What’s in the Ultimate Guide to Understanding the Casual Conversion Process?

Under the Government’s Closing Loopholes reforms, introduced through the Fair Work Amendment (Closing Loopholes) Bill 2023 and the Fair Work Amendment (Closing Loopholes No.2) Bill 2023, there have been significant reforms made to the law regarding casual employment which came into effect from 26 August 2024.

This guide goes into more detail about the new process for “casual conversion” to permanent employment (which replaces the previous rules operating in this area).

What was the previous casual conversion process?

Under the previous rules, non-small business employers had to proactively offer the opportunity to convert to permanent employment to certain casual employees after they had been employed for 12 months’ employment.

Employees of small businesses had the right to request to convert after 12 months, but didn’t have to be proactively offered conversion.

What’s the casual conversion process now?

From 26 August 2024, casual employees have the right to notify their employers in writing that they wish to change to permanent employment. They get this right after 6 months employment in non-small businesses, and after 12 months’ employment in small businesses.

There is no longer an obligation on employers to proactively offer conversion, rather the onus is placed on employees to request conversion. This new process is called the “Employee Choice Pathway”.

What will this guide cover?

• The new process for casual conversion
• Important details about the Employee Choice Pathway 
• The new definition of casual employee
• How to respond to a notification to convert

Looking for more information? Learn more in our Changes to Casual Employment Factsheet.

Disclaimer: The information in this guide is current as at 17 December 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 guide 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 guide. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this guide.