What is a casual employee?
A casual employee is one with no firm advance commitment to ongoing work, defined by the real substance of the relationship under the Fair Work Act.
A casual employee is someone employed on the basis that there is no firm advance commitment to continuing and indefinite work. They are usually offered work shift by shift and can accept or decline shifts. In return for missing out on paid leave and notice, they receive a casual loading (usually 25%).
Since the 2024 Closing Loopholes reforms, casual status is decided by the real substance, practical reality, and true nature of the employment relationship under section 15A of the Fair Work Act 2009 — not just the label written in the contract. A worker who is treated like a permanent employee in practice may not be a genuine casual.
Key facts
- •Defined in section 15A of the Fair Work Act 2009
- •Since the 2024 reforms, casual status turns on the real substance of the relationship, not just the contract label
- •Casuals receive a casual loading (usually 25%) instead of paid leave and notice
- •Eligible casuals can request to move to permanent employment under the casual conversion (employee choice) pathway
- •Casuals still receive superannuation and accrue unpaid carer's and parental leave
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Casual Conversion ToolFrequently asked questions
Can I be a casual if I work the same shifts every week?
Possibly not. Since the 2024 reforms, if your work is regular, systematic and there is a firm commitment to ongoing work in practice, you may actually be a permanent employee regardless of what your contract says. The Fair Work Ombudsman can help assess your situation.
Do casual employees get any paid leave?
No. Casual employees do not accrue paid annual leave or paid personal (sick) leave. The casual loading is paid to compensate for missing these entitlements. They do, however, get unpaid carer's leave and superannuation.
FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is 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.