“Employee Choice” Causal Conversion Process
“Employee Choice” Causal Conversion Process Soon in Place for All Employees at Small Businesses
Clubs SA members classed as a small business are advised that all their employees will soon be on the “employee choice” casual conversion process.
Small business means a business with less than 15 employees and any regular and systematic casuals are included in this count, but truly irregular casuals are not.
On the 26 August 2024 a new casual conversion process, called “employee choice”, came into effect for employees engaged at clubs on or after this date. For existing employees however, they were kept on the “old” process for a period of time with existing employees at a non-small business already switching over to the new process on 26 February 2025.
For those who were engaged before 26 August 2024 at a small business they will soon also be switching over to the new process, effective 26 August 2025.
Clubs need to be aware of the new process although the difference in the employee choice process as compared to the old process for employees at a small business is not major, with an employee still being the one who needs to notify their employer of any desire to convert.
To be eligible for conversion at a small business under the employee choice process, an employee will need to meet the following requirements:
· have been employed for at least 12 months; and
· believe they no longer meet the new casual employee definition.
The new casual definition states a casual employment relationship is present where:
· there isn’t a firm advance commitment to continuing and indefinite work, taking into account a number of factors, including the real substance, practical reality and true nature of the employment relationship; and
· they're entitled to receive a casual loading or specific casual pay rate.
An employee must make a request in writing and when a request is received a club will have to consult with the employee ASAP and respond in writing within 21 days either accepting or rejecting the change. If accepted then a response will have to properly outline the employee’s new employment status, hours of work and when the change is effective. A new contract of employment should also be entered into.
If looking to reject a request then this can only be done where the employee still meets the definition of a casual, there are “reasonable grounds for not accepting” or it would mean the employer isn’t complying with a recruitment or selection process required by law.
A notable change for small businesses under the employee choice pathway is it requires causal employees to be given the new Casual Employee Information Statement (CEIS) not only at commencement but also as soon as possible after 12 months of employment.
Members with questions should firstly look at the CEIS with a copy of this available on Clubs SA’s members only site and then they can contact Clubs SA if they have further questions.