The reign of the ‘contract is king’ era is ending
On 26 August 2024, the old ‘multi-factor’ casual employment test will make a comeback, with some key updates.
Since 2021, the test as to whether employment is casual employment has focused on whether there was a firm advance commitment to continuing and indefinite work according to an agreed pattern of work. Now, the focus will shift back to:
- the real substance, practical reality and true nature of the employment relationship; and
- whether the employee is entitled to be paid a casual loading or specific casual rate.
In line with the changes, as opposed to merely the written contract terms, relevant factors that will need to be considered in determining whether a person is a casual employee include whether the employee has a regular pattern of work and whether there are any permanent employees performing the same kind of work as the casual employee within the business.
A new pathway to permanent employment
New requirements as to the Casual Employment Information Statement
There will also be strict and ongoing requirements for employers in relation to the issuing of the Casual Employment Information Statement (FWCEIS) for both new and existing employees. Casual employees must be provided with a copy of the FWCEIS before (or as soon as possible after) commencement, and then again after 6 months, then 12 months, and then again after each further 12 months of employment.
To ensure your obligations are met, and your business is protected, contact the team at Emplawyer for expert guidance.
