The Times Australia
Fisher and Paykel Appliances
Business and Money

Employers will resist, but the changes for casual workers are about accepting reality

  • Written by John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney
Employers will resist, but the changes for casual workers are about accepting reality

The Albanese government’s plan to improve the pathway to permanency for casual workers has employers worried, fearful their ability to employ casual workers will be restricted.

Even before the details had been released, there was certainty, in the words[1] of Australian Industry Group chief executive Innes Willox, that there “is simply no justification for further changes to the regulation of casual work”.

In support of this argument are statistics suggesting the casualisation trend has peaked. But that’s by no means certain: the most recent data from the Australian Bureau of Statistics shows casualisation climbing again, with an overall rate of 23.5%.

The counterargument is that entrenched casualisation doesn’t make the status quo right, and that the government’s proposed reforms will give greater recognition to reality. That is, if a worker is effectively working as a permanent employee, they have the right to be treated as such. Read more: Albanese government to make it easier for casuals to become permanent employees[2] Rise of the ‘permanent casual’ While casual employment can often suit both employer and employee, the evidence does suggest some employers have exploited the legal ambiguities around definitions and obligations. Australia’s National Employment Standards – the minimum safety net for all workers – say a casual employee who has worked for their employer for 12 months must be offered the option[3] to convert to full-time or part-time (permanent) employment. But there are significant exemptions, particularly for small business. Close to 60% of Australia’s casual workers have been with their employer for more than a year[4], and 45% to 60% report regular hours and pay[5]. This has resulted in the great Australian oxymoron of “the permanent casual”. There is effectively a class of workers who don’t get holiday and sick pay, no matter how long or regularly they work, simply because their employer deemed them “casual” when they began. Read more: The truth about much 'casual' work: it's really about permanent insecurity[6] The legal landscape Since the 1990s, workers and their union representatives have challenged these contrivances in industrial tribunals. Several of these decisions have been tested on appeal in the Federal Court. In two cases in 2018 and 2020[7], the Federal Court agreed a worker’s employment status should based on the reality of their long-term employment relationship. That is, if there was continuity, based on extended, regular patterns of employment, a worker was a permanent employee. Similar principles applied to those deemed contractors. However, appeals to the High Court in 2021[8] and in 2022[9] overturned these rulings. For the High Court, a formal stipulation of relations written in a contract were all that counted. The reality of life on the job was irrelevant. Read more: What defines casual work? Federal Court ruling highlights a fundamental flaw in Australian labour law[10] Common law versus parliament The High Court’s decisions – that formal freedom of contract has to be respected irrespective of the realities of bargaining power – reflect a long struggle between the common law and parliament in matters concerning working life. In the 1700s and 1800s, workers were jailed for meeting to discuss wage campaigns. To this day, commercial common law considers the principle of “freedom of contract” as the foundation for all commercial relations – including those involving employment. Union activity is an illegal restraint of trade. These principles have never been changed in the courts. It is only by statute (legislation passed by parliament) that trade unions and collective action by workers has been allowed. The federal Employment and Workplace Relations Minister, Tony Burke, says[11] the government “will legislate a fair, objective definition to determine when an employee can be classified as casual”, and no one will lose their casual status if that is their preference. There will, no doubt, be opposition, with warnings about threats to productivity and suggestions economic conditions are too fragile. But there’s a lot to be said in favour of giving greater recognition to reality.

References

  1. ^ the words (www.theaustralian.com.au)
  2. ^ Albanese government to make it easier for casuals to become permanent employees (theconversation.com)
  3. ^ must be offered the option (www.fairwork.gov.au)
  4. ^ for more than a year (www.aph.gov.au)
  5. ^ regular hours and pay (www.aph.gov.au)
  6. ^ The truth about much 'casual' work: it's really about permanent insecurity (theconversation.com)
  7. ^ 2018 and 2020 (www.lexisnexis.com.au)
  8. ^ in 2021 (www.corrs.com.au)
  9. ^ in 2022 (www.minterellison.com)
  10. ^ What defines casual work? Federal Court ruling highlights a fundamental flaw in Australian labour law (theconversation.com)
  11. ^ says (ministers.dewr.gov.au)

Authors: John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney

Read more https://theconversation.com/employers-will-resist-but-the-changes-for-casual-workers-are-about-accepting-reality-210272

Business Times

Partnership repaints approach to tradie mental health crisis

Haymes Paint Shop has supercharged its commitment to blue-collar counselling service TIACS to encourage Aussie tradies to ‘...

YepAI Emerges as AI Dark Horse, Launches V3 SuperAgent to Revolut…

November 24, 2025 – YepAI today announced the launch of its V3 SuperAgent, an enhanced AI platform designed to streamlin...

What SMEs Should Look For When Choosing a Shared Office in 2026

Small and medium-sized enterprises remain the backbone of Australia’s economy. As of mid-2024, small businesses accounted f...

The Times Features

Buying a property soon? What predictions are out there for mortgage interest rates?

As Australians eye the property market, one of the biggest questions is where mortgage interest ...

Last-Minute Christmas Holiday Ideas for Sydney Families

Perfect escapes you can still book — without blowing the budget or travelling too far Christmas...

98 Lygon St Melbourne’s New Mediterranean Hideaway

Brunswick East has just picked up a serious summer upgrade. Neighbourhood favourite 98 Lygon St B...

How Australians can stay healthier for longer

Australians face a decade of poor health unless they close the gap between living longer and sta...

The Origin of Human Life — Is Intelligent Design Worth Taking Seriously?

For more than a century, the debate about how human life began has been framed as a binary: evol...

The way Australia produces food is unique. Our updated dietary guidelines have to recognise this

You might know Australia’s dietary guidelines[1] from the famous infographics[2] showing the typ...

Why a Holiday or Short Break in the Noosa Region Is an Ideal Getaway

Few Australian destinations capture the imagination quite like Noosa. With its calm turquoise ba...

How Dynamic Pricing in Accommodation — From Caravan Parks to Hotels — Affects Holiday Affordability

Dynamic pricing has quietly become one of the most influential forces shaping the cost of an Aus...

The rise of chatbot therapists: Why AI cannot replace human care

Some are dubbing AI as the fourth industrial revolution, with the sweeping changes it is propellin...