It is too early to gauge how the Closing Loopholes (No.2) Act 2024, which changes the definition of casual employment, is impacting businesses. However, anecdotal evidence indicates a shift towards permanent employment or delays in engagement, despite market uncertainty and pressing staffing requirements.

Whichever choices Australian employers are currently making, it is clear many are grappling with the reality of meeting business needs while ensuring compliance with this new employment legislation.

Nick Wakeling, National Workplace Relations Manager for Bayside Group & Acclaimed Workforce explains he has been having similar conversations with numerous Human Resources and Hiring Managers.

“Many organisations have opted for the traditional model of casual employment in the past because it provides the greatest flexibility. Yet depending on the circumstances, this was not necessarily the best option even prior to recent changes to the definition of casual employees,” says Nick. “Understanding this, we’ve developed a range of engagement options to optimise the effectiveness of contingent labour on-site, with the benefit of providing better outcomes for employers and employees.”

For Acclaimed Workforce, a recruitment and labour hire company specialising in manufacturing, warehouse and logistics, wine and administration, the goal is always to present engagement options that are relevant.

What is the definition of Casual Employment?

There are more conditions in place under the new definition of casual employment. When a person starts employment the employment relationship must have no firm advance commitment to ongoing work, taking into account a number of factors. Also, the worker must be entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.

Whether there is a firm advance commitment needs to be assessed on the real substance, practical reality and true nature of the employment relationship, and other factors including but not limited to:

• the employer can offer or not offer work to the employee (and whether this is happening)
• the employee can accept or reject work (and whether this is happening);
• it's reasonably likely there will be future work available of the kind the employee usually performs in the employer’s business, based on the nature of the business;
• there are full-time or part-time employees performing the same kind of work in the employer’s business as the work the employee usually performs; and
• the employee has a regular pattern of work even if it changes over time due to, for example, reasonable absences because of illness, injury or other leave.

Casual Employment

Casual employment is still a viable option for employers managing fluctuating workloads, changing shift requirements or short-term projects. However, it is essential that there is no requirement for a firm commitment from either party.

Allowing for quick onboarding, casual employment also has a notice period for termination of typically 24 hours, although this can be extended by mutual agreement. Casuals will be paid an hourly rate with applicable overtime depending on the relevant award.

This is beneficial when your business requires flexibility and employees are looking to make a quick dollar. However, the downsides can be the cost to employers and a lack of stability for employees, which may make a role less appealing. It also is not the most effective solution to contingent labour for medium to long-term projects.

Within Acclaimed Workforce’s areas of specialisation, casuals can still be a viable option, particularly when taking into consideration seasonal or sporadic shift work. However, for more experienced professionals or administration staff, alternative engagement options may be more effective.

Alternative Engagement Options

For longer-term projects or temporary requirements, Acclaimed Workforce utilises several options to enable our clients to engage professional individuals and teams with the relevant capabilities for longer periods.

These include on-hired permanent employment (ongoing and for a maximum-term) and independent contracting to help companies achieve their goals and comply with employment legislation in Australia. It is essential that this is implemented correctly to reduce the risks associated with contingent employment.

“Right now, we’re seeing some employers take unnecessary risks because their labour hire providers may not understand the nuances of the new definition and continue to provide options in the same format as before,” says Nick.

Acclaimed Workforce’s alternative contingent workforce models can provide longer-term flexible employment options for both agility and cost-effectiveness. 

Through our affiliate company, Bayside Group, we are also able to sponsor international talent with skill sets not available in Australia as a holder of an On-hired Labour Agreement. Enables the hiring of skilled international candidates on Temporary Skill Shortage visa (subclass 482), ensuring access to specialised skills. Full-time and part-time employment is an option, but only for the duration of the specified term.

As a business, we’ve worked in this space for almost 50 years and our Workplace Relations team is in place to assist our clients to comply with employment legislation and minimise risk.

We take the time to understand what you are trying to achieve and present relevant options, highlighting advantages, risks, and costs so you can make informed decisions. To learn more, contact us today.