Workplace Relations Fact Sheet Casual Conversion under the PIA A casual employee under the Pharmacy Industry Award 2010 (PIA) is one who is engaged as a casual employee and who does not have an expectation of, or entitlement to, reasonably predictable hours of work. An employer would create an expectation of reasonably predictably hours of work if he or she guaranteed the employee a particular shift (or shifts) each week on an indefinite basis at the commencement of the employee’s employment. A firm commitment to future employment and a regular pattern of work by an employer is a feature of a permanent employment relationship under the PIA. The Pharmacy Industry Award 2010 (PIA) does not allow for new employees to be engaged as casual if they work on a regular and systematic basis. Converting casuals to part time or full time status On 1 July each year, an employer has had the opportunity to convert permanent casual employees to part time or full-time status without the need to obtain the employee’s consent. Alternatively, by mutual agreement this conversion could occur at any time throughout the year. This provision will cease to operate on 1 July 2014, at which time any remaining permanent casual employees (that is, casual employees who work regularly and systematically) must be converted to permanent status. Failing to convert casual employees who work regular and systematic hours by 1 July 2014, will be a breach of the PIA and penalties can be applied to employers who neglect to meet their award obligations. How do I change someone from casual to permanent? You will need to look at the employee’s hours of work and ascertain whether or not there is a pattern of work. If there is no pattern and the hours are sporadic, they could be deemed a true casual employee in line with clause 13.1 of the PIA. You will not need to make any changes to this arrangement. However if you look at the employee’s pattern of work and you can see a pattern, you should commence discussions with the employee about converting them to permanent employment, either full time or part time depending on the number of hours they would normally work. Either way, there will be no choice to remain on a casual basis after 1 July 2014 if they are working reasonably predictable hours. Step 1: Talk to the employee. Explain the new definition of casual employment under the award. Explain that neither the employer nor the employee can change the rules in relation to casual employment, as there is no longer a choice if the employee works predictable hours. Discuss the hours that make up the pattern of work and why you do not believe they cannot continue to remain casual past 1 July 2014. www.guild.org.au DISCLAIMER: This information is current at 6 March 2014 The Pharmacy Guild of Australia has taken all reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a Guild Workplace Relations Advisor before acting. The Pharmacy Guild of Australia will in no way be liable to you or anyone else for any loss, however caused (including through negligence) which may be directly or indirectly suffered in connection with the use of this information. Step 2: Explain the benefits of permanent employment. Explain the benefits of becoming a permanent employee (see below). Step 3: Decide whether conversion will take place prior to or on 1 July 2014 If you come to an agreement, you and the employee may agree to convert the employee to permanent status before 1 July 2014. Please note that there is no requirement to do so prior to this date. If the employee is reluctant to change over or if you do not wish to do the conversion prior to 1 July 2014, explain that their employment status will need to be changed on 1 July 2014, but you are happy to wait until that time to convert them from casual to permanent status. Explain that you will/may issue them with a new contract with a 1 July 2014 commencement date. Step 4: Draw up a new employment agreement Whether you wait until July or convert the employee before the aforementioned date, you must draw up a new employment agreement to reflect this new status. Templates are available on the Guild Workplace Relations website (www.guild.org.au/workplacerelations) or by contacting the Workplace Relations manager in your state or territory branch. If there is no agreement between your employee and yourself, you may wish to take advantage of the ClauseA.9.2 which means that on 1 July 2014 you can convert staff from casual to permanent without their consent so long as you continue to give the hours that are consistent with the pattern of work which existed prior to this date. All other days of the year (except any time before 1 July 2014) you must have mutual agreement to make this change. To assist members with this process, a template letter has been drafted for members to give to their employees which explains the change and the effect on terms and conditions of employment. This letter should accompany a new employment agreement. Members are encouraged to meet with their employees to explain the change and discuss any issues or concerns the employees may have. The template letter can be found on the Guild Workplace Relations website (www.guild.org.au/workplacerelations). What happens to their wage? What entitlements do they get? In lieu of the 25% casual loading those casual employees received, they will receive the following benefits as a permanent employee: • 4 weeks annual leave each year (paid on a pro-rata basis for part-time employees). This leave accrues progressively throughout the year and accumulates from year to year; • 10 days personal/carer’s leave (paid on a pro-rata for part time employees) which can be accessed when suffering a personal illness or injury or to care for a member of the employee’s immediate family or household when they are suffering a personal illness or injury; • Payment for public holidays that are not worked, if they fall on a day that the employee would normally be required to work; • 2 days paid compassionate leave per occasion when a member of the employee’s immediate family or household is diagnosed with a life threatening illness or sustains a life threatening injury or dies; • Up to 10 days make up pay when required for Jury Service www.guild.org.au DISCLAIMER: This information is current at 6 March 2014 The Pharmacy Guild of Australia has taken all reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a Guild Workplace Relations Advisor before acting. The Pharmacy Guild of Australia will in no way be liable to you or anyone else for any loss, however caused (including through negligence) which may be directly or indirectly suffered in connection with the use of this information.