Casual Employment – New Obligations for Employers
FCC CHANGES INDUSTRY PRACTICE, IMPOSING OBLIGATIONS ON EMPLOYERS USING CASUAL WORKERS.
A shock to employers across the country comes as the Federal Circuit Court makes a ruling, entitling casual employees who have been employed on a regular and systematic basis to Annual Leave entitlements.
On Thursday 16 August 2018, the full bench of the Federal Circuit Court ruled in WorkPac Pty Ltd v Skene [2018] FCAFC 131 that a casual hired on a regular and systematic basis was denied access to the National Employment Standards established under the Fair Work Act, if they were not eligible to accrue Annual Leave.
While the entitlement under the Fair Work Act Section 86 establishes that casual employees are exempt from Annual Leave entitlements, the full bench ruled that the term “Casual Employee” essentially has an alternative meaning to that that of Industry practice. The Court ruled that the definition of Casual Employee does not have the same meaning for the purposes of the National Employment Standards as it does for the way they are classified under an established award or agreement.
This decision brings an end to the idea of the “permanent Casual” and will have significant impacts on the employment of young people in particular who rely on casual employment while pursuing other life goals, such as higher education.
Further to the impact on the employment market, this will have significant impacts on the financial security of businesses both large and small. This ruling establishes an unexpected liability on all businesses to accrue annual leave for any regular casuals. Effectively, this has enabled casual workers to “double dip” by claiming annual leave payments in addition to the casual loading they have already accepted as payment.
While the decision may still be appealed to the High Court and the Government may implement legislation to essentially reverse the ruling, this will likely take some time. Inevitably it is likely businesses will be required to defend an influx of claims by casual employees for annual leave in the coming months.
In response to this decision, Indrele Workplace Consulting will be hosting a number of information sessions for our clients and referrers’ to discuss the implications this may have for their business, and managing the risks associated with this ruling.
Please contact us via email to register your interest in our future information sessions on current workplace relations issues.
Stephanie King:
stephanie@indreleconsulting.com.au
Clint Indrele:
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