The Fair Work Commission (FWC) has proposed that casual workers have the right to request permanent employment, if they work regular and systematic hours over 12 months.   FWC will take submissions until 2 August 2017 and hold further hearings before making a final determination.

Similar provisions already exist in most Awards although the existing process is a bit vague, so employees will have 'the right to request' but not be entitled to, a permanent position.   (Incidentally, 20 years ago there were 4 full time workers for every part-time, it's now 2 full time to 1 part-time, and within 10 years it's expected to be 1:1)

The proposed conditions to 'make a request' are:

·       A qualifying period of 12 consecutive months

·       The casual employee must have worked a pattern of hours on an ongoing basis over those 12 months which could continue to be worked on either a full-time or part-time basis, without significant adjustment.

An employer can refuse if:

·       It means a significant adjustment to the employee's hours of work

·       It is reasonably foreseeable that the casual employee's position will cease to exist, or the hours of work will significantly reduce within the next 12 months, or there is a reasonable ground based on facts either known or reasonably foreseeable.

What does this mean for employers?

There is also a proposal by the FWC to enforce a daily minimum engagement of four hours.   Employers using casuals to regulate peaks in customer demand and to manage employment costs, such as periods of notice, potential redundancy payments, and outlays for unfair dismissal, need to review their policy on the use of casuals.

·       Rethink rosters and whether this could be carried out by full-time of part-time workers, rather than casuals.

·       Identify roles that could be carried out by full-time or part-time workers so there is a 'foreseeable reason' that the casual hours will be reduced.

·       Calculate the added cost of loadings for casuals against the cost of full-time or part-time within entitlements.

Although this is not yet legislation, no doubt it will come in some form.   So, think about the reasons and cost/benefit for employing casuals, in the end it may be more expensive as a policy.