Factsheet | Converting from Casual to Permanent
A casual employee can change to full-time or part-time employment at any time if the employer and employee both
agree to it. However, employers also need to be aware that in some Awards, a casual employee, who has been
engaged on a regular and systematic basis for a specific period of time, may have the right to elect or even be
offered to have their contract of employment reviewed to provide the option of permanent employment.
Some awards that contain a process for converting casual employees to permanent include:






Vehicle Manufacturing, Repair, Services and Retail Award 2010
Waste Management Award 2010
Manufacturing and Associated Industries and Occupations Award 2010
Road Transport and Distribution Industry Award 2010
Building and Construction General On-Site Award 2010
Hospitality Industry (General) Award 2010
Change in pay rate
For casual employees, you will currently be paying an hourly rate that would, more than likely, include a casual
loading of approximately 25%. This loading is designed to allow for leave entitlements that casual employees do not
receive. Therefore, casual employees that convert to a permanent employment arrangement need to understand
that their hourly rate will reduce. For example, for an employee engaged under the Waste Management Award 2010,
Level 5, the difference would be:
Current Casual Hourly Rate
Permanent Hourly Rate
$23.89
$19.11
Over-time
As a permanent employee, some awards also include overtime that is calculated on the permanent rate, as opposed
to casual overtime rate, which may include an additional loading – which if they convert, will no longer apply.
Permanent entitlements
For permanent employees, to off-set the reduced hourly rate they will start to accumulate leave as follows:
 Annual Leave: 4 weeks per annum (calculated based on the hours you work each week)
In some cases, they will also be entitled to be paid 17.5% loading whilst on any annual leave.
 Personal Leave: Pro rata of 10 days per annum (calculated based on the hours you work each week)
 Long Service Leave
They will also be entitled to:
 Compassionate Leave: All employees are entitled to 2 days compassionate leave each time an immediate
family or household member dies or suffers a life threatening illness or injury.
 Public Holidays
 Maternity & Paternity Leave
What next?
Check the relevant award that you engage your employees under and identify if there is a ‘Casual Conversion’ clause.
Review the details of the clause and ensure that you are compliant with its requirements.
If you have any questions, do not hesitate to discuss these with us at HRM, where we can provide specific advice for
your business.
E. [email protected]
W. www.hrmcc.com.au
P. 1300 962 258
© HRM Contracting and Consulting 2014