New Laws for Casual Workers in Australia.
Some Australians prefer casual employment as the wages are higher than a permanent employee. Normally 25% higher.
The Australian government is moving ahead with further employment reform that will force employers to offer casual workers who work regular hours a permanent job.
Employment Minister Tony Burke has unveiled reforms to force bosses to offer casual staff who work regular hours a permanent job, but Mr Burke expects most casuals will stick with casual, for the higher pay.
Will many Casual Employees accept a lower income for a permanent position?
In August 2022 there were 2.7 million casual employees. (23% of all employees).
In August 2021 there were 2.4 million casual employees. (23% of all employees).
In August 2020 there were 2.3 million casual employees. (22% of all employees).
Sources:
abs.gov.au/…/aug-2022
Most casual employees, who have worked for their employer for 12 months, need to be offered, in writing, the option to convert to full-time or part-time (permanent) employment by their employer.
fairwork.gov.au
Small business employers don’t have to offer to convert their casual employees to permanent employment. However, an eligible casual employee, working for a small business employer, can request to convert to permanent employment at any time on or after their 12-month anniversary.
A small business employer is an employer with fewer than 15 employees at a particular time. Casual employees are not included unless engaged on a regular and systematic basis.
An article on the subject from theconversation.com
Australia’s National Employment Standards – the minimum safety net for all workers – say a casual employee who has worked for their employer for 12 months must be offered the option to convert to full-time or part-time (permanent) employment. But there are significant exemptions, particularly for small business.
Close to 60% of Australia’s casual workers have been with their employer for more than a year, and 45% to 60% report regular hours and pay. This has resulted in the great Australian oxymoron of “the permanent casual”.
There is effectively a class of workers who don’t get holiday and sick pay, no matter how long or regularly they work, simply because their employer deemed them “casual” when they began.
Note: A casual worker normally receives 25% more income than a permanent worker. This extra amount is to cover their income while on holiday or sick.
Example:
Permanent Employee.
Hourly rate of $23.87
Annual Total: $47,167.12 (working just 48 weeks, after 4 weeks holiday).
52 weeks x 38 hours x $23.87
Casual Employee:
Hourly rate of $23.23
Extra for Holiday and Sick pays: $5.81
Total: $29.04
Annual Total: $52,968.96
(48 weeks x 38 hours x $29.04)
The Casual employee, doing the same hours as a permanent employee receives $5,800 per year more than the permanent employee.
If the casual employee has 10 sick days in the year, in addition to 4 weeks holiday, their annual income would reduce to: $50,761.92
(46 weeks x 38 hours x $29.04)
The permanent employee would still receive the same annual total, as they are entitled to sick pay for up to 10 days per year (Full-time employees).
In this situation, the casual employee would only receive $3,600 more than the permanent employee.
www.fairwork.gov.au/leave/sick-and-carers-leave/paid-sick-and-carers-leave#how-much