at workplacerelations@amaq.com.au