Casual workers

In Australia, there are more than two million workers employed casually.

As a casual employee, your employer is not committed to providing you with regular hours or employing you for any length of time. You are also not required to work a certain amount of time each week.

Casual workers are entitled to some but not all of the benefits that permanent workers are entitled to. It is important to remember that casual workers have the same rights as all workers to join and to be represented by a union.

Union members recently won new laws that offer greater protection to casual workers from exploitation and make it easier for casual workers who want to convert to permanent to do so!

These changes were part of the Closing Loopholes (No.2) Act which became law on 27 February 2024 and the changes affecting casuals come into effect on 26 August 2024.

Defining a casual worker

The existing definition of ‘casual employee’ in the Fair Work Act (which was introduced in 2021 by the Morrison Coalition government and left casual workers with even less security than before that) will be replaced with a new one.

The new definition says that an employee is a casual only if:

1. there isn’t a firm advance commitment to continuing and indefinite work, factoring in the real substance, practical reality and true nature of the employment relationship
2. the employee is entitled to be paid a casual loading or a specific pay rate for casuals.

 Under the new definition, if you are working the same hours on the same days each week, there’s a good chance you might be casual in name only.

Converting from casual to permanent

Additionally under the changes, a new pathway will be introduced for eligible employees to change to permanent employment if you want to, replacing the previous rules for casual conversion.

There are certain eligibility requirements; you need to:

• have been employed for at least 6 months (or 12 months if working for a small business employer)
• believe you no longer meet the requirements of the new casual employee definition.

You can’t request to change to permanent employment if you:

• are currently engaged in an ongoing dispute with your employer about casual conversion, or
• in the last 6 months:
  • your employer has refused a previous notification
  • you’ve resolved a dispute with your employer about casual conversion.

You need to make the request in writing, and your employer must respond to you within 21 days and must give reasons if they deny the request.

If you don’t agree with the decision, you can raise a dispute and ultimately you can have it referred to the Fair Work Commission. There will also be new rules against employers dismissing or threatening to dismiss employees, to engage them as a casual and making certain misrepresentations in relation to casual employment.

Pay entitlements

Casual workers are entitled to a loading on their hourly rate of pay. This means that their hourly pay rate should be more than the permanent workers doing the same work as them. This loading is compensation for the lack of paid leave provisions that casuals are entitled to, as well as the insecurity of their employment.

The amount of leave loading paid depends on the Award or agreement. Casual workers who earn the national minimum wage must get at least 25% casual loading.

Casual workers are also entitled to overtime, paid at 175% of the ordinary hourly rate for the first 2 hours and then 225% of the ordinary hourly rate afterwards, inclusive of casual loading. Casual workers are usually entitled to 250% of their base rate for hours worked during a public holiday.

Casual workers are also entitled to receive superannuation contributions if they are over 18 years old or if they are under 18 years old and work more than 30 hours per week.

Leave entitlements

Under the Fair Work Act, casual workers are entitled to two days unpaid carer’s leave and two days unpaid compassionate leave per occasion.

Casual workers can request 12 months of unpaid parental leave if they have been working regular shifts in the same job for 12 months or more and if they have a reasonable expectation of ongoing work.

Casual workers can also access long service leave. The amount of long service leave you can take and the length of service after which this can be taken will be set out in the Award or agreement that covers the work. Long service leave entitlements will also depend on the relevant state or territory legislation.

Unfair dismissal

Casual workers are entitled to the same rights as permanent employees regarding unfair dismissal.

This means you are entitled to make an unfair dismissal claim if you feel that you have been treated unfairly and fired without legitimate cause, and you have worked six months in the same job (or 12 months for a small business employer).

Casual workers do not have access to notice of termination, or pay in lieu of notice of termination.

Casual shifts

Can casual employees refuse shifts?

Yes, as a casual employee you have the right to refuse, swap or change shifts.

Generally, an employer will offer a casual employee shifts on a particular day, and when offered, casuals can choose to either accept or decline the shift.

The nature of casual work is flexible and is based on communication and agreement between workers and managers. Ideally, employees will be offered regular shifts in a way that suits their schedule and which they will be able to consistently accept.

Can my employer just stop giving me shifts without a reason?

Technically yes. Your employer can just not give you any shifts for a long period of time. They do not need your approval to do this because being a casual worker means you are not guaranteed ongoing work. 

However, if your boss doesn’t give you shifts for an extended period of time or starts cancelling shifts suddenly with no real explanation, you may be experiencing adverse action (when someone – often an employer but not always – acts, plans or threaten to take harmful action against you). Sometimes adverse action can happen in retaliation to you doing something that is protected by your work rights e.g. taking parental leave.

You could also be facing discrimination e.g. if your employer refuses to give you shifts on the basis of your race, sex, age or another protected attribute.

Does my employer have to give me a minimum number of hours for a shift?

Whether your employer has to give you a minimum number of hours per shift depends on your Award or enterprise agreement. eg. If you’re covered by the Fast Food Award, your employer must give you at least 3 hours of work in a row.