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ARTICLE · 24 AUGUST 2021

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Major changes for casual employees in 2021

The new definition of "casual employee" applies to former, current and future employees – it is retrospective.

AustraliaEmployment and HR

In March 2021, changes to the Fair Work Act ('FW Act') came into effect which were the result of the federal government's attempts at defining casual employment. Importantly, the new definition applies to former, current and future employees – it is retrospective.

These legislative amendments together with High Court of Australia decisions have significantly altered the definition and entitlements of casual employees under Australian law. The changes brought by the Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Bill ('the Bill'), introduce the following into the FW Act:

  • a definition for casual employee; and
  • an entitlement for employers to off-set the payment of entitlements for mistakenly classified permanent employees against casual loadings paid; and

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