Updated: Jun 7
As a bookkeeper and provider of bookkeeping services in North Brisbane, I know that employing casual staff can be a flexible option for many businesses. However, there are important considerations to keep in mind, especially when it comes to the Casual Conversion Clause.
The Casual Conversion Clause was introduced into many modern awards in 2018, and it allows casual employees to request to become permanent employees after a certain period of employment. As a bookkeeper, it's important to understand the Casual Conversion Clause and what it means for employers and employees alike.
Important points to keep in mind about the Casual Conversion Clause include:
1. Which Awards include the Casual Conversion Clause: The Casual Conversion Clause is included in many modern awards, including the General Retail Industry Award, the Hospitality Industry (General) Award, and the Vehicle Manufacturing, Repair, Services and Retail Award, among others. It's important to check which award your casual employees fall under to determine if the clause applies.
2. Eligibility criteria for Casual Conversion: To be eligible for conversion, casual employees must have been employed for a certain period of time, which varies depending on the award. For example, under the General Retail Industry Award, casual employees must have been employed on a regular and systematic basis for at least 12 months to be eligible for conversion.
3. Employer obligations: Employers have an obligation to provide all casual employees with a copy of the Casual Conversion Clause within the first 12 months of their employment. Employers must also actively consider any requests for conversion made by eligible employees and respond in writing within 21 days of the request.
4. Employee obligations: Employees who wish to request conversion must do so in writing and provide this request to their employer. It's important to note that an employee's request for conversion can only be made once, and if their request is refused, they cannot make another request for conversion for another six months.
5. Conversion process: If an employee's request for conversion is accepted, they will become a permanent employee. This means they will be entitled to all the benefits and entitlements of permanent employees, including sick leave, annual leave, and redundancy pay. If an employee's request for conversion is refused, the employer must provide written reasons for the refusal.
As a bookkeeper, it's important to understand the implications of the Casual Conversion Clause for both employers and employees. Employers need to actively consider requests for conversion and provide written responses within 21 days. Employees need to make their request in writing and understand that they can only make one request for conversion.
To comply with the Casual Conversion Clause, it's important to keep accurate records of all casual employees' hours of work, as well as their start and end dates of employment. As a bookkeeper, I know that this can be challenging, especially for businesses with a large number of casual employees. That's why it's important to have a good bookkeeping system in place to ensure all records are accurate and up to date.
At Caboolture Bookkeeping, we provide bookkeeping services in North Brisbane to help businesses keep on top of their record-keeping obligations. We can help ensure all records are accurate and up to date, which is essential when it comes to complying with the Casual Conversion Clause.
In conclusion, as a bookkeeper and provider of bookkeeping services in North Brisbane, I know that the Casual Conversion Clause is an important consideration for businesses that employ casual staff. Employers need to actively consider requests for conversion and provide written responses within 21 days, while employees need to make their request in writing and understand that they can only make one request for conversion. By keeping accurate records and having a good bookkeeping system in place, businesses can comply with the Casual Conversion Clause and ensure they are meeting their obligations under the relevant modern award.
If you would like assistance with your bookkeeping needs, please get in touch!
Disclaimer of Professional Advice. The information provided through Caboolture Bookkeeping is not a substitute for professional advice where the facts and circumstances warrant it. If any person or business requires professional assistance, each such person or business should always consult his or her own legal or other professional advisors and discuss the facts and circumstances that apply to the person or business.
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