Navigating the Casual-Employment Reforms: A Practical Guide for Medical Practices

A common feature of employee engagement within Australia’s workforce and the healthcare sector, more specifically, is casual employment. Rosters often need to be flexible to accommodate patients, practitioners’ availability and seasonal fluctuation. However, due to the recent “Closing Loopholes” reform to the Fair Work Act, the requirements for who is considered a casual worker have changed, along with how they can convert to permanent employment.

 We know these reforms add another element for medical and allied health practices to think about within an already complex, highly regulated industry. Payroll tax and workplace entitlement regulations are constantly changing, which may feel overwhelming to keep up with.

 This article aims to provide some clarity around the reasons for these changes; help reduce your risk and give you some peace of mind.

1. Who counts as a casual now?

In the healthcare sector, a worker is considered a casual if:

  • There is no firm advance commitment to ongoing work, which is assessed on the actual nature of the work, not only the contract

  • They receive a 25% casual loading or a specific casual rate under an award (which in medical and healthcare is commonly the Nurse Award 2020 and the Health Professionals and Support Services Award 2020)

In most medical practices, the staff likely to be casual workers are nurses and administration/reception staff, with doctors only occasionally engaged this way.  Employed allied health professionals are often employment in accordance with the Health Professionals and Support Services Award 2020.  Doctors are more often engaged as contractors under service agreements, but if directly employed (usually not in accordance with an Award of course), the same test applies.

The awards make clear that if employees work regular, predictable hours with an ongoing expectation of work, they may not legally be “casuals” despite what the contract says.

This means you can't rely solely on casual contracts. Regulators will examine the actual work pattern your staff follow, not their job label. If misclassified, this can lead to back payments for employee entitlements, like annual/sick leave and superannuation.

2. Casual Conversion: Employee-Choice Pathway

Previously, employers had an obligation to offer conversion some of the time. Now, the roles have reversed, and casual employees can elect to convert whenever they choose (after 6 or 12 months of continuous service). This may seem like unfamiliar territory but there are laid out requirements that help your business stay compliant.

These new requirements are;

  • Casual employees can elect to convert to permanent employment by submitting a written notice (provided on the Fair Work Ombudsman website)

  • Employers must respond in writing within 21 days.

  • As an employer, you may only refuse if:

o   The employee still meets the casual definition (shown above)

o   Genuine operational issues make conversion not appliable to their request

In reality, this reform will become a formal, documented process, such as reviewing the business's staffing capacity and assessing how the conversion would impact operations, before refusing a long-term casual employee’s conversion request.

Therefore, if you cannot rely on a valid reason listed above to refuse the employee’s conversion, you must accept the request.

If you wish to refuse an employee’s conversion request and you are unsure which reason to rely on, we recommend getting tailored legal advice.

3. Eligibility and Transitional Rules

If you run a medical or allied health practice, this is something you’ll want to keep an eye on. Casual staff now have a clearer pathway to move into permanent roles within your business.

Here’s when your employees will become eligible to request conversion;

  • Large employers (over 15 staff): Casuals can request to convert after 6 months of continuous service.

  • Small employers (under 15 staff): Rights occur after 12 months of continuous service.

  • And for existing casual staff:

  • Large employers: First notices can be given from the 26th of February 2025

  • Small employers: First notices can be given from the 26th of August 2025

At the time this article is posted, all existing casual staff will have the ability to request conversion if they meet the 6- or 12-month mark.

Many of your casual nurses, receptionists, and allied health staff might already be close to these milestones and could soon be eligible to request conversion.

Right now, it’s a good time to check in with your casual team and make sure you’re prepared for any requests coming your way. A simple conversation can ensure you’re ready for any requests to come through and your team can handle them accordingly.

4. The Casual Employment Information Statement (CEIS)

Under the Fair Work Act, it’s now the employer’s responsibility to supply the Casual Employment Information Statement (CEIS) to causal staff members.

The CEIS gives your staff essential information about casual employment, including:

  • What it means to be a casual employee

  • How they can request to transition to permanent employment

  • The reasons an employer might refuse a request

  • What options exist for dispute resolution

When do you need to provide the CEIS?

  • Small businesses (under 15 staff): Give the CEIS to new casuals before or as soon as possible after they start and again after 12 months.

  • Larger employers (over 15 staff): Give it to new casuals before or as soon as possible when they start, then at 6 months, 12 months, and yearly after that.

How can You Legal help with CEIS?

Managing casual employment in medical and allied health practices is tricky and time-consuming. The Fair Work Ombudsman provides a template for conversion requests, but You Legal can make sure you’re handling everything correctly. We are experts on medical legal compliance and want to do everything we can to help support you and your business by:

  • Providing the CEIS Template: Giving you the latest CEIS that is tailored to your practice by our team

  • Tailored legal advice - guiding you through the employee choice pathway and assisting with drafting responses to conversion requests, as well as refusals are legally sound if needed.

6. Sham Arrangements Are Explicitly Banned

Sham contracting happens when someone is labelled as a contractor or casual, but in reality, they’re a part-time or full-time employee with all the rights and entitlements that come with that.

These latest reforms have increased up the penalties for these kinds of arrangements, including;

  • Misrepresenting/mislabelling a permanent role as casual

  • Firing a permanent worker and rehiring them as casual

  • Engaging someone as a contractor when they’re actually an employee due to the nature of the work

Penalties can be as high as $495,000 for large businesses.

In a medical practice, this might apply if, for example, your doctors or practice manager are called “contractors,” but you control their hours, fees, and how they operate within your practice. For more information about the differences between independent contractors and employees, see our previous articles - Engaging Doctors: - as independent contractors or employees

We see this situation in lots of medical practices; it’s not something to be ashamed of but it does carry serious legal and financial risks if not addressed early on.

7. Other Related Reforms

Running a medical or allied health practice means staying on top of workplace changes that affect your staff. These changes aren’t about punishing employers; they were created to make staffing arrangements clearer and more predictable.

 Here’s what’s important to know:

  • Right to Disconnect: Larger employers now need a written policy for after-hours contact. This is relevant for medical practices, as staff are often asked to check rosters, attend meetings, or respond to messages outside normal working hours.

  • Alternative Conversion Pathways: Some awards and enterprise agreements offer additional ways for casual staff to move into permanent roles. Understanding these options can help you plan staffing arrangements fairly and effectively.

Why does it matter for your practice? These reforms give you the tools to manage your team well, keep your HR systems up to date, and help staff feel more secure in their roles.

8. Practical Steps for Medical Practices

All these reforms and changes might feel a bit overwhelming, but here’s how you can get your medical or allied health practice ready:

  • Take a close look at your casual arrangements, are they genuinely casual under the new definition?

  • Update any contracts and policies, making sure they reflect the updated law and your actual rostering habits.

  • Configure your systems to issue CEIS notices and track conversion requests automatically

  • Train your managers (reception supervisors, practice managers, and clinical leads) on how to properly assess casual conversion requests and when refusal is valid and on what grounds

  • Document all notices, consultations, and responses to reduce disputes and mitigate future legal risks around casual conversion

You don’t have to handle this alone. Working with a legal expert such as You Legal, can give you peace of mind that your practice is compliant, your processes are strong, and your staff feel secure while also saving you time and stress in the long run.

How You Legal Can Help

At You Legal, we understand that compliance is about protecting the people and patients at the heart of your practice, not just labels and contracts.

If this article has prompted any concerns, we’d love to work with you to:

  • Review your contracts and employment models and provide tailored legal advice

  • Prepare policies and systems that meet the new requirements

  • Guide you through any conversion requests or disputes if they arise in the future

Final Thoughts

The new casual employment rules aren’t just legal jargon; they’re changing the way businesses, especially medical and allied health practices, manage their casual employees.

When handled correctly, these reforms can provide clarity and stable work environments for both employers and employees. If not handled correctly, they can create financial/legal risk, penalties and workplace dissatisfaction.

If you want to make sure your practice is fully prepared for these changes, our team at You Legal is here to help you navigate these reforms with confidence.

Our team has extensive experience in providing employment advice for medical and allied health practices. To discuss the next steps for your practice, contact our team here, and we will put you in touch with the best professional for your needs.

Sarah Bartholomeusz