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Casual employee conversion (employee choice) review checklist

Casual conversion was overhauled by the Closing Loopholes No. 2 Act in 2024. Employees now drive the process through an employee choice notice. This checklist is for Australian employment lawyers advising employers and employees on the new framework.

In short

This is a 12-step checklist for reviewing the new employee choice casual conversion framework under the Fair Work Act 2009 (from 26 August 2024) — covering the s 15A casual definition, employee choice notice, employer response, and FWC dispute process.

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12-step checklist

The checklist

1

Confirm the worker is a casual employee

Apply the new s 15A real substance test — absence of firm advance commitment and casual loading payable.

Fair Work Act 2009 (Cth) s 15A
2

Check the 6 or 12 month qualifying period

Confirm the employee has been engaged for at least 6 months (12 months for small business employers).

Fair Work Act 2009 (Cth) s 66AAB
3

Identify the trigger for conversion

Under the 2024 framework, conversion is triggered by an employee choice notice — not employer offer.

Fair Work Act 2009 (Cth) s 66AAC
4

Receive and diarise the employee notice

Record the date of the employee choice notice — the employer has 21 days to respond.

Fair Work Act 2009 (Cth) s 66AAD
5

Consult the employee on the notice

The employer must consult with the employee before making a decision to accept or reject.

Fair Work Act 2009 (Cth) s 66AAD(3)
6

Identify a fair and reasonable operational ground to refuse

Employers can only refuse on specified grounds including the s 15A definition still being met or fair and reasonable operational grounds.

Fair Work Act 2009 (Cth) s 66AAD(4)
7

Provide a written response within 21 days

The employer’s written response must accept, propose a different conversion, or refuse with reasons.

Fair Work Act 2009 (Cth) s 66AAE
8

Determine new employment type and hours

If accepted, agree the new part-time or full-time hours and start date in writing.

Fair Work Act 2009 (Cth) s 66AAE(3)
9

Issue a new contract of employment

Prepare a new permanent contract reflecting classification, hours, and entitlements under the NES.

Fair Work Act 2009 (Cth) Pt 2-2 (NES)
10

Address pay adjustment and casual loading

Stop casual loading on conversion and adjust the base rate. Do not reduce total remuneration below the NES.

Fair Work Act 2009 (Cth) s 62
11

Update the Casual Employment Information Statement

Provide the updated CEIS at the start of engagement, at 6 and 12 months, and on each anniversary as required.

Fair Work Act 2009 (Cth) s 125B
12

Plan for FWC dispute resolution

If the employee disputes the refusal, prepare for FWC conciliation and, if needed, arbitration under s 66M.

Fair Work Act 2009 (Cth) s 66M
When to use

When this checklist applies

Use when any casual employee approaches 6 or 12 months of engagement, or on receipt of an employee choice notice.

Common pitfalls

  • Using the pre-August 2024 employer-offer framework
  • Missing the 21-day response window — triggers FWC jurisdiction
  • Refusing on non-specified grounds — unlawful
  • Double-counting casual loading after conversion
  • Not giving the CEIS at required intervals
Use with Quillio

Run this checklist on a real matter

Quillio runs the s 15A test, drafts employee choice responses, and prepares conversion contracts aligned to the 2024 rules on a live matter. See /practice-areas/employment-lawyers or start a free trial.

General guidance for casual conversion under the 2024 employee choice framework. Adapt for small business employers and award coverage.

Use this checklist on your matter.

Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.

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