Casual Conversion: What Employers Actually Need to Do

If you run a business with casuals on the books, you've probably heard the phrase "casual conversion" thrown around. Maybe your bookkeeper mentioned it, maybe you saw something on the Fair Work site, or maybe you're just hoping it doesn't apply to you.

It does. Here's what you actually need to know.

The short version

Since 26 August 2024, casual employees can give you a written notification that they want to convert to permanent (full-time or part-time) employment. Before that date, the obligation sat with you to offer conversion. Now the employee drives it.

That's a big shift. A lot of employers haven't caught up.

Who can request conversion?

A casual employee can notify you in writing if they believe they no longer meet the definition of a "casual employee" under the Fair Work Act. In plain terms, that means they reckon the job has become regular and predictable. Not genuinely casual anymore.

There's no minimum service period for making the request, but in practice it's most common after 6 to 12 months of consistent rostering.

What you need to do when you get a request

1. Don't ignore it. You have 21 business days to respond in writing.
2. Assess the request properly. Look at the actual working pattern. Is the employee working a regular roster? Are the hours predictable? Would a reasonable person call this arrangement casual?
3. Accept or refuse in writing. If you refuse, you need to give genuine reasons. "We prefer casuals" isn't a reason. You need to point to something real, like the role genuinely being irregular, or substantial changes coming to the business that would affect the position.

Where employers get tripped up

The biggest mistake I see is doing nothing. A casual sends the notification, it lands in someone's inbox, and three months later nobody's responded. That's a compliance breach. It also tells Fair Work you're not managing your workforce properly.

The second mistake is a reflexive "no" without actually assessing the situation. If someone's been working Monday to Friday, 38 hours a week, for 18 months, that's not a casual. That's a permanent employee without the entitlements. Converting them protects you as much as it protects them.

The practical bit

Here's what I'd do if I were running your business:

• Audit your casual roster now. Look at everyone who's been working regular, predictable hours for more than 6 months. Those are your conversion risks.
• Have a template response ready. When a request comes in, you don't want to be drafting something from scratch under time pressure.
• Talk to your casuals. Not formally, just a conversation. Some of them want to stay casual (the loading, the flexibility). Some of them want permanency. Better to know now than to be surprised.
• Keep records. Every notification, every response, every assessment. If this ever ends up at the Fair Work Commission, your paperwork is your defence.

The bottom line

Casual conversion isn't optional and it isn't going away. The rules now put the employee in control, and employers who aren't ready for that will get caught out.

Get your house in order now. It's cheaper than fixing it later.

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This is general information only, not legal advice. If you've got a specific situation, get in touch with The People Part and we'll point you in the right direction.