Casual Employment Changes: What to Do When an Employee Gives Notice to Convert

A Caday Workplace Relations Guide

From 26 August 2025, eligible casual employees working for a small business employer gain a new right: they can formally request to change to full‑time or part‑time employment under the employee choice pathway.

This change forms part of the broader reforms to casual employment and aims to provide greater certainty and stability for employees whose working patterns no longer reflect true casual engagement.

For employers, especially small businesses, it’s essential to understand what a notice from an employee means, how to respond, and the steps you must follow to remain compliant.

📝 What Is an Employee Notice to Convert?

An employee notice is a written request from an eligible casual employee asking to change their employment status to:

• Full‑time, or

• Part‑time

This notice must be provided in writing, and once received, it triggers a formal process that employers must follow.

👤 Who Is an “Eligible Casual”?

An employee may be eligible to request conversion if they:

• Have been employed for the required minimum period

• Have a regular pattern of hours that could continue as full‑time or part‑time

• Meet the eligibility criteria set out in the Fair Work Act and any applicable award

Small business employers must carefully assess eligibility before responding.

📬 Employer Obligations When a Notice Is Received

When an employee submits a notice to convert, employers must follow a structured response process, including:

• Acknowledge the notice

• Assess eligibility

• Provide a written response

You may refuse a request, if it is based on reasonable business grounds, such as significant cost, major changes to operations, or the employee’s hours not being able to continue in a non‑casual pattern.

⚖️ Why This Matters for Small Business

These changes introduce new compliance obligations for small business employers.

Failing to follow the correct process — or missing deadlines — can expose employers to disputes, claims, or compliance action.

A clear, documented approach ensures:

• Legal compliance

• Fair and transparent decision‑making

• Stronger workforce planning

• Reduced risk of conflict or misunderstanding

🤝 Need Support Navigating Casual Conversion?

Caday Workplace Relations can help you:

• Assess employee eligibility

• Draft compliant response letters

• Update employment contracts

• Review your casual workforce arrangements

• Implement clear internal processes for managing notices