For many Australian workers, casual work starts out flexible and gradually becomes regular: the same shifts, week after week, for the same employer, with only the contract still looking casual. If that sounds familiar, casual conversion may be relevant to you.
Casual conversion changes a casual job into a permanent full-time or part-time job. Since 26 August 2024, this has run through the National Employment Standards (NES) employee choice pathway, which gives an eligible casual employee the right to ask to become permanent and requires the employer to consider the request properly and respond in writing.
The part that confuses most people is pay. Your hourly rate usually falls on conversion, because the 25% casual loading stops, but that does not automatically mean you are worse off. You gain paid leave, paid public holidays on your ordinary days, notice of termination and redundancy pay eligibility, plus a more predictable roster. This guide explains who can convert, how the process works, and what the pay maths looks like.
What casual conversion means
A casual employee is someone who has no firm advance commitment to ongoing work. That is the key test in the NES casual definition. If your employer regularly offers you work, you regularly accept it, and there is an ongoing pattern, you may no longer fit that definition in practice, even if your contract still calls you casual.
Conversion does not create a new job with a different employer. It changes the basis of your existing employment to full-time or part-time, based on your regular pattern of hours, and the new arrangement should reflect the hours you have actually been working. It is not a promotion or a pay rise. Whether it leaves you better off depends on how much you value paid leave, job security and predictable hours compared with the higher casual hourly rate.
The employee choice pathway: how it works
Under the employee choice pathway, the process starts with you. If you believe you no longer meet the casual definition, you give your employer a clear written notice saying so, creating a record of when it was given and what it said.
Once received, the employer must consult with you and respond in writing within 21 days. Consultation means a genuine discussion, not simply a yes or no at the end of the period. The employer can refuse only on fair and reasonable grounds, for example that you still meet the casual definition, or that there are reasonable business grounds.
If refused, you cannot give another notice within 6 months, so it is important to get the first notice right. Keep copies of your notice, the response, and any consultation notes. If a dispute cannot be resolved with your employer, it can go to the Fair Work Commission.
| Step | What happens | Timing |
|---|---|---|
| 1. Check eligibility | Confirm your service and whether your pattern still fits the casual definition | Before you write |
| 2. Give written notice | Tell your employer in writing that you no longer meet the casual definition | When you are ready |
| 3. Consultation | Your employer must consult with you about the request | After the notice |
| 4. Written response | Your employer must respond in writing, accepting or refusing on fair and reasonable grounds | Within 21 days |
| 5. New terms agreed | If accepted, your hours, rate and start date are set out in writing | Before conversion starts |
Before this pathway, there was an employer-offer pathway, under which employers offered conversion after 12 months where an employee had worked a regular pattern over the last 6 months. That pathway applied only as a transitional arrangement and is no longer the main route. Two protections sit behind the process: an employer cannot dismiss or threaten an employee to avoid conversion, and a contract clause saying someone stays casual forever does not override the NES.
Are you eligible for casual conversion?
Eligibility has two parts: how long you have worked for the employer, and whether you genuinely believe you no longer meet the casual definition. Service alone is not enough if your work is still genuinely irregular, and a regular pattern alone is not enough before you reach the service threshold.
The service threshold is at least 6 months for most employees, or 12 months for a small business employer (fewer than 15 employees). If unsure whether your employer counts as a small business employer, clarify that before giving notice, as it changes when you become eligible.
| Employer size | Minimum service required | Other requirement |
|---|---|---|
| Most employers | At least 6 months | Genuine belief you no longer meet the casual definition |
| Small business employer (fewer than 15 employees) | At least 12 months | Genuine belief you no longer meet the casual definition |
Your rosters are your best evidence. Before you give notice, gather your roster history and payslips and check whether your days and hours are broadly the same each week. The more consistent the pattern, the stronger the basis for a notice.
What changes to your pay?
On conversion, the 25% casual loading stops and your hourly rate becomes the permanent base rate. In cash terms, each ordinary hour is paid at a lower rate than before. What you gain in return is paid time off and other entitlements that casual loading is meant to compensate for.
Consider an illustrative example. A casual employee on a $32 base rate earns $40 per hour with 25% loading. Working 24 hours per week for 52 weeks, that employee earns $49,920 a year, with no paid leave. Converted to permanent part-time at $32 per hour, the same employee would earn $39,936 in ordinary wages over the same hours.
The permanent package then adds paid leave: four weeks of annual leave on a 24-hour week is 96 hours, worth $3,072 at $32 per hour, plus 17.5% annual leave loading where the award provides it ($537.60), plus 48 hours of paid personal leave, worth $1,536. Together, the leave-inclusive value is about $45,082, before counting notice and redundancy rights and more predictable rosters.
| Item | Casual (24 hrs/week) | Permanent part-time (24 hrs/week) |
|---|---|---|
| Hourly rate | $40 (base $32 plus 25% loading) | $32 |
| Ordinary annual wages | $49,920 | $39,936 |
| Paid annual leave | None | 96 hours, worth $3,072 |
| Annual leave loading (where the award provides it) | None | 17.5%, worth $537.60 |
| Paid personal leave | None | 48 hours, worth $1,536 |
| Leave-inclusive package value | $49,920 | About $45,082 |
Read this comparison carefully. In this example, the leave-inclusive value of the permanent package is lower than the casual cash total, even though the permanent employee gains paid leave, notice rights, redundancy eligibility and roster predictability. Conversion does not always pay more in cash. This is an illustrative comparison, not a claim that every conversion pays more in cash.
Why do many employees still choose to convert? Paid leave means you are still paid on holiday or when sick, notice means your job cannot simply end without warning, and redundancy eligibility (after 12 months’ service, subject to the small business exemption) provides a safety net. A permanent roster also makes it easier to plan childcare, study, rent and loan applications. For some, that security is worth more than the difference in the totals; for others, staying casual is better. To run your own numbers, use the casual loading calculator to compare your casual rate with the permanent base rate.
What entitlements do you gain?
On conversion, you move from a casual arrangement, where loading compensates for the absence of leave, to a permanent arrangement where leave and other entitlements are built in. Your award or agreement may add further entitlements, so check the instrument covering your job as well as the NES.
| Entitlement | Casual | After conversion |
|---|---|---|
| Casual loading | 25% on top of the base rate | Stops; paid at the permanent base rate |
| Paid annual leave | None | 4 weeks pro-rata |
| Paid personal or carer’s leave | None | 10 days pro-rata |
| Paid public holidays | Not paid unless worked | Paid on your ordinary days |
| Notice of termination | Generally not required | Required, as a permanent employee |
| Redundancy pay | Not eligible | Eligible after 12 months’ service, subject to small business exemption |
| Superannuation guarantee | Applies to ordinary time earnings, including loading | Applies to ordinary time earnings |
Superannuation continues after conversion. The guarantee, at 12% in 2025-26, applies to ordinary time earnings in both cases, including casual loading while you are casual. What changes is the base, because your ordinary time earnings after conversion no longer include loading.
Practical steps to convert
Start by checking your eligibility and reviewing your roster pattern honestly. If your hours have been regular and are likely to continue, you have a sound basis for a notice. Then put your notice in writing, keeping it simple and factual: state that you believe you no longer meet the casual definition and that you are requesting conversion under the employee choice pathway. Keep a copy and note the date you gave it, because your employer must then consult with you and respond in writing within 21 days.
During consultation, be ready to discuss your regular pattern and the hours you have actually been working. If the request is accepted, get the new terms in writing before conversion starts: your hours, your rate, your start date, and whether the role is full-time or part-time. Finally, check your first payslips closely. Your rate should reflect the permanent base rate, your leave balances should start accruing, and your hours should match the agreed pattern. If something looks wrong, raise it promptly and in writing. To estimate what your leave will be worth, use the annual leave calculator.
Frequently asked questions
Does my hourly rate always fall when I convert?
In most cases, yes, because the 25% loading stops and you move to the permanent base rate. Compare the whole package, including paid leave, notice and redundancy rights, rather than the hourly rate alone.
How long do I need to have worked for my employer before I can ask?
You need at least 6 months’ service, or 12 months if your employer is a small business employer with fewer than 15 employees. You must also genuinely believe you no longer meet the casual definition, for example because you work a regular pattern of hours that is likely to continue.
Can my employer simply say no?
No. An employer can refuse only on fair and reasonable grounds, such as that you still meet the casual definition or that there are reasonable business grounds. The employer must consult with you and respond in writing within 21 days. If refused, you cannot give another notice within 6 months.
Will I become full-time or part-time?
Conversion is to full-time or part-time based on your regular pattern of hours. The new arrangement should reflect the hours you have actually been working.
What happens to my superannuation when I convert?
Your superannuation guarantee entitlement continues. At 12% in 2025-26, it applies to ordinary time earnings in both cases, including casual loading while you are casual. After conversion, it applies to your ordinary time earnings as a permanent employee.
What should I do if my request is refused or I face pressure not to ask?
Keep copies of your notice, the employer’s response and related messages, and note discussion dates. An employer cannot dismiss or threaten an employee to avoid conversion, and a clause saying someone stays casual forever does not override the NES. Unresolved disputes can go to the Fair Work Commission.
Conclusion: is casual conversion right for you?
Casual conversion is not about chasing a higher hourly rate. It is about trading the 25% loading for paid leave, notice, redundancy eligibility and a more predictable working life. For some, that trade is clearly worthwhile; for others, the flexibility and higher cash rate of casual work remain the better fit.
If your work has become regular, start with your rosters and payslips, check your eligibility, run your own pay comparison, and put your request in writing if you decide to proceed. Keep records at every step, get your new terms in writing, and check your first payslips after conversion.