Casual Employment: New Rules Now in Effect from August 2025

If you employ casual staff, important changes to the law took effect on 26 August 2025. These changes affect small businesses and how casuals can move into permanent roles.

What is Changing?

1. Employee Choice Pathway

From 26 August 2025, casual employees in small businesses can now ask to become permanent employees.

• To be eligible, the casual must have worked for you for at least 12 months.

• They must also believe they no longer meet the definition of a casual.

If they want to make the change, they need to give you a written notice.

2. Your Responsibilities as the Employer

When you receive a notice from a casual employee:

• You need to talk with them about the request.

• You must reply in writing within 21 days.

• Your response should say if you accept or refuse the request.

If you accept, your response needs to include:

• Whether they will be full-time or part-time.

• The agreed hours of work.

• The date the new arrangement will begin (usually from the next pay period).

Casual Employee Entitlements

Casual employees do not get paid annual leave or sick leave, but they do have:

• A casual loading (usually 25%) to make up for missing out on leave entitlements.

• Unpaid carer’s leave, compassionate leave, and community service leave.

• 10 days of paid family and domestic violence leave each year, the same as permanent staff.

What You Should Do Now

• Review your current casual workforce and check if anyone might soon be eligible to request permanent employment.

• Update your policies and templates so you can respond correctly to requests.

• Talk with your team about what the “right to disconnect” means in your workplace.

• Make sure managers and supervisors are clear on how to handle these changes.

The Fair Work Ombudsman has a detailed Guide to Casual Employment that covers entitlements, FAQs, and templates you can use.

Disclaimer: This article is intended to provide general guidance and is not specific advice. We encourage you to seek tailored advice for your circumstances.