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ARTICLE · 12 FEBRUARY 2019

Employers caught off guard regarding long term casual workers

The Federal Court has ruled that workers engaged as casuals may be entitled to annual leave.

AustraliaEmployment and HR

In a landmark decision, the Federal Court has ruled that workers engaged as ‘casuals’ may be entitled to annual leave. The decision in WorkPac Pty Ltd v Skene [2018] FCAFC 131 has paved the way for claims by ‘casual’ workers who are employed on a regular and systematic basis.

In this case, a FIFO worker engaged as a ‘casual’ by labour-hire company WorkPac was held to be a permanent employee. Although the employee was designated as a ‘casual’ and was paid a flat hourly rate, the Court held that the real substance of the working relationship had to be considered.

In order for a worker to be classified a casual employee under the NES annual leave provisions, there must be the “absence of a firm advance commitment as to the duration of the employee’s employment or the days or hours the employee will work”.

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