Dodging Double Pay: Casual Conversion Rules Every Venue Should Know
MAY 28,2025 | BUSINESS | By ADMIN
MAY 28,2025 | BUSINESS | By ADMIN
Note — general guidance only: Casual-conversion rules sit in the Fair Work Act (Part 2-2, Div 4A) and the Hospitality Award. Check the latest legislation or a workplace-relations adviser before altering contracts or rosters.
Under Australia’s National Employment Standards (NES), a casual who works a regular, systematic pattern for 12 months—without significant breaks—may be entitled to convert to permanent employment. That means paid leave and notice entitlements on top of roster stability. Miss the statutory deadlines and you risk paying both the casual loading and back-dated leave: the dreaded “double dip”.
• Double-pay risk:
If a court deems someone really a permanent, you can owe 25 % loading plus annual leave and sick leave for the same hours.
• Roster predictability:
Converted staff give you certainty for key shifts—Mother’s Day brunch? Sorted.
• Talent retention:
Permanent status with leave can stop rising stars jumping to competitors with “proper jobs”.
• Legal clock is ticking:
Every casual who hits 12 months starts the conversion timeline—paperwork silence can equal non-compliance.
Month 12 Eligibility Audit
Run a report the week before each hire’s 12-month anniversary. Flag anyone averaging regular hours and <10 day breaks.
21-Day Offer Window
You must make a written offer to eligible staff within 21 days—or record why not (e.g., hours dropping next season). No email? No compliance.
Response & Roster Alignment
Employee has 21 days to accept. If they do, adjust the roster template: add paid breaks, remove 25 % loading, and bank leave accrual from the conversion date, not retrospectively.
• Rotate “shoulder shifts”
Break the pattern gently—swap an 11 am–4 pm café shift for a 7 am prep every couple of weeks so hours stay casual-irregular (but still fair).
• Introduce seasonal contracts:
Offer true casuals 3-month peak contracts that lapse before 12 months; re-hire if needed. Keeps flexibility and clarity.
• Automate anniversary alerts:
Most rostering platforms let you tag start dates and push-notify managers 30 days out; use it so no one slips through.
• Hold a “conversion chat” toolkit session:
Train supervisors to explain pros/cons, forms and new roster expectations—avoids panic on the floor.
• 1 Mar 2024:
Alex starts as a Saturday–Sunday barista (Level 2 casual).
• 1 Sep 2024:
Roster expands to Fri–Sun—regular pattern begins.
• 15 Feb 2025:
Manager alert: 12-month mark approaching.
• 25 Feb 2025:
Written offer sent; café forecasts same trading levels.
• 15 Mar 2025:
Alex accepts. From 18 Mar 2025 roster shifts to permanent part-time, 19 hours/week, leave accrual starts, casual loading removed.
Casual conversion isn’t a trap—handled early, it’s a chance to lock in reliable talent and avoid headline-grabbing back-pay cases. Track anniversaries, document decisions and keep rosters dynamic; you’ll dodge double pay while strengthening your crew for the long haul.
ClubsHR is the perfect solution to help manage your venue. Our online staff management software will help you streamline staff communication and roster with confidence.
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