Newly introduced definition of a ‘casual employee’
Newly introduced casual conversion entitlements
The end of ‘double dipping’!
Following the decision in WorkPac Pty Ltd v Rossato
 FCAFC 84 (Rossato Decision
), many casual employees in Australia were likely to have been categorised as permanent employees, on the basis that they:
- worked for their employer for 12 months or more;
- had predictable hours of work;
- had rosters and hours laid out in advance; and
- had an ongoing expectation of work.
Due to this, these ‘casual employees’ were able to ‘double-dip’ and be entitled to both the 25% casual loading, along with annual leave, personal/carer’s leave, and compassionate leave (Statutory Entitlements
As a result, the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020
) was introduced into the Federal Parliament late last year.
On 18 March 2021, a slimmed down version of the Omnibus Bill was passed by the Senate, and it is anticipated that it will soon be enacted as legislation.
The Omnibus Bill introduces several new clauses concerning casual employees into the Fair Work Act 2009
(Cth) (FW Act
- a definition of a casual employee (section 15A);
- an offset clause that permits employers who have misclassified permanent employees as casuals, to offset casual loading amounts previously paid to the employee against any claims made by the employee for Statutory Entitlements – thus ending the possibility of double dipping (section 545A);
- an extension to a casual employee’s rights, with employers now obligated to offer casual employees conversion to permanent employment in certain circumstances; and
- a Casual Employment Information Statement, similar to the current Fair Work Information Statement, which employers will be required to provide to casual employees as soon as practicable after employment commences.
Earlier last year, the High Court of Australia granted labour hire company, WorkPac, special leave to appeal the Rossato Decision (HCoA Decision
), and will be considering sometime this year:
- what a genuine casual employee is; and
- an order to prevent ‘double-dipping’, allowing employers to ‘set off’ any leave entitlements owed to casual employees against the paid casual loadings.
It is unknown what impact the HCoA Decision will have on the Omnibus Bill amendments, however, Hicksons will continue to monitor developments and will keep clients informed of changes as they come to hand.
Once the Bill is enacted, employers will have to comply with any newly enacted sections of the Act, otherwise face potentially prohibitive penalties.
If you are unsure of what changes the Omnibus Bill poses for your business, speak to one of our specialist Workplace Relations team members today, who can provide specific advice regarding:
Post by Hicksons Partner, Warwick Ryan, and Solicitor, Saasha Greeney.
- what amendments may need to be made within your organisation to ensure compliance with the newly passed Omnibus Bill; and
- how best to approach and respond to casual employees bringing claims for entitlements retrospectively.