TL;DR: Since 26 August 2024, casual conversion under the National Employment Standards has been replaced by employee choice. A casual with 6 months’ service (12 months for a small business) can notify you in writing that they want to become permanent. You must consult, reply in writing within 21 days, and refuse only on the grounds the Fair Work Act allows.

Last updated 11 October 2026.

Key takeaways

• According to the Fair Work Ombudsman, the pathway to permanent work changed from casual conversion to employee choice on 26 August 2024.
• Employers no longer assess every casual at 12 months; instead, the casual starts the process with a written notice.
• A casual becomes eligible to give notice after 6 months of employment, or 12 months with a small business employer.
• An employer must consult, then respond in writing within 21 days, giving reasons if it does not accept the change.
• The Fair Work Commission can now arbitrate an unresolved dispute and order that the employee be treated as permanent.

What happened to casual conversion in Australia?

Casual conversion was the National Employment Standards process from March 2021 that required most employers to offer permanent work to eligible casuals at 12 months. According to the Fair Work Ombudsman, it was replaced on 26 August 2024 by the employee choice pathway, under the Closing Loopholes changes. Casuals now start the process themselves.

Under the 2021 rules, employers with 15 or more employees had to assess each casual after 12 months. Within 21 days of that assessment, the employer either made a written offer of permanent work or wrote to explain why no offer would be made. Small business employers only had to respond to requests.

The Fair Work Amendment (Closing Loopholes No. 2) Act 2024 reversed the direction of travel. The employer no longer offers; the employee notifies. The casual definition changed on the same day, so the question is now whether the casual still meets the new definition. Our explainer on the new rules for casual employees sets out that definition in full.

Some casuals employed before the change kept access to the old offer and request pathways for a transition period. According to the Fair Work Ombudsman, those pathways remained available for some casuals up to 26 August 2025. Since then, employee choice is the only National Employment Standards route.

What are an employer’s obligations under the employee choice pathway?

An employer has three core obligations when an eligible casual gives written notice. First, consult the employee about the change. Second, respond in writing within 21 days, either accepting or refusing. Third, refuse only on the permitted grounds and give reasons. In addition, the employer must not cut hours or end employment to avoid the change.

The Fair Work Ombudsman describes the consultation step in practical terms. You discuss whether the employee would become full-time or part-time, what their hours would be, and when the change would take effect. Only then do you reply.

If you accept, the written response must confirm the new status, the new hours, and the start date. The change applies from the first full pay period after your response, unless you both agree on another day. If you refuse, the written response must give your reasons.

Two older obligations carry on alongside the pathway. You still give the Casual Employment Information Statement at set points, and you still need accurate records of each casual’s start date. Both feed directly into the tips below.

What are 10 tips to meet your casual conversion obligations now?

The ten tips cover who counts as a small business, record keeping, how often a casual can give notice, award terms, the consultation and 21-day reply, templates, communication, refusals, acceptance, and disputes. Each updates one of Source HR’s original 2021 casual conversion tips to the employee choice rules that apply today.

Source HR, an HR services business that partners with Worknice, first wrote these tips for the 2021 rules. The structure still works, because the same pressure points remain. However, most of the answers have changed.

Tip 1: Work out whether you are a small business employer

According to the Fair Work Ombudsman, a small business employer has fewer than 15 employees at a particular time. The count includes employees of associated entities. Casuals only count if they work on a regular and systematic basis. So a group of small entities can be one large employer once you combine the headcount.

The answer changes two things. A casual of a small business becomes eligible to give notice after 12 months rather than 6. In addition, a small business gives the information statement again at 12 months only, rather than at 6 months, 12 months, and every year after.

Tip 2: Keep accurate start dates for every casual

In 2021, the advice was to know when each casual started, because your duty to assess began at 12 months. That advice still holds, for a different reason. Eligibility now turns on 6 or 12 months of employment, and the information statement falls due on fixed anniversaries.

Accurate start dates also settle arguments quickly. For instance, suppose a casual gives notice at what they believe is 6 months, but your records show 5. A clean employee record lets you answer within days rather than weeks.

Tip 3: Expect notices to repeat, not to arrive once

Under the 2021 rules, the employer’s assessment only arose once. Employee choice works differently. A casual can give notice whenever they believe they no longer meet the casual definition. According to the Fair Work Ombudsman, the main limit is timing: no new notice within 6 months of a refusal or a resolved dispute.

So a refusal today is not the end of the matter. If the work pattern keeps firming up, expect another notice in six months, and keep your reasons current.

Tip 4: Check your award or enterprise agreement

The original tip warned that some awards had more generous conversion clauses, such as a 6-month trigger in the manufacturing award. According to the Fair Work Ombudsman, the Fair Work Commission has since updated modern awards in response to the Closing Loopholes casual changes. Enterprise agreements can still carry their own terms.

So read the instrument that actually covers your people before you retire an old process. A casual can also change to permanent under their award or agreement, not just the National Employment Standards.

Tip 5: Consult first, then reply in writing within 21 days

Your obligation is to consult, decide, and respond in writing. The 21 days run from the day the employee gives notice, not from the day a manager reads it. So route notices to one owner, rather than leaving them in a site manager’s inbox.

Consider a large retailer with casuals across 40 stores. A notice handed to a store manager on a Friday can lose a week before HR sees it. A single intake point, and a clear deadline, prevents a missed response.

Tip 6: Have template letters ready

The 2021 tip was to keep template conversion letters on hand. Today, the Fair Work Ombudsman publishes a checklist and template for responding to an employee’s notice. Adapt it to your organisation, and keep a version for accepting and another for refusing. As before, the employee does not need to sign your response.

Tip 7: Plan your communication with casuals and managers

Many casuals have never thought about the pathway, and some genuinely prefer to stay casual. Clear communication avoids surprises on both sides. Brief rostering managers first, because they hear the questions and control the hours.

The Casual Employment Information Statement does part of this work for you. It explains the casual definition, how to give notice, why an employer can refuse, and the Fair Work Commission’s role. Give it on time, and use the version current on the day it falls due.

Tip 8: Refuse only on the permitted grounds, with evidence

Your obligation is to make a decision, not to say yes. According to the Fair Work Ombudsman, you can refuse because the employee still meets the casual definition, or on fair and reasonable operational grounds. You can also refuse where accepting would breach a recruitment or selection process required by law.

Keep evidence for whichever ground you rely on. For instance, if you say the role still has no firm advance commitment, record how shifts are offered and declined.

Tip 9: If you accept, update the contract, pay, and records

If the change goes ahead, the employee moves to full-time or part-time employment with the matching entitlements. That means paid annual leave, paid personal and carer’s leave, notice of termination, and redundancy pay in certain situations. The casual loading stops at the same time.

As the original tip suggested, consider issuing a new contract at this stage. In addition, update the employment type in your HR system and payroll, so leave starts accruing from the right pay period.

Tip 10: Know what happens if you disagree

If the employee disputes your decision, try to resolve it at the workplace first. The Fair Work Commission can then deal with it by mediation, conciliation, or a recommendation. If that fails, a Commission Member can arbitrate and order that the employee be treated as permanent.

That is a real change from 2021. Back then, Source HR noted, the Commission could only arbitrate with the employer’s agreement. Now, an unresolved dispute can end in a binding order either way.

When can an employer refuse a casual’s notice to become permanent?

An employer can refuse a notice for three reasons only. The employee still meets the casual definition, there are fair and reasonable operational grounds, or accepting would breach a recruitment or selection process required by law. According to the Fair Work Ombudsman, the written refusal must state the reasons, and it must follow consultation with the employee.

Operational grounds have a specific meaning. The Fair Work Ombudsman’s examples are substantial changes to how work is organised, significant impacts on the business’s operation, and substantial changes to the employee’s conditions to stay compliant with an award or agreement. A general preference for flexibility does not meet that bar.

The first ground needs the most care, because it turns on the 2024 casual definition. For example, a casual rostered on the same five mornings every week, alongside part-time staff in the same role, is unlikely to still be casual. The Fair Work Ombudsman’s own example, a contract cleaner in that position, ends with the employer accepting the notice.

What protections stop employers avoiding employee choice?

Employers cannot reduce or vary a casual’s hours, change their pattern of work, or end their employment to avoid the employee choice pathway. According to the Fair Work Ombudsman, casuals are also protected from adverse action for giving notice, receiving a response, or taking part in a dispute. These protections sit in the general protections rules.

In practice, the risk sits with rostering decisions made after a notice arrives. Suppose a manager trims a casual’s shifts in the week after they give notice. Even if the reason is unrelated, the timing invites a claim. So brief managers to talk to HR before changing a casual’s roster during a live notice.

Sham arrangements carry their own penalties. It is illegal to knowingly mislead a permanent employee into a casual contract for the same work. Likewise, you cannot dismiss someone, or threaten to, in order to re-engage them as a casual. Our guide to whether a contractor should be an employee covers the related tests for contractors.

How should HR track casual eligibility across a workforce?

HR needs three facts for every casual: their start date, their employment type, and whether they work for a small business employer. Those decide when a casual can give notice and when each information statement falls due. In addition, keep each notice, the consultation notes, and the written response together, so the 21-day deadline is visible.

Spreadsheets cope with a few dozen casuals. However, they struggle with hundreds of casuals across sites and entities, where start dates drift and notices arrive at local level. A single employee database keeps the dates in one record, and a dated document trail shows what you sent and when.

If that is the gap, Worknice is a sensible option for Australian organisations of roughly 50 to 1,000 employees. Its Workflows can assign paperwork a set time after each start date, while payroll stays in Xero, MYOB AccountRight, MicrOpay, KeyPay, Employment Hero Payroll, or ELMO Payroll. However, Worknice does not decide whether someone is still a casual, so that judgement needs proper HR or legal input.

Frequently asked questions

Does casual conversion still exist in Australia?

Not under the National Employment Standards. According to the Fair Work Ombudsman, casual conversion was replaced by the employee choice pathway on 26 August 2024. Eligible casuals now give written notice that they want to become permanent, and the employer responds. An award or enterprise agreement may still contain its own terms, so check yours.

How long does a casual have to work before asking to become permanent?

A casual can give notice under the employee choice pathway after at least 6 months of employment. For a small business employer, with fewer than 15 employees, the period is 12 months. The casual must also believe they no longer meet the casual definition. Either way, both parties can agree to a change at any time.

How long does an employer have to respond to an employee choice notice?

An employer must respond in writing within 21 days of the employee giving notice. Before replying, it must consult the employee about full-time or part-time status, hours, and the start date. An acceptance confirms those details. A refusal must give reasons, and it can only rely on the grounds the Fair Work Act allows.

Can an employer refuse a casual employee’s request to become permanent?

Yes, but only for set reasons. The employee may still meet the casual definition, or there may be fair and reasonable operational grounds. Alternatively, accepting may breach a recruitment process required by law. The refusal must be in writing with reasons, and the employee can take a dispute to the Fair Work Commission.

Can a casual employee refuse to become permanent?

Yes. Under employee choice, the casual decides whether to give notice at all, so nobody is converted against their will. According to the Fair Work Commission, a casual can choose to remain casual and not use the process. A casual and employer can still agree to a change at any time.

About the author

Graham Martin is Co-founder of Worknice, an Australian HRIS built for mid-to-large organisations. He has spent more than a decade working with Australian People and Culture teams on HR systems, compliance, and payroll integration.

Related reading

• New rules for casual employees: who counts as a casual since August 2024, the information statement, and casual entitlements.
• Fixed term contract rules: the two-year limit and its exceptions, including the restriction on some casual academics.
• Does a contract need a signature?: how to record that an employee accepted new permanent terms.
• HR document management: how notices, responses, and contracts sit against each employee record.

Sources

1. Fair Work Ombudsman, “Becoming a permanent employee”. Content last updated 7 August 2026. Retrieved 11 October 2026: https://www.fairwork.gov.au/starting-employment/types-of-employees/casual-employees/becoming-a-permanent-employee
2. Fair Work Ombudsman, “Casual employment changes”. Published 12 April 2024, updated 26 February 2025. Retrieved 11 October 2026: https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/casual-employment-changes
3. Fair Work Ombudsman, “Casual employees”. Content last updated 7 August 2026. Retrieved 11 October 2026: https://www.fairwork.gov.au/starting-employment/types-of-employees/casual-employees
4. Fair Work Ombudsman, “Casual Employment Information Statement”. Content last updated 7 August 2026. Retrieved 11 October 2026: https://www.fairwork.gov.au/employment-conditions/information-statements/casual-employment-information-statement
5. Fair Work Commission, “Casual to full-time or part-time employment”. Retrieved 11 October 2026: https://www.fwc.gov.au/workplace-disputes/other-workplace-disputes/casual-full-time-or-part-time-employment
6. Federal Register of Legislation, “Fair Work Act 2009”. Compilation No. 73 (C2026C00355), compilation date 7 July 2026, sections 15A, 66AAA to 66MA and 125B. Retrieved 11 October 2026: https://www.legislation.gov.au/C2009A00028/latest/text