New Ruling Says Casual Workers Are Entitled to Paid Leave, But What Does That Mean for You?

Here’s what you need to know.

The coronavirus pandemic has left thousands of workers across Australia without a job. For casual workers facing reduced hours, it’s been a particularly tough time.

While full-time and part-time employees accumulate annual leave or sick leave, casuals have no entitlements to fall back on while they're out of work. 

Plus, there are many casuals who aren’t eligible to receive the JobKeeper payment. Despite the scheme being introduced to provide workers with $1,500 a fortnight, only casuals who have been at their job for more than one year can get it.

However, the future is looking a little brighter because last week a Federal Court ruling found that casuals who work full-time hours should be entitled to the same paid leave entitlements as full-time employees.

The ruling means that employers could have to backpay claims worth up to $8 billion.

At this point you’re probably wondering: Does this mean I’ll be receiving a massive payday?

Well, it’s slightly more complicated than that, so let’s go through it together.

What was the case?

The Federal Court case centred around the labour hire firm WorkPac and employee Robert Rossato. Mr Rossato was employed on a casual basis, on rolling contracts over a three-and-a-half-year period.

He was paid 25 per cent loading on top of his usual wage, which is what casual workers receive for not being given other benefits like annual leave.

As the ABC reports, the Federal Court found that because Mr Rossato's employment was "regular, certain, continuing, constant and predictable", and he was given rostered shifts in advance, he should be eligible for the same entitlements as a full-time employee.

The decision means Mr Rossato should be awarded entitlements such as annual leave, sick leave and carer's leave, along with being compensated for working on days like Christmas.

WorkPac argued that this would result in "double-dipping", as Mr Rossato would be receiving 25 per cent casual loading, as well as the paid benefits.

Except, the Federal Court held that Mr Rossato should forfeit his casual loading if he's to be considered a permanent employee.

What does the decision mean for me?

Ultimately, the Federal Court's decision redefines what it means to be "casual". 

Unfortunately, it's not excellent news for all casual employees. However, if you're a casual and you've been working permanent hours, you should be able to ask whether you're entitled to the same benefits as part-time and full-time workers. 

The decision could have an enormous impact on businesses around the country, considering around 1.6 million people in Australia are in casual work and working steady hours. 

Not everyone has been supportive of the Federal Court's decision. According to the ABC, The Australian Industry Group has highlighted the massive implications for businesses.

"Really, the Government now and Parliament need to act to change the legislation to overcome this decision, or it really is going to have a major effect on employers," the Australian Industry Group's Steve Smith said.

Some businesses are crying foul that they'll have to pay 25% casual loading and paid leave. If you treated your workers as permanent workers all along you wouldn't be in this mess! You were caught using the casuals rort: now you must face the consequences.

— Unions NSW (@unionsnsw) May 22, 2020

Can I expect a big payday? 

Sadly, not yet.

There's already a chance that the Federal Court's decision could be overruled by the government, with Industrial Relations Minister Christian Porter saying the ruling would be bad for businesses that have already suffered financially due to COVID-19.

"During the COVID-19 challenge we obviously face enormous hurdles going forward to regrow employment, and this decision is unfortunately a driver of uncertainty into the employment market," Mr Porter said. 

Although, opposition spokesman Tony Burke claimed Labor would oppose any legislation to overrule the decision.

"And if the government thinks after all this insecurity that people are living in Australia at the moment, that he wants to change the law to give people less job security—we're there for that fight," Mr Burke said.

There’s a clear message here for any business that wants to double dip. Don’t. You can’t roster people as permanent employees and then try to get away with assigning them a lack of security as casuals. https://t.co/hP4bYJwnnC

— Tony Burke (@Tony_Burke) May 20, 2020

Now, we'll just have to wait and see whether the government will make any legislative changes to prevent casual employees who work permanent hours from requesting entitlements.

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