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ARTICLE · 02 JUNE 2020

Casual approach causes major headache: WorkPac v Rossato

Employers with a casual workforce could now face the risk of employees claiming back-pay, leave and maybe, penalties.

AustraliaEmployment and HR

Casual approach causes major headache: WorkPac v Rossato

In a unanimous, but 272 page, judgment, the Full Court of the Federal Court has shattered what many employers had considered to be the standard position about engaging casual employees.

An appeal is all but certain. However, as it stands, employers with a casual workforce face an unprecedented risk of employees claiming back-pay, and potentially penalties, for unpaid annual leave, public holidays and personal/carer's leave entitlements. Claims may also be brought for redundancy and notice of termination.

The judgment has also made it clear that attempts to set-off, or claw back, the usual 25% casual loading based on traditional clauses will almost always fail. In a final blow, the Court has effectively sunk the Government's attempts to use a recent regulation to allow employers to set-off any underpayment against the casual loading.

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