A recent Fair Work Commission decision has introduced a casual-conversion clause to a range of modern awards. This clause allows casual employees the right to request to change to part- or full-time employment after a 12-month period of working for an organisation. Here’s what is means for small business owners:
- A casual employee will have the right to request to become a part-time or full-time employee if the following conditions are met:
- They have worked for your organisation for a minimum of 12 months.
- They have worked a pattern of hours on an ongoing basis over those 12 months.
- This pattern will continue to be worked for the foreseeable future and could continue to be worked on a part- or full-time basis without much adjustment.
- The employer must provide all casual employees with a copy of the clause within the first twelve months after beginning work.
- An employer can refuse the request if it would require significant adjustment to the working schedule, if the employee’s position will cease to exist, or if the employee’s hours will change or be reduced within 12 months.
- This decision can allow for greater flexibility within the workplace as employee’s may feel they have more say in their working conditions.
- Having an employee become a part- or full-time worker can reduce wage costs and increase the loyalty the employee feels toward the organisation.
Remember to clearly and openly communicate with your casual employees about the possibility of changing their employment status. It may not always be a viable option for an employee to change, however allowing for an open dialogue can allow for discussion around different options to improve the employee’s working life.
For more information on casual-conversion clauses contact us on (08) 9316 9896 or firstname.lastname@example.org.