iscover
There is unlikely to be a wave of requests from employees to convert to permanent employment under newly enacted laws, an employment lawyer has suggested.
Late last month, the Fair Work Act’s new “employee choice pathway” – through which casual employees in businesses with more than 15 employees may submit a request for conversion to permanent employment – came into effect.
However, in conversation with HR Leader, Legalite head of employment law and workplace relations Natasha Hannah (pictured) said an “influx” of casual conversion requests is unlikely.
“Most employers I work with, including those that engage large casual cohorts, tell me that casual employees enjoy the flexibility and higher pay rates associated with being employed casually,” she said.
Casual conversion was enshrined in the Fair Work Act in 2021, Hannah pointed out; since then, there “just hasn’t been the take up the union movement made a lot of noise about”.
Of course, she noted, secure employment is a basic right, adding that she welcomes the casual employment reforms that have been enacted in recent years.
It is important, she stressed, “that casual employees are protected from exploitation”.
“In my view, the reforms have served to educate employers, especially larger ones, to ensure rigorous processes are in place to monitor their casual workforce,” she said.
The shift in responsibility, Hannah continued, for initiating conversion from employers to employees is appropriate.
“This change empowers casual workers to take control of their employment status, if that’s what they want,” she said.
Moving forward, casual employees who have been employed for six months and who “believe” they no longer meet the definition of a “casual employee” under the law can make a request for conversion to permanent employment.
The term “believes”, Hannah explained, is expected to be interpreted broadly and does not require the same “reasonable belief” standard applied in other areas of the Fair Work Act.
If businesses have not already done so, she advised, they must: “Establish a process for managing casual conversion requests (including creating evidentiary records of written and verbal communications), and train and upskill staff who will handle requests for conversion about the legal requirements (e.g., your HR partners, payroll, and frontline managers),” she said.
For small-business employers, Hannah said, the employee choice pathway will commence on 26 August 2025.
