Workplace Update: Employers should prepare for Casual Conversion clause in effect from 1 October 2018.

As part of the Fair Work Commission’s (FWC) 4-yearly review of Modern Awards it issued a decision to insert a casual conversion clause (Casual Conversion Clause) into over 80 Modern Awards.

The Casual Conversion Clause will be operative from 1 October 2018 and it will allow eligible casuals  to request conversion to permanent employment.

In order to request casual conversion the employee must:

  • have worked for the employer for a period of 12 months or more; and
  • have worked a pattern of hours on an ongoing basis over the preceding 12 months, which they could continue to perform as a full-time or part-time employee, without significant adjustment.

The employee’s right to request conversion remains continually exercisable after 12 months’ service.

Where an employer refuses a request to convert, the employer must provide the employee with written reasons within 21 days of the request being made and such request may be refused only on reasonable business grounds.

In order to comply with the Casual Conversion Clause, employers will be required to provide every casual employee with a copy of the clause within the employees first 12 months of employment.

A number of Modern Awards already contain a casual conversion provision, some providing just 6 months’ service before the entitlement to make a request is invoked.

If you would like information or advice as to whether you may have obligations with respect to casual conversion, please contact Nick Stevens, Jane Murray or Angharad Owens-Strauss.

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