Casual Employees Can Now Request Permanent Employment – What You Need to Know About the New Employee Choice Pathway

From 26 February 2025, a major change to the National Employment Standards (NES) will give eligible casual employees the right to request a transition to permanent full-time or part-time employment. This is known as the employee choice pathway and is an important development in workplace rights for casual workers.

What is the Employee Choice Pathway?

The employee choice pathway is a new legal entitlement under the NES that allows eligible casual employees to notify their employer that they wish to transition to permanent employment. Unlike the previous casual conversion provisions, under this pathway, an employer must respond to the request and can only refuse based on specific, limited reasons.

Who is Eligible?

Casual employees can notify their employer in writing that they want to transition to permanent employment if they meet the following conditions:

✔ Worked for the employer for at least six months (or 12 months for small businesses with fewer than 15 employees).

✔ No longer meet the definition of a casual employee (i.e., there is now a firm advance commitment to ongoing work).

✔ No current dispute with the employer about transitioning to permanent employment.

✔ Have not been refused a previous request within the last six months.

Small Business Employees – Different Rules Apply

Casual employees working for small businesses (fewer than 15 employees) before 26 August 2024 will not be able to access the employee choice pathway until 26 August 2025. Until then, the previous casual conversion rules will continue to apply.

How Can a Casual Employee Request to Become Permanent?

Eligible employees must submit a written notice to their employer, clearly stating their request to change from casual to full-time or part-time employment. The employer then has a legal obligation to respond.

Employer Obligations – What Happens Next?

Once an employer receives a written request, they must:

✔ Consult with the employee about the request before making a decision.

✔ Respond in writing within 21 days, stating whether the request is accepted or refused.

✔ If accepting the request, discuss employment conditions, including hours, pay, and start date as a permanent employee.

✔ If refusing the request, provide valid reasons in line with NES requirements.

When Can an Employer Refuse a Request?

An employer can only refuse the request based on specific, limited reasons, such as:

✔ The role will significantly change or no longer be available in the near future.

✔ The employee’s hours will be reduced, or their employment will end within the next 12 months.

✔ There are reasonable business grounds to deny the request.

What If There’s a Dispute?

If an employee disagrees with the employer’s decision, they can:

✔ Discuss the issue with their employer to resolve it internally.

✔ Seek advice from the Fair Work Ombudsman.

✔ Apply to the Fair Work Commission to help resolve the dispute.

What Should Employers and Employees Do Now?

Casual employees should check if they are eligible and prepare their written notification if they wish to transition.

Employers should review their workforce needs and prepare for potential requests. Ensuring compliance with Fair Work obligations is crucial to avoid disputes.

Need Help?

If you need assistance understanding these changes or preparing for casual employment transitions, our HR experts can guide you through the process. Get in touch today!