'I don't think anyone is forecasting that there is going to be large numbers of people uptaking this'
Recently, the Australian Industry (Ai) Group expressed concern about the government's proposed changes to casual work.
"Employers will be understandably alarmed at the prospect of a radical new restriction on the ability to engage casual employees to work regular and predictable hours," said Ai Group chief executive Innes Willox.
But are these concerns overblown?
It’s anticipated the impact will be much less than initial figures indicate, says Dr Elliroma Gardiner, senior lecturer and HR specialist at the Queensland University of Technology (QUT).
Under the suggested change, employers will be required to offer casuals who work regular hours a permanent job.
“The government is expecting 850,000 workers to be affected by this, but the percentage of people who will actually opt to change is likely to be in the single digits,” says Gardiner.
There is a great deal of expectation that most casual workers will prefer to stay working as casuals in order to keep receiving the 25% loading on income.
“For most employees, having more money in their hand is going to be of more value than having entitlements or having a permanent position. Of course, there will be some people who will prefer that permanent work, but I don't think anyone is forecasting that there is going to be large numbers of people uptaking this.”
Casuals an important source of labour in Australia
For many organisations in Australia, casual workers are an important source of labour, providing flexibility and the ability to hire people when there's demand. This is particularly the case in hospitality, tourism, retail and construction.
“This really helps businesses be more competitive,” says Gardiner. “It’s important though to make sure each of the parties understands what the contract is that they're getting into and that employers ensure that if a casual worker doesn’t want to do a shift, that the worker’s not penalized.”
The proposal does not involve back pay and the plan is for small businesses - those with under 15 employees - to be exempt.
“The current law allows employers to refuse a request, but they have to explain in writing why they can't fulfil that request, and it has to be denied for a set of reasons - for instance, if they anticipate that the hours will shrink, or their job will no longer exist,” says Gardiner.
The proposed change strengthens protections for those working casually but who want permanency. It’s also possible the reforms could allow workers to request a reassessment, every six months, if their conversion has been denied.
Confusion as current laws already set requirements for casuals
Confusion has been created because the current workplace laws already require employers to offer and genuinely consider making casual employees more permanent, says Gardiner. To qualify, that person needs to work regular hours for six months, and have been employed for 12 months.
“Perhaps the government feels like the employment contract of casuals is limiting the uptake or the availability of casual workers to truly be made permanent,” she says.
“Moving into a permanent role could be more attractive to those with ongoing financial responsibilities - perhaps those looking to secure a home loan, or taking care of dependants - whereas for students and also those people nearing retirement, flexibility could be seen as a priority.”
In an economy with low unemployment and high job mobility, with employers finding it harder to retain good staff, having more permanent staff on a part-time basis, rather than a casual basis, might actually be beneficial, adds Gardiner.
“If you have a casual employee, but you treat them like a permanent employee working full-time, and they're important to your organization, they could just decide to leave with absolutely no notice.
“This is where HR has a really important role to play for businesses - understanding workforce planning, the options and obligations. That option employers have when hiring people right now is actually a critical function of businesses.”
Further details are expected to be revealed later in the year.
