2025 employment changes, Australian workplace laws, casual conversion, casual employee rights, casual employment, casual to permanent, CEIS, employee choice pathway, employer obligations, employment contracts, employment law changes, Fair Work Act, Fair Work compliance, HR compliance, industrial relations, payroll updates, right to disconnect, small business advice, staff management, workforce planning
Casual Employment Is Changing — Here’s What Employers Need to Know in 2025
By Nikki Lane
19 June 2025
If your business engages casual employees, 2025 brings significant changes that you’ll want to get across sooner rather than later. The Australian Government is shifting the onus of moving from casual to permanent employment from employers to employees, in what’s being called the “employee choice pathway.”
While the changes are still a few months away, it’s essential to understand how they’ll affect your business — and your obligations.
What’s Changing?
From 26 August 2024, the definition of casual employment will be clarified under national industrial relations laws. In short, employment will now be assessed based on the practical reality of the work relationship, not just what’s in the contract.
Here are the key updates:
1. Definition of Casual Employment
A worker is considered a casual employee if there is no firm advance commitment to continuing and indefinite work. This new definition looks at the “real substance, practical reality, and true nature of the employment relationship.” In other words, courts and regulators will examine how the role plays out in practice — not just what’s written on paper.
2. The Employee Choice Pathway
Eligible casuals will soon have the right to request a move to permanent part-time or full-time work. This is called the “employee choice pathway,” and it empowers workers to make the first move via a written request to their employer.
When does it apply?
- For most businesses: From 26 February 2025
- For small business employers: From 26 August 2025
Employer obligations:
- Must respond within 21 days of receiving a request.
- Must consult with the employee.
- May only refuse the request on reasonable business grounds — e.g., significant impact on operations or changes to business needs.
3. Casual Employment Information Statement (CEIS)
Employers are now required to give all casual employees a CEIS, which explains their rights and entitlements under the Fair Work Act.
This must be provided:
- At the start of employment
- Again, at certain points during the employment (e.g., 6 and 12 months)
Download the CEIS | Explore CEIS tools and resources
4. Right to Disconnect
A broader change across employment law is the new right for employees to disconnect — meaning they can refuse to respond to work communications outside of their scheduled hours, unless it would be unreasonable to do so.
This is particularly relevant for businesses that rely on after-hours contact with casual staff — it’s time to review those practices.
Transitional Arrangements
- Current casuals: Existing rules will continue for a short transition period for employees who started before 26 August 2024.
- Small businesses: These employers will have extra time before the changes apply fully — aligning with the later 26 August 2025 start for employee-initiated conversions.
Why This Matters
This isn’t just a legal formality. These changes have real implications for:
- Workforce planning and staffing models
- HR and payroll systems
- Your obligations around compliance and documentation
As with any regulatory update, getting ahead of the curve is your best move. Now is a good time to:
- Review your current casual contracts and work arrangements
- Ensure you’re ready to meet your CEIS and consultation obligations
- Talk to your advisor (that’s us!) if you’re unsure what the practical impact is for your business
If you’d like help reviewing your employment structures or understanding how these changes affect your business, feel free to get in touch. We’re always here to simplify the rules and help you stay compliant — without the confusion.
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