Understanding casual employment can be complex and confusing. If you are a business owner, you need to be aware of new changes in legislation. Do you employ casual workers?
In 2020, the Full Federal Court (in the judgement of Workpac Pty Ltd v Rossato) announced that your casual workers can, in some circumstances, still be considered as permanent employees. Regardless of what their contract states and regardless of the payment of casual loading. This decision took several industries by shock and created confusion among employers. The Federal Government estimated the potential cost to employers to be between $18 billion and $39 billion.
In short, the effect of this ruling was that some “casual” employees will be entitled to paid annual leave, personal/carer’s leave, compassionate leave, and public holidays. In addition, the Court ruled that the casual loading paid to the employee could not be claimed back by the employer.
This aspect of the ruling was informally labelled ‘double dipping’ as affected casuals were able to access both sets of entitlements.
However, in August 2021, the High Court overturned this decision and amended the Fair Work Act 2009 to include a statutory definition of ‘casual employee’ and inserted provisions to deal with casual loading.
Casual employment arrangements can become complicated when an employee's working pattern no longer reflects the terms of their engagement. Reviewing contracts, workplace practices and employee classifications with the support of HR advice services can help reduce confusion and minimise compliance risks.
Casual employment laws can be complex, particularly where employee classification, entitlements and contract terms are involved. Explore our HR advice services for guidance on casual employment, workplace obligations and Fair Work compliance.
