Casual Conversion: Your Right to Request Permanent Employment

The Power Has Shifted to You

If you are a casual worker in Australia, something significant has changed.

You no longer have to wait for your employer to offer you permanent employment. Under the new “employee choice pathway,” you can request conversion yourself. This shift puts you in control of your employment future.

Here is everything you need to know.

What Is the Employee Choice Pathway?

The employee choice pathway is a new system that allows eligible casual employees to notify their employer in writing that they want to become a permanent (full-time or part-time) employee.

This replaced the old system where employers were required to offer conversion after 12 months. Now, the initiative sits with you.

Key dates:

26 February 2025: The employee choice pathway began for employees at larger businesses (15+ employees)
26 August 2025: The pathway extended to employees at small businesses (fewer than 15 employees)

This means every casual worker in Australia now has access to this pathway, regardless of employer size.

Are You Eligible?

You can notify your employer that you want to convert to permanent employment if you meet these requirements:

For Employees at Larger Businesses (15+ employees)

You have been employed for at least 6 months
You believe you no longer meet the definition of a casual employee

For Employees at Small Businesses (fewer than 15 employees)

You have been employed for at least 12 months
You believe you no longer meet the definition of a casual employee

What Does “No Longer a Casual” Mean?

Under the Fair Work Act, a casual employee is someone whose employment arrangement does not include a firm advance commitment to continuing and indefinite work according to an agreed pattern.

In plain terms: if you have been working regular, predictable shifts for months, you may no longer fit the casual definition. You might be a permanent employee in all but name.

Signs you might qualify:

You work the same days and hours most weeks
Your roster is predictable and follows a pattern
You have an ongoing expectation of continued work
Your employer relies on you being available at set times

How to Request Conversion

The process is straightforward:

Step 1: Put It in Writing

You must provide your employer with written notice that you want to change from casual to permanent employment. This can be an email, letter, or any written format.

Your notice should include:

Your name and position
That you are giving notice under the employee choice pathway
Whether you want to become full-time or part-time
The date

Step 2: Wait for the Response

Your employer must respond in writing within 21 days of receiving your notice.

Before responding, your employer is required to consult with you about the notice. This means they need to discuss it with you, not just make a decision in isolation.

Step 3: Understand the Outcome

Your employer can either:

Accept your notice (you become permanent)
Not accept your notice (but only on specific grounds)

If accepted, your employment changes to permanent from the date specified in your employer’s response.

When Can Your Employer Refuse?

Your employer cannot simply refuse because they prefer you to stay casual. They can only decline your notice on specific grounds:

Fair and Reasonable Operational Grounds

Your employer may refuse if accepting would require:

Substantial changes to the way work is organised in their business
Significant impacts on the operation of the business
Substantial changes to your employment conditions that would be necessary

What This Actually Means

An employer saying “we just prefer casuals” is not a valid reason. They need to demonstrate genuine operational reasons why conversion would substantially impact their business.

Examples that might be valid grounds:

Your role is genuinely project-based and will end soon
The business is undergoing significant restructuring
Your hours would need to reduce substantially to offer permanent employment

Examples that are not valid grounds:

“We like the flexibility of casual staff”
“It would cost more to pay leave entitlements”
“Other staff are casual too”

What If Your Employer Refuses?

If your employer does not accept your notice, you have options.

Try to Resolve It at the Workplace

First, attempt to resolve the matter directly with your employer. Ask them to explain their reasons and discuss whether there is a path forward.

Lodge a Dispute with the Fair Work Commission

If you cannot resolve it internally, you can lodge a dispute with the Fair Work Commission. The Commission can:

Conciliate - Help you and your employer reach an agreement
Arbitrate (in some circumstances) - Make a binding decision

This is a formal process, but it exists to protect your rights.

Important Restriction

You cannot submit another conversion notice if:

You are currently in an ongoing dispute about conversion
In the last 6 months, your employer refused a previous notice
In the last 6 months, you resolved a dispute with your employer about this issue

This prevents repeated requests, but it also means you should be prepared before submitting your first notice.

Why Permanent Employment Matters

Converting from casual to permanent is not just about job security. It affects your total compensation.

What You Gain as a Permanent Employee

Paid annual leave (4 weeks per year)
Paid personal/carer’s leave (10 days per year)
Paid compassionate leave
Paid public holidays
Notice of termination (and sometimes redundancy pay)
Predictable income

What You Give Up

Casual loading (typically 25% on top of base rate)

The trade-off is real. Casual loading is designed to compensate for the lack of leave entitlements. But for many workers, the security and benefits of permanent employment outweigh the higher hourly rate.

Before You Submit Your Notice

Consider these factors:

Check your hours - Have they been regular and predictable?
Review your payslips - Confirm you are receiving casual loading currently
Understand the trade-off - Your hourly rate may decrease, but you gain leave entitlements
Document your pattern - Keep records of your shifts over the past 6-12 months
Know your employer size - This affects your eligibility period

Your Choice, Your Future

The employee choice pathway exists because casual work is not supposed to be permanent by default. If you are doing the work of a permanent employee, you deserve the entitlements of one.

You do not need your employer’s permission to explore whether you qualify. You have the right to submit a notice if you meet the eligibility requirements.

If you want to understand your full entitlements, including whether your casual loading is being paid correctly right now, Justiico can help. Our wage audit service analyses your payslips against your Modern Award to identify any discrepancies.

Start Your Free Audit and take control of your pay.

Frequently Asked Questions

How long do I need to have worked to request conversion?

6 months for larger businesses (15+ employees), 12 months for small businesses (fewer than 15 employees).

Does my employer have to accept my request?

Not necessarily. They can refuse on fair and reasonable operational grounds, but they cannot refuse simply because they prefer casual employment.

Will I lose my casual loading?

Yes. Permanent employees do not receive casual loading. However, you gain paid leave entitlements.

Can I be fired for requesting conversion?

No. Taking action under your workplace rights is protected by law. Adverse action against you for requesting conversion would be unlawful.

What if my employer does not respond within 21 days?

If your employer fails to respond within the required timeframe, you may be able to lodge a dispute with the Fair Work Commission.