Casual worker reforms: ‘It’s essential employers and HR teams are prepared’

The planned reforms for casual workers’ rights are a win for job security. Regardless, it’s important that workplaces prepare for this change.

As recently reported by HR Leader, the government announced reforms that will make it easier for casual workers to transition into full-time work. These upcoming changes will improve job security for over 850,000 employees across Australia.

While this is certainly a win for casual workers, employers can run the risk of running into trouble if they do not appropriately prepare for the changes.

“Eligible casual employees can refuse the opportunity to convert to a permanent position; however, the proposed changes aim to provide them with increased job security and access to benefits, including paid leave and notice periods,” said NB Employment Law director Jonathan Mamaril.

“It’s essential employers and HR teams are prepared. At a minimum, employment contracts, specifically those of casual workers, are reviewed. It’s vital contracts accurately reflect the nature of the employment relationship and terms, including hours worked, job responsibilities and payment arrangements are clearly defined.”

Employers may have to set more time aside to keep up with the changes, as a breach could result in penalties.

Mr Mamaril continued: “Employers must establish robust record-keeping systems, which accurately detail all hours worked by casual employees, including start times, finish times and any breaks taken.”

Before the changes come into effect, employers may benefit by educating themselves on the additional responsibilities that will come from the reforms. Staying up to date on the new laws will help to avoid any breaches and ensure casual employees are being adequately cared for.

“Education is key, with managers informed about their rights and responsibilities,” explained Mr Mamaril

“At a minimum, managers should be trained on how to identify and classify workers based on their roles and duties to determine if eligible casual workers can be extended an invitation to transition to permanent employment.”

Employers may benefit by discussing the options with their workforce. The new reforms give the option to transition into full-time employment if the casual worker meets the requirements and also wants to. There is no pressure to do so if they wish to remain casual. Discussing this with staff can help to gather a better understanding of how the changes will affect specific workplaces.

“Some casual employees will jump at the opportunity to transition and receive the benefits associated with permanent employment, while others will be reluctant to give up penalty rates,” Mr Mamaril said.

“The concept of same job, same pay, amongst other things, aims to address the issue of wage disparity between casual and permanent employees who are doing identical work. Just because someone is labelled as a casual worker, doesn’t mean they should have job insecurity.”