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LEGAL AND IR
NATIONAL
Fair Work Act 2009: New National Employment Standard for offering casual conversion In March 2021, a new National Employment Standard was inserted into the Fair Work Act 2009 (the Act). The new Standard created obligations for all federal system Members in respect of:
» Offers of casual conversion; and » Requests from employees for casual conversion. Requirement to provide notice of casual conversion Members (other than small business Members) must do the following: 1. Assess whether any of their casual employees are eligible for offers of casual conversion to permanent (full time or part-time) employment; and 2. Either: (a) make a written offer to the eligible casual employee to convert their employment to permanent (full time or parttime employment); or (b) write to the otherwise eligible employee explaining why they won’t be making an offer to convert to permanent employment. Small business Members are exempt from obligations to offer casual conversion. A Member will be a small business Member if it employs 14 or fewer employees. In this headcount of 14, Members should:
• include employees of all associated entities (if any); and
• exclude all non-regular casual employees.
mga.asn.au | September 2021 | Edition 5
As a result of the Review, the Fair Work Commission may make changes to the GRIA, particularly to casual employment definitions in the GRIA and the casual conversion clauses in the GRIA. The MGA and Legal and IR team will keep members abreast of developments and any changes to the GRIA.
Eligibility criteria for casual conversion – when must Members make an offer?
Requirements of offer of casual conversion The offer must be:
• made in writing; • be clear as to whether the employee
would convert to full-time or part-time employment; and
• If the employee was employed
after 26 March 2020 – be given to the employee within 21 days after the end of their 12-anniversary2 of commencement; or
Members must make an offer to an eligible casual employee to convert to permanent full time or part-time employment if the employee:
• If the employee was employed on or
1. Has been employed by the Member for a period of at least 12 months;
Fair Work Act 2009 (Cth), s 66B(2).
2. During at least the last 6 months of the 12-month period, the employee has worked a regular pattern of hours on an ongoing basis; and 3. Could continue to work as a full-time employee or a part-time employee without significant adjustment.1 1
Fair Work Act 2009 (Cth), s 66B(1).
before 26 March 2020 – be given to the employee by 16 April 2021.
If Members have not met the above deadlines, it is advisable that the offer be made as soon as possible. The employee must respond to the offer within 21 days and a failure to do so will mean that they are taken to have declined the offer. If you require assistance in preparing the letter of offer, please contact our MGA TMA Legal and IR Team on 1800 888 479
