Casual conversion in Australia now works through the 'employee choice pathway'. A casual who's been employed for at least 6 months, or 12 months with a small business, can give written notice that they want to become permanent if they believe they no longer fit the definition of a casual. The employer must consult them and reply in writing within 21 days, and can only refuse for specific reasons.
The old employer-led casual conversion rules were replaced on 26 August 2024, and the last transitional arrangements ran out on 26 August 2025. So if you're reading older guidance about employers making offers of casual conversion, it's describing the old system. Here's how the current rules work, from the Fair Work Ombudsman, as of October 2026.
Who can give notice
| Requirement | Detail |
|---|---|
| Length of employment | At least 6 months, or 12 months if the employer is a small business |
| Belief about status | The employee believes they no longer meet the definition of a casual employee |
| Form | Written notice to the employer |
| Blocked if | There's an ongoing dispute about employee choice, or in the last 6 months the employer refused a previous notice or a dispute was resolved |
| Earlier service | Employment before 26 August 2024 doesn't count towards eligibility |
Any casual can still move to permanent work at any time if both sides simply agree. The pathway matters when they don't.
What makes someone a casual now
Fair Work's definition turns on two things: there's no firm advance commitment to ongoing work, and the employee is entitled to a casual loading or a specific casual pay rate. Whether there's a firm advance commitment depends on the real substance of the relationship and factors including:
- Whether the employer can offer or not offer work, and whether that's happening.
- Whether the employee can accept or reject work, and whether that's happening.
- Whether future work of the same kind is reasonably likely.
- Whether full-time or part-time employees do the same work.
- Whether there's a regular pattern of work.
Here's the sourced insight that trips both sides up: a regular pattern of work on its own doesn't make someone permanent. Fair Work says an employee with a regular pattern may still be a casual if there's no firm advance commitment to ongoing work. No single factor decides it.
How the employer must respond
- Consult the employee first, including whether they'd be full-time or part-time, their hours and when the change would start.
- Reply in writing within 21 days of receiving the notice, accepting or not accepting.
- If accepting, state the new status, the new hours and the start date.
- The change takes effect from the first full pay period after the response, unless you both agree another day.
Fair Work's example: Mariana, a casual cleaner with 9 months' service, is rostered 8 am to 1 pm, Monday to Friday, every week, her employer has always been able to offer her work, more work is likely, and part-time staff do the same job. She gives written notice, her manager discusses it with her, and he accepts in writing: she becomes part-time in two weeks on the same hours.
The only reasons an employer can refuse
| Ground | What it covers |
|---|---|
| Still a casual | The employee still meets the casual definition |
| Fair and reasonable operational grounds | Substantial changes to how work is organised, significant impacts on the business, or substantial changes to conditions to stay compliant with an award |
| Legal recruitment rules | Accepting would breach a recruitment or selection process required by law |
A refusal must be in writing with the reasons. If you can't agree, Fair Work points to its workplace problem process and then the Fair Work Commission for disputes.
Protections for casuals
An employer can't cut or vary a casual's hours, change their pattern of work or end their employment to avoid the obligations or the employee's right to change. Casuals are also protected from adverse action for exercising the workplace rights to give notice, get a written response and take part in a dispute. Fair Work cites sections 66A to 66M of the Fair Work Act 2009 as the source of these rules.
If a casual does convert, they'll stop getting the casual loading and gain paid leave instead; our guides to the National Employment Standards and annual leave loading explain what permanent staff get.
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For small businesses
The longer 12-month wait applies if you're a small business, and you can't receive a notice at all until then. Before you reply to a notice, check the casual definition honestly against how the person really works. If they've had the same weekly roster for months and you expect that to continue, refusing on 'still a casual' grounds is hard to defend. Fair Work publishes a checklist and response template for employers.
The verdict
The employee choice pathway puts the casual in charge of starting the conversation, and gives the employer 21 days and a short list of reasons to say no. If you're a casual with a steady roster and ongoing work, it's worth sending the notice. If you're the employer, consult, reply in writing on time, and only refuse if one of the listed grounds fits.
Frequently asked questions
What is casual conversion in Australia?
The process for a casual employee to become permanent. Since 26 August 2024 it works through the employee choice pathway, where an eligible casual gives written notice to the employer.
When can a casual ask to become permanent?
After at least 6 months' employment, or 12 months with a small business, if they believe they no longer meet the casual definition. Both sides can also agree to a change at any time.
How long does an employer have to respond to a casual conversion notice?
21 days, in writing, after consulting the employee.
Does a casual lose their loading after converting?
Yes. The casual loading is a higher pay rate for being a casual, so it stops once someone becomes permanent. In return, Fair Work says full-time and part-time employees have a firm advance commitment to ongoing work, are entitled to paid leave, and must give or receive notice to end the employment.
Can an employer refuse casual conversion?
Only if the employee still meets the casual definition, on fair and reasonable operational grounds, or where accepting would breach a recruitment process required by law.
