KEEPING UP TO DATE
Federal Court confirmed Entitlements of Casual Employment
5 July 2020
Recently there was a lot of publicity about the Federal Court case in which a casual was awarded back payment for Annual and Personal Leave. This led to concern that all casual employees could potentially ‘double dip’ and receive highly hourly rates as well as leave entitlements. There was a lot of press about this and many of our clients were extremely concerned about cost spiralling out of control.
However, the reality of the case was very different. Casual employment entitlements have always been that if a casual worked consistent hours over a period of more than six months’ they are entitled to be made a permanent employee. This was a situation where the business didn’t understand and apply the casual to permanent employment transition process correctly.
Roy Morgan’s special SMS survey of 881 Australian businesses recently revealed over a third (34.5%) are going to be affected by the Federal Court’s ruling on the entitlements of casual employees.
It’s also concerning that Small and Medium sized businesses with 5-199 employees will be impacted the most. A vast number of small businesses (54.5%) with 5-19 employees and medium businesses (54.5%) with 20-199 employees say they will be affected by the ruling in some way with the majority needing to better understand what makes a casual position casual and when to transition employees to a permanent position. Source: Roy Morgan, Press Release Morgan Poll Review Unemployment June 03 2020.
It is important for SME employers to know how to confirm whether or not an employee is a true casual.
Would you like peace of mind and a seemless casual to permanent employee transition or the ability to maintain casuals without the risk of paid leave entitlements? We can assist.
“From complexity with little value to streamlined and adding real value to our decision-making process. What a journey we have been on together. We are excited about the next steps and continuing the improvements.”
– Kate Young, Executive Officer
St George Community Transport
Impact HR Customer
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