How to handle casual conversion
A complete guide to managing casual-to-permanent conversion requests under the 2025 Fair Work employee choice pathway. Know your obligations and respond correctly.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about casual conversion requests in Australia. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
New rules from 2025 – general information only
This guide covers the employee choice pathway for casual conversion that commenced 26 February 2025 (26 August 2025 for small businesses). The information is general in nature and does not constitute legal advice.
For official guidance, see the Fair Work Ombudsman casual conversion page or contact the Fair Work Infoline on 13 13 94.
2025 casual conversion timeline
26 February 2025
Employee choice pathway begins for non-small businesses
Casuals employed for 6+ months can notify employer of intent to convert.
26 August 2025
Employee choice pathway begins for small businesses
Small business employers (under 15 employees) must respond to conversion requests.
Within 21 days
Employer must respond
Written response required accepting or refusing the request with reasons.
How to handle conversion requests
Follow this process when an employee requests to convert from casual to permanent employment.
Understand the employee choice pathway
From 26 February 2025, eligible casuals can notify their employer they want to convert to permanent employment.
Tips:
- This is the main pathway for casual conversion from 2025
- The employee initiates the process by providing written notice
- Small businesses (under 15 employees) have until 26 August 2025
- Replaces the previous employer-offer system for most employees
Check employee eligibility
Verify the employee meets the requirements to request casual conversion.
Tips:
- Must have been employed for at least 6 months (12 months for small businesses)
- Employee believes they no longer meet the casual employee definition
- The casual definition: no firm advance commitment to ongoing work with an agreed pattern
- Regular, predictable hours over time may indicate the employee is no longer truly casual
Receive and acknowledge the written notice
When an employee provides written notice, acknowledge receipt and begin the consultation process.
Tips:
- The notice must be in writing from the employee
- Acknowledge receipt promptly
- Begin your assessment of the request
- Fair Work provides templates employees can use
Consult with the employee
Discuss the request with the employee and assess whether conversion is appropriate.
Tips:
- Meet with the employee to discuss their request
- Review their work pattern over recent months
- Consider their hours, roster consistency, and role requirements
- Give the employee a chance to respond to any concerns
Respond in writing within 21 days
Provide a written response accepting or refusing the request within the required timeframe.
Tips:
- You must respond within 21 days of receiving the notice
- If accepting: specify the new employment type (full-time or part-time)
- If refusing: provide the specific grounds for refusal
- Keep copies of all correspondence
Implement the change or manage disputes
If accepted, update employment records. If refused, understand the dispute process.
Tips:
- Update employment contracts and payroll records
- Adjust leave accruals (permanent employees accrue leave)
- If the employee disputes your refusal, it can go to Fair Work Commission
- The Commission can mediate or make a binding decision
Manage casual conversion
RosterElf tracks employee hours and tenure to help you identify casual conversion obligations. Built for Australian small businesses.
When can you refuse conversion?
Employers can only refuse casual conversion requests on specific grounds.
Employee still meets casual definition
The employee genuinely still works on a casual basis without a firm advance commitment to ongoing work.
Example: Shifts are offered week-to-week based on demand with no guaranteed hours.
Substantial operational changes
The business is making significant changes that would affect the position.
Example: The role is being restructured or the business is downsizing that area.
Position becoming redundant
There are genuine plans for the position to no longer exist.
Example: The seasonal work that created the role is ending.
Significant reduction in hours
There are reasonable grounds to believe the employee's hours will be significantly reduced.
Example: A major client contract is ending, reducing available work.
Important: You must specify which ground applies when refusing a request. Generic refusals are not valid. The employee can dispute your refusal through the Fair Work Commission.
Casual vs permanent employment
Key differences between casual and permanent employment status.
| Aspect | Casual | Permanent |
|---|---|---|
| Leave entitlements | No paid leave (compensated by casual loading) | Accrues annual leave, personal leave, and other NES entitlements |
| Casual loading | Usually 25% loading on base rate | No loading (but may earn more with leave value) |
| Notice of termination | Generally minimal notice required | Notice period based on length of service |
| Redundancy pay | Not entitled to redundancy pay | May be entitled based on service length |
| Roster certainty | No guaranteed hours | Agreed regular hours each week |
Related guides
More HR and compliance resources.
Frequently asked questions
- From 26 February 2025, eligible casual employees can notify their employer in writing that they want to change to permanent (full-time or part-time) employment. This replaces the previous system where employers had to make offers. The employee initiates the process, and employers must respond within 21 days.
- A casual employee can request conversion if they have been employed for at least 6 months (12 months for small businesses under 15 employees) AND they believe they no longer meet the definition of a casual employee. This typically means they work regular, predictable hours rather than truly irregular casual shifts.
- Under the Fair Work Act, a casual employee is one where there is no firm advance commitment to continuing and indefinite work according to an agreed pattern. If an employee has worked regular, consistent hours over time, they may argue they no longer meet this definition.
- Yes, employers can still proactively offer casual conversion. However, the main pathway from 2025 is employee-initiated. Some awards may have specific conversion rules that also apply.
Regulatory sources
This guide is aligned with official Australian workplace regulations.
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