What Makes You a Casual Employee
A person is a casual employee if, when they start, there is no firm advance commitment to ongoing work, and they are entitled to a casual loading or a specific casual pay rate under an award, agreement or contract. Whether there is a firm advance commitment depends on the real substance of the arrangement: whether the employer can offer or not offer work and you can accept or reject it, whether there is likely to be future work of the kind you do, whether permanent staff do the same work, and whether you have a regular pattern of work. A regular pattern on its own does not make you permanent, and not every factor has to be met.
Under the National Employment Standards, casuals get a pathway to permanent employment, 2 days of unpaid carer’s leave and 2 days of unpaid compassionate leave each occasion, 10 days of paid family and domestic violence leave a year, and unpaid community service leave. Full-time and part-time employees also get paid leave and notice (Fair Work Ombudsman).
How to Change to Permanent: the Employee Choice Pathway
- Check you are eligible. You have been employed at least 6 months (12 months if your employer is a small business) and you believe you no longer meet the casual definition. You cannot give notice during an ongoing dispute about it, or if in the last 6 months your employer refused a previous notice or you resolved a dispute about it.
- Give written notice. The Fair Work Ombudsman provides a checklist and notification template.
- Your employer consults you, then responds in writing within 21 days, either accepting or not accepting.
- If accepted, the response states whether you will be full-time or part-time, your new hours, and when the change starts. It takes effect from the first day of your first full pay period starting after the response, unless you agree another day.
- If refused, the employer must give reasons in writing, and the reasons can only be those below.
| Permitted reasons to refuse |
|---|
| You still meet the definition of a casual employee |
| Fair and reasonable operational grounds: substantial changes to how work is organised, significant impact on the business, or substantial changes to your conditions needed to comply with an award or agreement |
| Accepting would mean not complying with a recruitment or selection process required by law |
Fair Work Ombudsman, Becoming a permanent employee (content last updated 7 August 2026), read 5 October 2026.
The employee choice pathway replaced the old “casual conversion” rules on 26 August 2024. Employment before that date is not counted towards the 6 or 12 months. You can also become permanent at any time if you and your employer simply agree. Your employer cannot reduce your hours, change your pattern of work or end your employment to avoid your right, and you are protected from adverse action for exercising it.
What Happens to Your Pay
A casual’s hourly rate is the base rate plus the 25% casual loading. Becoming permanent removes the loading and adds paid annual leave, paid sick and carer’s leave, paid public holidays you would have worked, and notice and redundancy entitlements. So the same base rate pays a permanent employee for all 52 weeks, with leave inside it, while a casual is paid only for the weeks worked.
Take a $30 an hour base rate, 38 hours a week. A casual is paid $37.50 an hour. A permanent employee is paid $59,280 a year for 52 weeks. The casual would need to be paid for 41.6 weeks (52 ÷ 1.25) to earn the same.
| Paid weeks in the year | Casual gross | Permanent gross | Casual ahead or behind |
|---|---|---|---|
| 52 weeks | $74,100 | $59,280 | +$14,820 |
| 48 weeks | $68,400 | $59,280 | +$9,120 |
| 44 weeks | $62,700 | $59,280 | +$3,420 |
| 40 weeks | $57,000 | $59,280 | −$2,280 |
| 36 weeks | $51,300 | $59,280 | −$7,980 |
$30 an hour base, 38 hours a week, 25% casual loading. Gross pay only: both receive super and are taxed on the same scale. The permanent figure includes paid leave and public holidays.
The comparison counts only pay. It ignores paid sick leave, which a casual does not get, notice, redundancy pay, and the security of regular hours, which have value but are hard to price. To see the loading and what it would be worth against permanent pay for your own rate, use the casual loading calculator, and see full-time vs part-time vs casual for the entitlements side by side.
What Changes on Your Payslip
- The casual loading line disappears and your hourly rate drops to the base rate, unless your award or agreement sets otherwise.
- Leave balances start. Annual leave builds at 1 hour for every 13 hours worked (annual leave calculator) and sick leave at 1 hour for every 26 (sick leave calculator).
- Your hours are fixed in writing in the employer’s response, so you can check them against your award’s minimum engagement and your payslip.
- Net pay per period becomes steadier. See the net pay calculator to compare your take-home on each footing.
Related Calculators and Guides
- Casual Loading Calculator: the 25% loading against permanent pay
- Full-Time vs Part-Time vs Casual: entitlements compared
- Employment Type Calculator: employee or contractor
- Annual Leave Calculator: how permanent leave builds
- Junior Pay Rates: base rates by age
Frequently Asked Questions
Casual conversion questions and answers
How do I convert from casual to permanent in Australia?
You give your employer written notice under the employee choice pathway. You can do this if you have been employed for at least 6 months (12 months if your employer is a small business) and you believe you no longer meet the definition of a casual employee. You can also change to permanent at any time if you and your employer agree.
How long does my employer have to respond?
The employer must consult with you first, then respond in writing within 21 days of receiving your notice, either accepting the change or not accepting it. If accepted, the response must say whether you will be full-time or part-time, your new hours, and when the change takes effect.
Can my employer refuse to make me permanent?
Only for limited reasons, and they must give the reasons in writing: you still meet the definition of a casual employee; there are fair and reasonable operational grounds, such as substantial changes needed to how work is organised or significant impacts on the business; or accepting would mean not complying with a legally required recruitment or selection process.
When does the change to permanent take effect?
From the first day of your first full pay period starting after your employer gives their response, unless you and your employer agree another day.
What am I no longer paid when I become permanent?
Your casual loading, usually 25% on top of the base rate, stops. In return you get paid annual leave, paid sick and carer's leave, paid public holidays when you would have worked, and notice and redundancy entitlements, subject to your award or agreement.
Is a regular roster enough to make me permanent?
No. A regular pattern of work on its own does not make an employee permanent. A casual employee is one with no firm advance commitment to ongoing work, who is also paid a casual loading or casual rate. Whether there is a firm advance commitment depends on the real substance of the arrangement, including whether you can accept or reject shifts and whether permanent staff do the same work.
Can I be sacked or have my hours cut for asking?
No. An employer cannot reduce or vary your hours, change your pattern of work or terminate your employment to avoid your right to change to permanent employment. Casuals are also protected against adverse action for giving notice, receiving a written response or taking part in a dispute.
Is it better to stay casual or become permanent?
It depends on how many weeks you are paid in a year. With a 25% loading, a full-time casual needs to be paid for about 41.6 weeks of the year to earn as much as a permanent employee on the same base rate who is paid for all 52 weeks, including leave. If you work steady hours all year, permanent usually gives you more security for similar pay; if you take unpaid time off or your hours vary, casual loading can pay more.
I started casual before August 2024. Does that count?
Employment before 26 August 2024 is not counted when working out whether you meet the 6 or 12 month requirement under the employee choice pathway. Different pathways applied to some casuals up to 26 August 2025; the Fair Work Ombudsman explains the transitional rules.
How we worked this out▼
The eligibility, notice and response rules are those the Fair Work Ombudsman publishes for the employee choice pathway (Fair Work Act ss 66A–66M). The pay comparison uses the same base rate and weekly hours for both: casual pay = base × (1 + 25%) × hours × weeks paid; permanent pay = base × hours × 52, which includes paid leave. Break-even weeks = 52 ÷ (1 + loading), 41.6 at 25%.
The 25% loading is the most common rate under modern awards; yours may differ. The comparison excludes super (paid to both), tax, and entitlements such as sick leave, notice and redundancy pay. General information, not advice.
Sources & References
- 1Becoming a permanent employee— Fair Work Ombudsman
- 2Casual employees— Fair Work Ombudsman
- 3Fair Work Act 2009, sections 66A–66M— Federal Register of Legislation
Last verified: 5 October 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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