In a recent court case Federal Court of Australia Workpac Pty Ltd v Rossato, an employee that had previously been considered by their employer to be a casual employee was found not to be a ‘genuine casual employee’ and was therefore entitled to annual leave, personal leave, compassionate leave, etc in the same way as a permanent employee. It was also found that the higher pay rate received (casual loading) could not be used to offset leave entitlement obligations.
As a consequence, ASIC has updated their guidance on ASIC focus areas for 30 June 2020 to indicate that companies should provide for additional employee entitlements for past and present ‘casual’ employees who were employed in circumstances covered by the Federal Court cases.
This means you should review your casual employment arrangements and consider whether additional provisions for employee entitlements are required.
Given the complexities of the principles in the legal cases, you should also consider seeking legal advice from our team at the Quinn Group.
If you require further assistance with respect to the above or would like to know more, you are welcome to contact our team of experienced lawyers by clicking here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange conference or appointment.