Are you aware of your employer obligations with issuing the Casual Employment Information Statement? Overlooking it could cost you…
From 26 August 2024, a raft of changes to casual employment came into effect under the Closing Loopholes Bill. These changes are some of the most significant to casual employment in recent time, with harsh penalties on the line for non-compliance.
One of the changes now in effect relates to the Casual Employment Information Statement (CEIS) and how employers issue this to their casual workforce.
We’re breaking down what you need to know about these changes and the importance of the CEIS so you can have confidence you’re managing your casual employees compliantly.
Disclaimer: The information in this factsheet is current as at 26 August 2024, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.
What is the Casual Employment Information Statement?
The Casual Employment Information Statement is a document that outlines the conditions of employment for casual employees.
It sets out details that casual employees need to be aware of, as well as their entitlements and responsibilities, including:
- The new definition of a casual employee, effective from 26 August 2024.
- The process of how a casual employee can notify their employer that they would like to make the switch to permanent employment within the business.
- A list of reasons why an employer may not accept an employee’s notice of intent to move to permanent employment.
- Details about the Fair Work Commission and how they assist with disputes.
Take a look at the Casual Employment Information Statement.
What type of employees are required to receive the Casual Employment Information Statement?
All casual employees are required to receive a copy of the CEIS. Employers must issue it at specific times throughout their employment, which we’ll cover in more detail later on.
According to the CEIS itself, it outlines a true casual employee as someone who has:Â
- No firm advance commitment to ongoing work, taking into account a number of factors, including the real substance and true nature of the employment relationship; and
- An entitlement to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.
The practical reality and true nature of the employment relationship needs to be considered within these terms, and not just what is in the employment contract.
It’s also important to be aware that employees who start as a casual will stay casual until their employment status changes, which can be through either one of two ways:
- Through the casual conversion process set out in the Fair Work Act, or
- Accepting an alternative employment offer made outside of the casual conversion process and starting work on that basis.
Please note: If a casual employee started before 26 August 2024 and were classified as a casual then, they are still classified as a casual under the new definition.
When do you need to issue the Casual Employment Information Statement?
Employers must give casual employees a Casual Employment Information Statement before or as soon as possible after they start employment, as well as again after:
- 12 months of employment for casual employees of small businesses (fewer than 15 employees)
- 6 months of employment, 12 months of employment, and every subsequent period of 12 months of employment for casual employees of non-small businesses ( 15 or more employees).
What happens if you don’t issue the Casual Employment Information Statement at the correct times?
If an employer fails to provide the CEIS to their casual employees at the correct times listed above, the penalties for non-compliance can be severe.
If a small business does not issue the CEIS correctly for each employee, they can receive a penalty of up to $93,900 penalty per breach (although maximum penalties are rare). Maximum penalties for larger businesses are even greater. This can have devastating consequences for SMEs if multiple breaches occur.
How can you issue the Casual Employment Information Statement?
According to the Fair Work website, you can issue the CEIS to your casual employees via different ways including:
- in person
- by mail
- by email
- by emailing a link to this page of the Fair Work website
- by emailing a link to a copy of the CEIS available on the Fair Work employer’s intranet
- by fax
- by another method
Employers must make sure that the version of the CEIS they issue to their casual employees is the latest version. The best way to ensure you’re issuing the latest version is to check the Fair Work website at the time you issue the statement.
Employment Hero makes issuing your team with the Casual Employment Information Statement easy
Without the use of a powerful employment platform, issuing these documents at the required intervals can turn into an administrative nightmare – especially if you have a workforce made up of primarily casual employees.
That’s why we’ve automated this process in Employment Hero, meaning the CEIS now has the capability to be sent out at the required times listed above automatically. Admins will receive a notification at the 6 and 12 month mark of the employees casual employment, asking them if they want to re-issue the CEIS. Once the Admin confirms, the employee will be notified. This means that your records are all kept in one place with exact timestamps for issuing.
The wrap up
This is just one of the many employment law changes that employers need to be across in the Closing Loopholes Bill. If you’d like to see how Employment Hero can help your business adapt to these updates, we’ve put together a handy blog.
If you need more assistance, why not look into our HR advisory service? They can provide you with everything you need to boost your compliance confidence.
And lastly, if you’re looking for powerful HR and payroll software that’s purpose-built to handle these changes with ease, you can book in time for a demo with one of our employment specialists.
