Your Casual Educator Can Now Ask to Go Permanent
The rules for turning casual work into permanent work have flipped. Under the employee choice pathway, an eligible casual now notifies you that they want to become permanent, and you must respond in writing within 21 days. You no longer make the offer. They make the request.
This matters most for workplaces that run on casuals, and early childhood education and care is one of them. Centres lean on casual educators to maintain ratios, cover leave, and manage enrolment fluctuations. Many of those educators work steady, predictable hours, and some of them can now ask to convert.
The point is simple. If a casual has the service behind them and believes they no longer work like a casual, they can start the employee choice pathway. You then have a short, defined window to respond, and you can only refuse for specific reasons.
Getting the response wrong carries risk. A late or poorly reasoned answer can lead to a dispute at the Fair Work Commission. Refusing on grounds that do not hold can leave you exposed. The good news is that the process is manageable once you know the steps of the employee choice pathway.
Start here:
-
Work out which of your casuals have reached the service milestone, being 12 months for a small business or 6 months otherwise.
-
Watch for any written notice that a casual wants to convert, and treat it as a clock starting.
-
Consult the employee, then respond in writing within 21 days.
-
Only refuse on the grounds the law allows, and give your reasons in writing.
If you read nothing else, read those four points. They contain the core of the employee choice pathway. The sections that follow explain who is eligible, how to respond, and where early childhood centres tend to trip up.
Digging Deeper
What changed, and why it matters
For years, casual conversion sat with the employer. Businesses with 15 or more staff had to offer eligible casuals a move to permanent work. That duty to offer has gone. In its place is an employee-driven process, the employee choice pathway, built into the National Employment Standards.
The pathway opened for most employers on 26 February 2025. For small-business employers with fewer than 15 employees, it opened on 26 August 2025. Since those dates, eligible casuals hold the pen.
There is a related change worth knowing. Since 26 August 2024, a new definition determines who is a casual. A person is a casual only where there is no firm advance commitment to continuing, indefinite work, judged by the real substance of the relationship, not just the contract. A casual loading or casual rate must also apply.
That definition sits underneath the employee choice pathway. A casual who has drifted into a firm, regular, ongoing pattern may no longer fit the casual description, and that is exactly the person likely to ask to convert.
Who can use the pathway, and when
Not every casual can start the employee choice pathway. An eligible casual must meet two core tests before using the employee choice pathway.
Service. They have been employed for at least 6 months, or at least 12 months if you are a small business employer.
Belief. They believe they no longer meet the definition of a casual employee.
A few limits apply. Service before 26 August 2024 does not count towards the milestone. A casual cannot give notice while a related dispute is on foot. They also cannot give notice if, in the previous 6 months, you refused an earlier notice or a dispute about conversion was resolved.
For your workforce planning, the practical trigger for the employee choice pathway is steady hours over time. A casual educator who works the same days each week, term after term, is the classic candidate to use the employee choice pathway.
The 21-day response, and the only grounds to refuse
Once a casual starts the employee choice pathway with written notice, a clock starts. You must consult the employee first, then give a written response within 21 days. Silence is not an option.
If you accept, the response states the new employment type, the hours after the change and the date it takes effect. If you refuse, you must give your reasons in writing.
You can only refuse on set grounds. In plain terms, these are:
-
The employee still meets the casual definition.
-
There are fair and reasonable operational grounds, for example, the role will not exist, or hours will change substantially, in the near future.
-
Accepting would breach a recruitment or selection process required by law.
Reasons must fit the individual, not a blanket policy. A general preference for a casual workforce is not a lawful ground to refuse the employee choice pathway. If a disagreement cannot be settled at the centre, either side can take it to the Fair Work Commission.
Why early childhood feels this first
Early childhood centres are built for this conversation. Ratios must be met every day, so casual cover is constant. Enrolments shift across the year, and educators often pick up regular shifts that quietly become a fixed pattern.
That is the setting where the employee choice pathway bites. An educator who has covered the same room, on the same days, for a year is exactly who the law had in mind. When they use the employee choice pathway, a centre needs a clear, prompt and lawful answer.
There is an upside here. Converting a reliable casual to permanent can steady your roster, aid retention and support continuity of care, which families and regulators both value. The employee choice pathway is not only a compliance task. Handled well, it can strengthen your team.
The statement you must hand out
One duty is easy to overlook. You must give every casual the Casual Employment Information Statement. It explains casual work, the new definition and the employee choice pathway to permanent employment.
The timing has teeth. Give it to new casuals before they start, or as soon as possible after they start. Then give it again:
-
Small business employers, after 12 months of employment.
-
Other employers, after 6 months, after 12 months, and then every 12 months.
For a centre with many casuals, this is an administrative rhythm worth setting up once. Missing it can incur penalties and undercuts the fair process the employee choice pathway is meant to deliver.
What smart centres are doing now
You do not need to wait for the first notice to arrive. A little preparation makes the employee choice pathway routine rather than stressful.
Work through this now:
-
List every casual and their start date, counting service from 26 August 2024.
-
Flag anyone at or near the 6- or 12-month milestone for your size.
-
Note who works a firm, regular pattern, since they are the likely candidates.
-
Set a reminder system for the Casual Employment Information Statement intervals.
-
Prepare a simple employee choice pathway response template, so a notice does not catch you cold.
To make this straightforward, we have built a companion tool for the pathway.
Download the Casual to Permanent Response Kit for Early Childhood Centres: [placeholder link]
It includes an eligibility tracker, the 21-day response steps, and plain-language notes on the grounds for refusal.
The bigger picture
Casual work is a large and settled part of the Australian labour market, and care sectors like early childhood depend on it. The reforms do not try to end casual work. They try to make sure that people doing ongoing, predictable work can choose security when it suits them.
Australia is not alone in this. Many countries have moved to give insecure and on-demand workers a clearer route to stable employment, driven by the rise of casual and platform work. The Australian changes reflect that global shift and are adapted to our own system.
For centre owners, the message is practical. Know who is eligible, respond on time, refuse only on lawful grounds, and keep the Casual Employment Information Statement current. Do that, and the employee choice pathway becomes a simple part of running your centre, not a threat to it.
SBAAS helps early childhood centres and other small businesses handle changes like these with confidence, before they become disputes. If you would like to talk through your casual workforce, or you want to be ready for the first notice, we can help. Learn more about how we work at https://sbaas.com.au/about-us/ and start the conversation.
Sources
Fair Work Ombudsman. (2025). New rules for changing from casual to permanent employment. https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/casual-employment-changes/casual-conversion
Fair Work Ombudsman. (2025). Becoming a permanent employee. https://www.fairwork.gov.au/starting-employment/types-of-employees/casual-employees/becoming-a-permanent-employee
Fair Work Ombudsman. (2025). Casual Employment Information Statement. https://www.fairwork.gov.au/employment-conditions/information-statements/casual-employment-information-statement
Federal Register of Legislation. (2024). Fair Work Act 2009 (Cth). https://www.legislation.gov.au/C2009A00028/latest/text
Eric Allgood is the Managing Director of SBAAS and brings over two decades of experience in corporate guidance, with a focus on governance and risk, crisis management, industrial relations, and sustainability.
He founded SBAAS in 2019 to extend his corporate strategies to small businesses, quickly becoming a vital support. His background in IR, governance and risk management, combined with his crisis management skills, has enabled businesses to navigate challenges effectively.
Eric’s commitment to sustainability shapes his approach to fostering inclusive and ethical practices within organisations. His strategic acumen and dedication to sustainable growth have positioned SBAAS as a leader in supporting small businesses through integrity and resilience.
Qualifications:
- Master of Business Law
- MBA (USA)
- Graduate Certificate of Business Administration
- Graduate Certificate of Training and Development
- Diploma of Psychology (University of Warwickshire)
- Bachelor of Applied Management
Memberships:
- Small Business Association of Australia –
International Think Tank Member and Sponsor - Australian Institute of Company Directors – MAICD
- Institute of Community Directors Australia – ICDA
- Australian Human Resource Institute – CAHRI
Our Consulting Services
Management Consulting
Compliance & Risk
Professional Writing Services
Consistency in Communication
Small Business Consulting
Sustainable Businesses
Start-ups
Set-up for Success
Further Reading
The Employee Choice Pathway
The rules for casual conversion have flipped. Under the employee choice pathway, eligible casuals now tell you they want to go permanent, and you must respond in writing within 21 days. For early childhood centres that run on casuals, this changes how you roster and plan. Here is who is eligible, how to respond, and the few grounds on which you can say no.
Workplace Policies Expire. When Did You Last Check Yours?
Review your workplace policies at least once a year, and immediately when the law, your business, or your risks change. Since January 2025, employers have absorbed criminal wage theft laws, the right to disconnect and Payday Super, and new privacy policy rules starting on 10 December 2026. This guide covers how often to review, what triggers an early review and where to start.
You Just Screened Out Your Best Candidate. They Were 52.
A quarter of Australian employers now call a 52-year-old an older worker. AI screening tools are being sued in the United States for rejecting applicants over 40. Meanwhile, KPMG puts the value of getting more over-55s into work at $29 billion a year. Here is what age bias actually costs, and how to take it out of your hiring in 30 days.
Your Honest Ad Might Still Be Breaking the Law
You did not lie. You did not mean to mislead anyone. You believed every word. And you can still be on the wrong side of the law. That is the hard truth about advertising in Australia: good intentions are not a defence. What matters is the impression your words leave, not the honesty behind them. Here is how to stay on the right side of the line.
The Contractor on Your Books Might Now Be an Employee
Since August 2024, the paperwork no longer settles whether a worker is an employee or contractor. A new Fair Work test looks at the real substance of the relationship, not the label on the agreement. For allied health practices built on contractor clinicians, that change carries real risk. Here is what the test asks, and how to check your arrangements before an audit or a dispute does it for you.
Australia Is Offshoring Its Own Future Workforce
Telstra, NAB, Officeworks and Woolworths have all moved corporate roles offshore this year. Accounting firms have been doing it for a decade. The roles leaving are the ones that trained a generation, and youth unemployment now sits at more than double the national rate. Here is what the data shows, and what small businesses can do about it.