Casual Conversion · MA000004

Casual Conversion Under the Retail Award

1 Jul 2026 Updated 1 Jul 2026 By Fitz HR 5 min read Reviewed against FWO Pay Guide MA000004

Casual conversion changed fundamentally on 26 February 2025 — and retail, with its large casual workforce, is one of the most affected industries. Under the General Retail Industry Award MA000004, conversion is now driven by the employee, not the employer.

Since 26 February 2025, casual conversion under MA000004 is employee-initiated: a casual can give written notice requesting permanent employment after 6 months (12 months in a small business), if they no longer meet the casual definition. The employer must respond in writing within 21 days. On conversion the employee loses the 25% loading but gains paid leave and notice entitlements.

Rates current as at 2026-07-01 (Annual Wage Review), sourced from the Fair Work Ombudsman Pay Guide MA000004. Next review 2027-07-01.

Casual Conversion — Retail

Who initiates: the employee (since 26 Feb 2025)
Eligibility: 6 months (12 months for small business)
Employer response: in writing within 21 days
On conversion: lose 25% loading, gain paid leave & notice

Who Can Request Casual Conversion

Since 26 February 2025, casual conversion under all modern awards — including the General Retail Industry Award MA000004 — is employee-initiated. The old employer-offer model is gone. A casual employee can give written notice asking to convert to permanent employment when:

How an Employer Must Respond

Once an employee gives written notice, the employer must respond in writing within 21 days, either accepting the conversion or refusing it on one of the permitted grounds (for example, that the employee still genuinely meets the casual definition, or that accepting would require a significant change to the role). A refusal must set out the reasons.

Employers must also continue to provide the Casual Employment Information Statement to every casual at commencement and again at the relevant 6- or 12-month milestone. In retail, where rosters are often regular and systematic, many long-term casuals will meet the test — so it pays to have a clear internal process for handling requests.

What Changes on Conversion

On conversion, the employee moves to permanent full-time or part-time employment and loses the 25% casual loading — but gains paid annual leave, personal/carer's leave, notice of termination and (where applicable) redundancy entitlements. Their base classification rate under the General Retail Industry Award does not change; only the loading and leave treatment do.

Common Mistakes That Trigger Audits

Waiting for the employer to offer. The employer-offer model ended on 26 February 2025 — conversion is now employee-initiated, but the employer’s obligations to respond and to provide the Information Statement remain.
Missing the 21-day written response. Failing to respond in writing, or refusing without valid reasons, is a separate contravention.
Not providing the Casual Employment Information Statement. It must be given at commencement and again at the 6- or 12-month milestone.

Frequently Asked Questions

Who initiates casual conversion in retail now?
The employee. Since 26 February 2025, a casual gives written notice requesting conversion — the old employer-offer model no longer applies.
When can a retail casual request conversion?
After 6 months of employment (12 months for a small business with fewer than 15 employees), if they no longer meet the casual definition — i.e. the work has become regular and systematic with a firm advance commitment.
How long does an employer have to respond?
21 days, in writing — either accepting the conversion or refusing on valid grounds and setting out the reasons.
What does a retail casual lose on conversion?
The 25% casual loading — but they gain paid annual and personal/carer’s leave, notice of termination and, where applicable, redundancy entitlements. The base classification rate does not change.

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Casual Conversion Under the Retail Award — FAQ

Who initiates casual conversion in retail now? The employee. Since 26 February 2025, a casual gives written notice requesting conversion — the old employer-offer model no longer applies.

When can a retail casual request conversion? After 6 months of employment (12 months for a small business with fewer than 15 employees), if they no longer meet the casual definition — i.e. the work has become regular and systematic with a firm advance commitment.

How long does an employer have to respond? 21 days, in writing — either accepting the conversion or refusing on valid grounds and setting out the reasons.

What does a retail casual lose on conversion? The 25% casual loading — but they gain paid annual and personal/carer’s leave, notice of termination and, where applicable, redundancy entitlements. The base classification rate does not change.