Casual Workers in Australia.

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).


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In August 2020 there were 2.3 million casual employees. (22% of all employees).

Sources:
abs.gov.au/…/aug-2022

abs.gov.au/…/aug-2021

abs.gov.au/…/aug-2020

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.

theconversation.com

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

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