On the 26th of March 2021, new casual conversion provisions were introduced to the Fair Work Act 2009 (Cth) which created a new obligation to proactively offer eligible casuals employees conversion to permanent employment. Employers were given a six-month grace period to the 27th of September by which time they would need to ensure compliance. 

The key amendments made were: 

• A definition of what constitutes a casual employee
• The introduction of the Casual Employment Information Statement (CEIS) 
• Introduction of casual conversion for all casuals 

Prior to these changes, Awards contained various definitions of what constituted a “casual employee”, as well as a wide variety of casual conversion clauses with different qualifications and requirements. To align this with the newly introduced legislation, the Fair Work Commission (FWC) was given six months to review and update the Awards and align them where necessary. 

The FWC finalised this review last month and all Awards are now aligned with the casual employment definition and casual conversion rights provisions of the National Employment Standards (NES)

The major change that has substantial impact on organisations, is the obligation for employers to assess all casuals that have worked for 12 months on their eligibility to be offered permanent employment: aka, casual conversion. 

Casual conversion 

The casual conversion right goes further than what was provided for in the Awards, which provide the entitlement for employees to request the conversion. Employers now have an obligation to assess the casual employment and offer conversion to all eligible casual employees, including those not covered by an Award, unless there are reasonable business grounds not to make an offer or the casual employee does not qualify. 

In all cases, the employer must notify the employee, in accordance with the provisions of the Bill, of the outcome of the assessment. 

Additionally, where a casual employee has declined or was informed that no offer will be made, they have the residual right to request conversion at a later date. 

Employers must offer to convert a casual employee to permanent employment if the employee: 



• has been employed for 12 months; and 
• during the last 6 months, has worked a regular and systematic pattern of hours without significant adjustment. 

The offer must be for either full-time employment (when worked the equivalent of full-time hours) or part-time employment. 

However, employers are not obliged to make an offer if there are “reasonable business grounds” to not make the offer. Such grounds must be known or reasonably foreseeable at the time of declining to make the offer.  

The Bill defines reasonable business grounds as including: 

• where the conversion would require a significant adjustment to the employee’s hours of work in order for the employee to be employed permanently; 
• where the employee’s position will cease to exist in the 12 months after the conversion right arises; 
• where the hours of work that the employee is required to perform will be significantly reduced in the 12 months after the conversion right arises; and 
• if there will be a significant change in the days of times on which the employee’s hours of work are required to be performed in the 12 months after the conversion right arises. 

If an employer determines not to make an offer of conversion, they must give notice of the decision to employees within 21 days of when the right to be offered conversion arose. 

Once an employee has responded that they accept the offer, the employer must discuss with the employee whether the employment is full-time or part-time, the hours of work and the date it commences and provide this in writing within 21 days. 

Casual Employment Information Statement 

Employers are also required to provide all casual employees with a Casual Employment Information Statement (CEIS) on commencement of employment alongside the Fair Work Information Statement. 

What this means for employers 

As of the 27th of September this year, all casual employees working within your organisation should have had their eligibility for conversion assessed. By this date, employers should have written to the employee either: 

• offering conversion; or 
• if you have decided not to offer the employee conversion – explaining that you are not offering conversion and the reasons for that decision. 

It will also be important for employers to establish a process that ensures they are offering conversion, or the reasons for refusal, on the first anniversary of their employment period. At this time, employers should write to each casual employee either: 

• offering conversion; 
• explaining that conversion will not be offered because they have not worked a regular pattern of hours for six months; or 
• explaining that conversion will not be offered because there are reasonable business grounds to refuse conversion. 

Where an employee is offered conversion, they must respond within 21 days accepting or refusing conversion. If they do not respond, they are taken to have declined conversion. 

If you need assistance ensuring that your business is compliant with these changes regarding casual conversion, contact Bayside Group’s Workplace Relations team today.