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Changing your staff from casual to full or part time status remains far more common than converting full time workers to casuals – provided both you and your employees agree to the change.
But what about the reverse? Is it possible to convert your full time (or part time) employees to casual roles, and how might this affect your Employment Contracts?
Why Would You Want To Change Staff From Full Time To Casual?
There are several reasons why an employee may request to move from full time to casual work – for instance, to retain their connection with the company while they explore permanent opportunities elsewhere. Equally, some employers may decide to offer casual contracts as a solution to fluctuating business needs or to introduce greater flexibility into their operations.
In today’s evolving work environment in 2025, businesses are increasingly embracing flexible staffing models. Whether it’s due to changes in operational requirements or the ongoing effects of a post-pandemic economic shift, reducing the number of permanent roles in favour of casual work is becoming more prevalent. For further insights on managing these transitions, you might also explore our article on Business Structure Considerations and review our guide on Employment Contracts for Executives.
It is also important to remember that some staff may be made redundant as part of an organisational restructure, and then offered the option to continue as casual staff. In such cases, ensuring transparency and proper consultation can help manage expectations and minimise disputes.
What Are the Implications?
In a notable 2025 case, employees brought unfair dismissal claims after being made redundant and subsequently offered casual positions. Fair Work ultimately ruled in favour of the employer, recognising that the decision was driven by genuine operational needs. For more details on how such cases are handled, you might review our article on Unfair Dismissal and our discussion on liability limitations which often arise in similar scenarios.
Even though the decision favoured the employer in that instance, it remains crucial to consult with a lawyer before making any changes. Employees continue to be an essential part of your operations, and mismanaging such transitions could not only foster resentment but also expose your business to further unfair dismissal claims. Additionally, ensure you correctly classify your workers – for guidance on differentiating between employees and contractors, refer to our article on Difference Between Employee and Contractor.
With updated Fair Work guidelines now in effect for 2025, reviewing your Employment Contracts and internal policies is more important than ever. This due diligence helps ensure that the conversion process is transparent and compliant, reducing the risk of disputes and facilitating smoother organisational change.
Contact An Employment Lawyer
Options such as making staff redundant to then offer casual employment are inherently risky without expert guidance. As highlighted above, if these processes aren’t handled correctly, employees may initiate unfair dismissal claims. For current advice and to ensure your actions are fully compliant with the latest legal requirements, it’s wise to consult with an experienced employment lawyer.
Changing Employment Contracts and staff classifications is a complex process that should never be taken lightly. If you’re contemplating these changes, speak with our knowledgeable employment lawyers who are up to date with 2025 regulations. You can also check our guide on Changing Your Business Structure for additional context on managing organisational transitions.
We can be reached for a free, no-obligations consult on 1800 730 617 or at team@sprintlaw.com.au.
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