Currently, an employee is regarded as a casual employee if they accept an offer of employment on the basis that “the employer makes no firm advance commitment to continuing and indefinite work according to an agreed pattern of work.”

This has been supported by the High Court which reinforced that the terms of a contract of employment are key in determining whether the employment is casual or permanent in nature.

The Federal Government has announced proposed changes to this. It wants employees which work permanent hours, regardless of the terms of their contract, to have the option to convert to full-time work if they so prefer.

According to the government, it wants to ‘close a loophole’ and ‘provide job security’ where an employee works regular hours even though they are classified in their contract as a casual employee.

The MTA however envisages possible ramifications. For example, it could prevent or discourage a business from offering a causal employee predictable or regular hours of work.

The MTA will consult with members on what such a change may mean for your business. You can provide your views on the matter. (Link: mtaadvocacy@mtasant.com.au)

The proposed industrial relations changes are set to be introduced to Parliament later this year and we will work with our national body, the Motor Trades Association of Australia (MTAA), to formulate a policy response and advocate on behalf of the automotive industry.

The MTA’s dedicated Workplace Relations Team is also available at wr@mtasant.com.au or on 8291 2000 to answer any questions you may have for your business.