Casual employment has long been a central feature of the Australian labour market. It offers flexibility to businesses, provides opportunities for workers seeking adaptable hours, and can be a useful workforce model during fluctuating demand. Yet it is also one of the most misunderstood areas of workplace relations. Myths persist— especially the ones that make people panic- about entitlements, conversion rights, termination, rostering, and the legal tests for determining who is genuinely a casual employee. 

These misunderstandings can lead to serious compliance risks and unnecessary tension between employers and employees. The past few years have brought major legislative reforms—particularly through the Fair Work Act 2009 and decisions such as WorkPac v Rossato and WorkPac v Skene—which have reshaped the casual employment landscape.  

Despite this, misinformation continues to circulate. 

This article dispels the most common myths about casual employment and clarifies what employers must get right to stay compliant. It finishes by outlining how Business Chamber Queensland can support businesses in managing casual workforces with confidence and clarity. 

Myth 1: “If the employee is paid a casual loading, they must be a casual.” 

Reality: Classification depends on the employment relationship, not the loading. 

Historically, there was confusion over whether paying a 25% casual loading automatically made an employee “casual.” This was challenged following high-profile cases where the courts found that some employees labelled “casuals” were not truly casual because they had stable, predictable, and ongoing work patterns resembling permanent employment. 

Under section 15A of the Fair Work Act 2009, an employee is considered a casual if the employment relationship lacks a firm advance commitment to ongoing, indefinite work and the employee is entitled to a casual loading or specific casual pay rate under an award, agreement, or contract. This determination is based on the real substance and practical reality of the relationship, considering factors such as  

• whether the employer and employee can choose to offer or accept work,  
• the likelihood of ongoing work,  
• the presence of full-time or part-time employees doing similar work, and  
• any regular work patterns (which alone do not indicate permanency).  

Casual loading is additional compensation, not the determinant of casual status. If the employee wasn’t found to be entitled to a casual loading or specific casual pay rate under an award, agreement, or contract. 

Myth 2: “If someone works regular hours, they automatically become permanent.” 

Reality: Regular hours alone do not convert a casual to permanent employment. 

It is common for casual employees to settle into patterns of regular, systematic hours over time. Some employers fear that this consistency itself transforms the employee into a permanent staff member. 

Regular hours can trigger eligibility for the right to request conversion, but they do not automatically change the employee’s status. 

Under the National Employment Standards (NES), most casuals have the right to conversion to full-time or part-time employment after 12 months if they meet certain eligibility conditions. However: 

• The employee must formally notify their employer of their intent for conversion 
• The employer can refuse the notice on reasonable business grounds, documented in writing. 
• The refusal must be provided within the statutory timeframe. 

Regular, predictable hours may create the opportunity for conversion discussions, but they do not create permanent employment by default. 

Myth 3: “Casuals aren’t entitled to anything—no leave, no notice, no protections.” 

Reality: Casuals have many entitlements. These differ from permanent employees but are significant. 

It is a widespread misconception that casual workers “don’t get anything.” In reality, casuals have numerous entitlements under the NES, including: 

• Casual loading (typically 25%) in place of paid leave. 
• Superannuation if they earn above the minimum threshold. 
• Unpaid carer’s leave (2 days per occasion). 
• Unpaid compassionate leave. 
• Paid family and domestic violence leave (10 days per year) 
• Fair Work Act protections, including freedom of association, workplace rights, and protection from adverse action. 
• Minimum wage and penalty rates, including weekend, public holiday, and overtime rights where applicable. 
• Break entitlements and rostering minimums under awards. 

Casuals may not receive paid annual leave or paid personal leave, but the casual loading compensates for these non-accrued entitlements and is a genuine financial consideration. 

Myth 4: “Casuals can’t claim unfair dismissal.” 

Reality: Casual employees can claim unfair dismissal in many circumstances. 

Many employers assume casual employees have no access to unfair dismissal remedies. This is incorrect. 

A casual employee can be eligible for unfair dismissal if: 

• They meet the minimum employment period (6 months for large employers or 12 months for small businesses), and 
• They have worked on a regular and systematic basis, and 
• They had a reasonable expectation of continuing employment. 

This means that if a casual has been working frequent weekly shifts for many months, they may well have standing to bring an unfair dismissal claim. The key is not the label “casual,” but the pattern and expectations that develop over time. 

Myth 5: “Casuals never have to be consulted about roster changes or redundancies.” 

Reality: Consultation obligations still apply—but differently depending on the circumstances. 

Under many modern awards, employers must consult with employees (including casuals) when: 

• There are major changes in the workplace (e.g., restructure, change in operational hours). 
• There is a proposal to alter their regular roster or ordinary hours. 

However, casual employment by its nature involves no firm advance commitment to ongoing work, so casuals generally: 

• Are not entitled to redundancy pay. 
• Do not require notice of termination. 
• Do not have the same job security as permanent employees. 

But where an award includes a requirement to consult—particularly about changes to rosters or hours—casual employees are expressly included. Failing to consult can risk disputes, backpay claims, or award contraventions. 

Changes that result in a causal employee receiving no hours on an indefinite basis may also be considered a dismissal, if the employee is entitled to make an unfair dismissal claim.  

Myth 6: “You can dismiss a casual at any time without following any process.” 

Reality: Casual does not mean unprotected. A fair and defensible process still matters. 

Employers often confuse the absence of notice of termination with an absence of risk. While it is true that casual employment can be ended without notice (unless an award or agreement specifies otherwise), dismissal must still comply with: 

• The general protections provisions of the Fair Work Act. 
• Anti-discrimination laws. 
• Adverse action rules. 
• Reprisals-related prohibitions (e.g., for making complaints or inquiries). 
• Unfair dismissal rules (for eligible employees). 

Terminating a casual because they raised a safety issue, requested conversion, or exercised a workplace right could result in significant legal consequences. 

A short, structured, defensible process is always recommended, even for casuals—for example: 

• Confirming performance concerns in writing. 
• Offering an opportunity to respond. 
• Documenting decisions. 

Casual employment does not shield employers from legal responsibilities. 

Myth 7: “You cannot offer predictable or regular shifts to casuals.” 

Reality: Predictability does not automatically change a casual’s status—but it should be managed carefully. 

Predictable hours do not invalidate a casual relationship, provided there remains: 

• No firm advance commitment to continuing or guaranteed work. 
• Flexibility for either party to vary shifts. 
• Clarity that each shift is an offer accepted by the employee. 

It is common for casual lessons, swim instructors, retail assistants, hospitality workers, or health and support staff to work fairly consistent patterns. Regularity is not the issue—guaranteed continuity is. 

What employers must avoid is: 

• Promising ongoing work indefinitely. 
• Guaranteeing fixed hours well into the future. 
• Treating casuals like permanent staff without offering conversion. 

The key is clear documentation and regular re-confirmation of the casual arrangement. 

Myth 8: “If a casual works for a long time, they automatically ‘accumulate’ long service leave.” 

Reality: Long service leave rules vary—and many casuals do accrue it. 

Unlike annual leave and personal leave, long service leave accrues based on service, not employment type. Many state and territory long service leave laws, including QLD cover casual employees provided they have continuous service, even if intermittent. 

This means: 

• A long-term casual may be entitled to long service leave after the relevant qualifying period (e.g., 7 or 10 years depending on state law). 
• Breaks in service might not affect accrual if there is a continuing employment relationship. 

Employers often overlook this in workforce planning and cost projections. Long service leave for casuals must be considered, documented, and budgeted. 

Myth 9: “Casual employment is the same as labour-hire or temporary contracting.” 

Reality: These are separate legal concepts with different risk profiles. 

“Casual” employment refers to an employment relationship with no guaranteed hours and compensation through a loading. 

By contrast: 

• Labour-hire involves an agency that supplies workers to a host business. 
• Contracting involves a contractor providing services to a principal (not an employment relationship). 
• Temporary or fixed-term employment involves guaranteed hours for a limited period. 
• Misclassifying workers—especially treating employees as contractors—can lead to: 
• Taxation issues. 
• Superannuation liabilities. 
• Back-payment of entitlements. 
• Penalties under the Fair Work Act. 

Casual employment sits within the employment spectrum, not the contracting spectrum. 

Myth 10: “Casuals are cheaper for the business.” 

Reality: Sometimes—but not always. It depends on the operational model. 

Casual loading makes the hourly rate higher. This compensates for: 

• Paid leave not being accrued. 
• Uncertain work hours. 
• Lack of ongoing commitment. 

For occasional or genuinely variable work, casual employment can be cost-effective. But for regular weekly hours over long periods, permanent employment is often more economical long-term. 

Employers should regularly analyse: 

• Shift patterns. 
• Conversion thresholds. 
• Workforce planning needs. 
• Cost structures. 

A strategic mix of permanent and casual staff is usually the best model—not relying heavily on casuals by default. 

Where employers commonly go wrong 

Even well-intentioned businesses make errors in casual employment. The most common pitfalls include: 

• Providing regular hours without reviewing conversion obligations. 
• Failing to issue compliant casual employment contracts. 
• Neglecting to provide the Casual Employment Information Statement (CEIS). 
• Assuming casuals are not eligible for unfair dismissal. 
• Misunderstanding award requirements for minimum engagements, breaks, and rostering. 
• Not documenting refusals of conversion requests. 
• Incorrectly loading calculations or double-counting entitlements. 

Clear, compliant practices are essential to avoid disputes, underpayments, and regulatory action. 

Best practice strategies for managing casual employees 

Employers can strengthen compliance and confidence by embedding these practices: 

1. Provide clear, current, compliant contracts 

Contracts should outline: 

• That the employee is engaged as a casual. 
• That there is no guarantee of ongoing or regular work. 
• The applicable casual loading. 
• The mechanism for accepting shifts. 
• Rates of pay under the relevant award. 

2. Give the CEIS at commencement 

This is a NES obligation and must be documented. 

3. Monitor patterns of work 

Implement quarterly or semi-annual reviews to ensure shifts have not unintentionally created expectations of permanence. 

4. Document all conversations about hours or rostering 

Clarity avoids disputes. 

5. Have a structured process for managing performance 

Even casuals should receive: 

• Clear information about expectations. 
• Feedback. 
• Opportunities to respond. 
• Documentation of any issues. 

6. Prepare for conversion requests proactively 

This includes: 

• Having a clear policy. 
• Responding within the statutory timeframe. 
• Documenting refusal reasons (if applicable). 

7. Use award-compliant rostering and pay practices 

Casuals are entitled to penalty rates and minimum engagements in many industries. 

8. Keep accurate records 

Employment records, time sheets, pay slips, and employment documents should be complete and up to date.