Letter Informing that Employer Will Not Offer Casual Conversion

Until 26 August 2024, the following requirements apply:

Within 21 days of a casual employee's first work anniversary, employers are required to either make a written offer of conversion to the casual employee; or advise the employee in writing that the employer is not making an offer of conversion and tell them why.

An offer of conversion needs to be made if:

• the employee has been employed by the employer for a period of 12 months ending on the day the assessment is made;

• during at least the last 6 months the employee has worked a regular pattern of hours which, without significant adjustment, the employee could continue to work as a full-time or part-time employee; and

• the employer does not have reasonable grounds not to make an offer.

This requirement does not apply to employers that are small businesses with fewer than 15 employees at a particular time.

Employees who were casual before 26 August 2024 will remain casual under the new definition unless they convert to permanent employment.

The way the new conversion provisions apply is as follows:

• For casuals employed before 26 August 2024, the previous conversion requirements continue to apply for 6 months, or 12 months if employed by a small business employer. Following that point, the new requirements apply.
• For casuals employed on or after 26 August 2024, the new requirements apply.

Following 26 August 2024, the new requirements apply:

Employers are no longer required to make an offer of casual conversion. Rather, the employee is entitled to notify their employer of their intention to convert to a permanent role where the employee has been employed for at least 6 months, or 12 months if working for a small business with fewer than 15 employees.

Employees can’t notify their employer of their intention to change to permanent employment if they:

• are currently engaged in an ongoing dispute with their employer about casual conversion, or
• in the last 6 months:

The employer can refuse the change if any of the following apply:

• the employee still meets the definition of a casual
• there are fair and reasonable operational grounds for not accepting the notification, including:
• accepting the change means the employer isn’t complying with a recruitment or selection process required by law.

Use this letter if:

• the employee has been employed by the employer for a period of 12 months ending on the day the assessment is made;

• during at least the last 6 months the employee has worked a regular pattern of hours which, without significant adjustment, the employee could continue to work as a full-time or part-time employee; and

• the employer does not have reasonable grounds not to make an offer.

• You want to notify a casual employee that they will not be converted into a permanent position.

• You want to be compliant with the recent updates to the Fair Work Act 2009.

What does this letter cover?

• A letter notifying the employee that they will not be converted into a permanent role

• The reason for not converting the employee into a permanent position

Further information:

• Letter of Offer of Employment

• Can an Offer of Employment be Withdrawn?