Casual to Permanent Conversion: Your Right to Request in 2025-26
Casual employees can request permanent conversion after 12 months. Learn the new rules under the Closing Loopholes Act, employer obligations, and what changes.
The right to request casual conversion
Under the Fair Work Act, casual employees have the right to request conversion to permanent (full-time or part-time) employment after a qualifying period. For non-small business employers (15 or more employees), casual employees can notify their employer that they believe they are no longer a casual and request conversion after 6 months of employment (changed from 12 months under the 2024 reforms). For small business employers (fewer than 15 employees), the employee can make the request after 12 months. The employee must believe, on reasonable grounds, that their employment no longer meets the definition of casual employment — meaning there is now a firm advance commitment to continuing and indefinite work according to an agreed pattern. The employer must respond within 21 days.
The new definition of casual under the Closing Loopholes Act
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 introduced a significant change to how casual employment is defined. Previously, it was based primarily on the terms of the employment contract at the time of offer. Under the new definition, which took effect on 26 August 2024, a person is a casual employee only if there is an absence of a firm advance commitment to continuing and indefinite work according to an agreed pattern of work, based on the real substance, practical reality, and true nature of the employment relationship. This means that even if your contract says you are casual, if in practice you work regular, predictable hours with an ongoing expectation of continued employment, you may no longer be a casual for the purposes of the law.
Employee-initiated requests: how the new pathway works
The 2024 reforms shifted casual conversion from an employer-offer model to an employee-choice model. Previously, employers were required to proactively offer conversion. Now, it is the employee who initiates the process by giving written notification to their employer. The employee's notification must state that they believe their employment no longer meets the definition of casual and that they want to convert to full-time or part-time permanent employment. The notification must be in writing. The employer then has 21 days to either accept or refuse the request. If the employer disputes the notification (i.e., disagrees that the employment is no longer casual), either party can apply to the Fair Work Commission to resolve the dispute. The FWC can make orders about the employee's status.
Reasonable grounds to refuse
An employer can refuse a casual conversion request, but only on specific reasonable grounds. These include: the employee still meets the definition of casual (there genuinely is no firm advance commitment), the conversion would require a significant adjustment to the employee's hours of work to be employed as full-time or part-time, or known or reasonably foreseeable business changes would mean the employee's position would not continue or the hours would change significantly within the next 12 months. The employer must provide a written response within 21 days setting out the reasons for refusal. The response must include information about the employee's right to dispute the refusal through the Fair Work Commission. Vague or generic refusals are not sufficient — the grounds must be genuine and specific.
What changes when you convert?
Converting from casual to permanent employment is a significant change. You will lose the casual loading (typically 25%), which means your base hourly rate will decrease. However, you gain: paid annual leave (4 weeks per year), paid personal/carer's leave (10 days per year), paid compassionate leave (2 days per occasion), entitlement to notice of termination and redundancy pay, access to flexible working arrangement requests, and parental leave entitlements. Your overall hourly cost to the employer is designed to be broadly comparable — the loading was always intended to compensate for missing entitlements. Your period of casual employment counts as service for the purposes of notice periods, redundancy pay, and parental leave eligibility, provided it was regular and systematic.
Casual Employment Information Statement
Employers are required to give every new casual employee a Casual Employment Information Statement (CEIS) as soon as possible after the employee starts. This document, published by the Fair Work Ombudsman, explains the definition of casual employment, the right to request conversion (the employee choice pathway), the role of the Fair Work Commission in resolving disputes, and other relevant rights. Small business employers must give a modified version (the Small Business Casual Employee Information Statement). The CEIS must also be given to existing casual employees at the 6-month mark (non-small business) or the 12-month mark (small business). Failing to provide the CEIS is a contravention of the Fair Work Act and can attract penalties.
Practical tips for casual employees considering conversion
Before requesting conversion, consider these factors. First, calculate the financial impact: compare your current casual rate (with loading) against the permanent base rate plus the value of accrued leave. Use our Casual vs Part-Time Comparison tool for this analysis. Second, document your work pattern — keep records showing that you have been working regular, consistent hours over an extended period, as this supports your claim that the relationship is no longer genuinely casual. Third, check your award, as some awards have specific rules about casual conversion that may supplement or differ from the general provisions. Fourth, seek advice from the Fair Work Ombudsman (13 13 94) or your union if you have one. Fifth, be aware that your employer cannot treat you adversely (reduce hours, terminate employment) because you have exercised or plan to exercise your right to request conversion — this would be a general protections violation.
Try these free tools
Official resources
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.