Casual Conversion Rules — Restaurant Award (MA000119)

What Changed on 26 February 2025

The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 substantially overhauled the casual employment framework in the Fair Work Act 2009 (Cth). The changes commenced on 26 February 2025 and apply to all modern awards, including MA000119. Clause 11.6 of the Restaurant Award now refers directly to the conversion pathway in sections 66A to 66MA of the Act.

The key changes from the prior framework:

• Employee-initiated, not employer-initiated — the obligation has shifted from the employer making offers to the employee requesting conversion via written notification
• 6-month threshold (or 12 months for small business) — replacing the previous 12-month review point
• New definition of casual employment — section 15A of the Fair Work Act now defines a casual employee by reference to the absence of a firm advance commitment to continuing and indefinite work, with regard to the real substance, practical reality, and true nature of the employment relationship
• Casual Employment Information Statement obligations expanded — must be provided at commencement and at the relevant 6 or 12 month milestone

The Employee-Initiated Conversion Pathway

The conversion process under sections 66A to 66MA works as follows:

Step 1 — Eligibility

A casual employee is eligible to give written notification requesting conversion if:

• They have been employed by the employer for at least 6 months (or 12 months for a small business employer, defined under section 23 of the Fair Work Act as fewer than 15 employees including casuals on a regular and systematic basis)
• They believe they no longer meet the definition of a casual employee under section 15A

Step 2 — Employee Notification

The employee gives the employer a written notification. The notification must specify whether the employee believes they should be converted to full-time or part-time employment, and the reasons. There is no prescribed form, but the notification must be in writing.

Step 3 — Employer Response (21 Days)

Under section 66AAA, the employer must respond in writing within 21 days of receiving the notification. The response must either:

• Accept the conversion, specifying whether to full-time or part-time employment, the hours, and the date the conversion takes effect, OR
• Refuse the conversion, providing reasons. The grounds for refusal are limited and include: the employee still meets the definition of a casual employee under section 15A; there are fair and reasonable operational grounds for refusal; or accepting the notification would result in the employer not complying with a recruitment or selection process required by or under a law of the Commonwealth, a State, or a Territory

Step 4 — Conversion Takes Effect

If the employer accepts, the employee converts to permanent employment from the date specified in the response. The employer must continue to comply with all other Award obligations — including any new applicable provisions for full-time or part-time employees, such as the part-time guaranteed hours agreement under clause 10.4 of MA000119.

Disputes About Casual Conversion

Disputes about casual conversion can be dealt with under sections 66M and 66MA of the Fair Work Act, or through the Award’s dispute resolution clause (clause 34 of MA000119). The Fair Work Commission can deal with disputes and make orders, including orders for the employer to convert the employee to permanent employment.

The Casual Employment Information Statement (CEIS)

Section 125B of the Fair Work Act requires employers to give the CEIS to every casual employee. The CEIS is published and updated by the Fair Work Ombudsman. Failing to provide the CEIS is a separate contravention from any underpayment, and it is one of the most commonly missed obligations in Australian hospitality.

Employers must provide the CEIS at the following times:

The Fair Work Information Statement must also be given to all new employees (casual or otherwise) under section 125 of the Fair Work Act.

Casual Loading Stays the Same

Casual conversion changes the employee’s status — it does not retrospectively affect prior entitlements. Under clause 11.1 of MA000119, casual employees are paid a 25% loading on top of the minimum hourly rate during their period of casual employment. Once converted, the employee receives full-time or part-time pay rates and accesses leave entitlements going forward, but the casual loading already paid is not clawed back.

Common Casual Conversion Mistakes in Restaurants

• Operating under the pre-February 2025 framework — many venues still believe casual conversion is employer-initiated at 12 months. Under the current framework, the obligation is to respond to employee notifications, not to make offers. But the CEIS obligation is still on the employer
• Failing to provide the CEIS at commencement — this is a strict statutory obligation under section 125B. Forgetting to issue the CEIS to new casual hires is a contravention separate from any underpayment
• Missing the 6-month CEIS reissue — for non-small business employers, the CEIS must be reissued at 6 months. Many payroll systems do not automate this
• Refusing conversion on inadequate grounds — the grounds for refusal under section 66AAA are limited. “We don’t do permanent staff” is not a valid ground. Refusal must be based on the employee still meeting the section 15A casual definition, fair and reasonable operational grounds, or compliance with a legislated recruitment process
• Failing to respond within 21 days — section 66AAA imposes the 21-day deadline. Failure to respond exposes the employer to dispute resolution and adverse Commission orders
• Treating regular casuals as casuals indefinitely — section 15A looks at the real substance of the employment relationship. Where there is a firm advance commitment to ongoing work (regular hours, advance rosters, an expectation the employment will continue), the employee may already not meet the definition of a casual, regardless of how the contract describes them
• Confusing the threshold for small business — small business employer under section 23 is determined by the number of employees including casuals on a regular and systematic basis, not just permanent headcount. Most cafes and restaurants near the 15-employee threshold need to count carefully

Related Restaurant Award Guides

Frequently Asked Questions