Summary
Since March 2021, the Fair Work Act requires employers to offer casual conversion to eligible casual employees. If you have casual staff who've been working regular hours for 12 months, you likely have an obligation to act. Here's what you need to know.
What is casual conversion?
Casual conversion is the right of a casual employee to become a permanent (part-time or full-time) employee if they've worked a regular pattern of hours over a period of time. It recognises that some "casuals" are casuals in name only — they work set days every week, and both parties expect the arrangement to continue.
When are you obligated to offer conversion?
For businesses with 15 or more employees, you must offer conversion when a casual employee has:
- Been employed for 12 months
- Worked a regular pattern of hours for at least the last 6 of those 12 months
- Could continue working those hours as a permanent employee without significant changes to the business
Small businesses (under 15 employees) don't have to proactively offer, but must respond to employee requests.
How time tracking data proves the pattern
The key question in casual conversion is: "Has this person been working regular and systematic hours?" Your time and attendance records are the evidence. NestedClock stores every shift with exact start/end times, making it straightforward to identify staff who've been working consistent days and hours over 6+ months.
What happens if you don't comply?
- Employees can request conversion themselves, and you must respond within 21 days.
- Failure to comply can result in penalties.
- The Fair Work Ombudsman can investigate and issue compliance notices.
Using NestedClock to stay ahead
- Review your staff timesheets quarterly. Look for casuals who've been working the same days/hours for 6+ months.
- Check the Payments → By Shop view. Staff with consistent weekly hours over multiple pay periods may be approaching the threshold.
- Document your decision. If you have reasonable business grounds not to offer conversion, document them. Fair Work may ask for evidence.
Your time records are your best defence — or your best evidence that it's time to make the offer. See how NestedClock keeps compliant records automatically.