Does an employer still have to offer casual conversion in Australia?

No — the old rule requiring employers to offer conversion after 12 months was replaced by the 'Employee Choice' pathway under the Closing Loopholes reforms (from 26 August 2024, and 26 August 2025 for small business employers with fewer than 15 employees). Now it's the employee who notifies the employer in writing of their choice to convert, once they've been employed for at least 6 months (12 months for a small business employer) and no longer meet the casual definition. The employer must respond in writing within 21 days and can only refuse on specified grounds. An employer can still agree to convert a casual by mutual agreement at any time.

What conditions must a conversion offer include?

A compliant offer must specify whether the conversion is to full-time or part-time, the days/hours of work, the new base rate (without the 25% casual loading), the effective date of conversion, and a reasonable timeframe for the employee to respond (typically 14-21 days). Continuity of service from the start of the casual engagement must be retained.

Can an employee refuse a casual conversion offer?

Yes. The employee can decline a conversion offer and continue as a casual on their existing terms. Refusing does not affect their role, future eligibility for conversion, or the employer's obligation to continue providing work. The employer should record the refusal and consider whether the conversion offer becomes appropriate again at a later point.

What happens to the 25% casual loading on conversion?

The 25% casual loading does NOT continue after conversion to permanent employment. The casual loading exists to compensate for the lack of paid leave and other entitlements. As a permanent employee, those entitlements are provided directly. The new base rate should reflect the rate WITHOUT the loading. Employees often see a lower headline hourly rate after conversion, but receive paid annual leave, personal leave, public holidays, and notice of termination as offsets.

Are small business employers required to offer casual conversion?

Small business employers (fewer than 15 employees) are NOT required to offer casual conversion under the Fair Work Act 2009 amendments. However, small business employers may still receive a request for conversion from a casual employee, which they must respond to in writing. Small business employers may also voluntarily offer conversion — many do, to retain experienced casuals on more stable terms.

Casual Conversion Offer Letter (Australia 2026)

Free template letter for offering a casual employee conversion to permanent employment. Cites the Fair Work Act 2009 and lays out the pattern-of-work basis, new terms, and response process.

Last verified: 21 May 2026

Since 26 August 2024 (26 August 2025 for small business), the old employer-offer rule is replaced by the Employee Choice pathway: an eligible casual (6+ months, or 12 months for a small business) notifies the employer of their choice to convert. An employer can still offer or agree to convert by mutual agreement — this letter sets out compliant terms either way.

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What "regular pattern" means

The Fair Work Act doesn't define "regular pattern" precisely. Recent FWC and Federal Court decisions look for:

Same days of the week worked over multiple weeks
Similar hours each shift / each week
Predictability — the employee can reasonably expect the work to continue
Pattern observed over at least the last 6 months

Casual employees with a clearly regular pattern who haven't been offered conversion may have grounds to escalate via the Fair Work Ombudsman or the Fair Work Commission.

Reverse direction (employee → employer)

If you're a casual employee asking your employer to convert you to permanent, use the Casual Conversion Request letter generator instead.

Casual to Permanent in 2026: New Conversion Rights & How to Request It

Understand the new casual-to-permanent conversion rights in Australia for 2026. Learn about employee-initiated conversion, eligibility requirements, how to make a written request, employer grounds for refusal, and the financial implications of converting including losing casual loading but gaining leave entitlements.

Casual Conversion 2026: Your Right to Become Permanent After 6-12 Months

Understand your right to convert from casual to permanent employment in Australia. Covers the employee-initiated conversion right, eligibility periods, the written request process, employer refusal grounds, and FWC dispute resolution.

Casual to Permanent Conversion: Your Right to Go Full-Time

Understand your casual conversion rights in Australia for 2026. Learn when your employer must offer permanent employment, how to request conversion, and what to do if your employer refuses.

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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.

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Casual Conversion Offer Letter (Australia 2026)

Sender (employer)

Recipient (casual employee)

Conversion offer