Omnibus Bill: The end of ‘double dipping’

Key Points:

  • Newly introduced definition of a ‘casual employee’
  • ​Newly introduced casual conversion entitlements
  • The end of ‘double dipping’!
Background
Following the decision in WorkPac Pty Ltd v Rossato [2020] FCAFC 84 (Rossato Decision), many casual employees in Australia were likely to have been categorised as permanent employees, on the basis that they:
  1. worked for their employer for 12 months or more; 
  2. had predictable hours of work;
  3. had rosters and hours laid out in advance; and
  4. had an ongoing expectation of work.
Due to this, these ‘casual employees’ were able to ‘double-dip’ and be entitled to both the 25% casual loading, along with annual leave, personal/carer’s leave, and compassionate leave (Statutory Entitlements).

As a result, the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 (Omnibus Bill) was introduced into the Federal Parliament late last year.
Ruling
On 18 March 2021, a slimmed down version of the Omnibus Bill was passed by the Senate, and it is anticipated that it will soon be enacted as legislation.

The Omnibus Bill introduces several new clauses concerning casual employees into the Fair Work Act 2009 (Cth) (FW Act), including:
  • a definition of a casual employee (section 15A);
  • an offset clause that permits employers who have misclassified permanent employees as casuals, to offset casual loading amounts previously paid to the employee against any claims made by the employee for Statutory Entitlements – thus ending the possibility of double dipping (section 545A);
  • an extension to a casual employee’s rights, with employers now obligated to offer casual employees conversion to permanent employment in certain circumstances; and
  • a Casual Employment Information Statement, similar to the current Fair Work Information Statement, which employers will be required to provide to casual employees as soon as practicable after employment commences.
Final Comment
Earlier last year, the High Court of Australia granted labour hire company, WorkPac, special leave to appeal the Rossato Decision (HCoA Decision), and will be considering sometime this year:
  • what a genuine casual employee is; and
  • an order to prevent ‘double-dipping’, allowing employers to ‘set off’ any leave entitlements owed to casual employees against the paid casual loadings.
It is unknown what impact the HCoA Decision will have on the Omnibus Bill amendments, however, Hicksons will continue to monitor developments and will keep clients informed of changes as they come to hand.
Takeaway
Once the Bill is enacted, employers will have to comply with any newly enacted sections of the Act, otherwise face potentially prohibitive penalties.

If you are unsure of what changes the Omnibus Bill poses for your business, speak to one of our specialist Workplace Relations team members today, who can provide specific advice regarding:
  • what amendments may need to be made within your organisation to ensure compliance with the newly passed Omnibus Bill; and
  • how best to approach and respond to casual employees bringing claims for entitlements retrospectively.
Post by Hicksons Partner, Warwick Ryan, and Solicitor, Saasha Greeney.

Most Popular Articles

Blog

When can the unqualified be qualified? Non-lawyers engaging in legal practice - when is it OK and when is the law broken

Only lawyers can provide legal advice, but anyone can provide legal information. When thinking of the difference, you might ask your friend or colleague to provide information about a serious illness; however you would seek out a qualified medical professional in relation to its treatment.
Blog

Service of Notices by Registered Post

Where service of a notice is authorised or required by post, unless the contrary intention appears, service will be deemed to be effected at the time when the notice would be delivered in the ordinary course of post: see the various Acts Interpretation acts of the States and Commonwealth.
Blog

Thanks, but no thanks – I don’t want to inherit

It seems odd that anybody would reject an inheritance, but for some beneficiaries, there are valid reasons they do not wish to receive their inheritance.

Subscribe to Our Blog

Keeping you connected, Hicksons regularly publishes articles to keep you up to date on the latest developments. To receive these updates via email, please subscribe below and indicate which areas of law you would like to receive information on.

Top