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Why employers should update their casual employment contracts

28 February 2019
DWF | General Contracts
The Federal Government has responded to the Full Federal Court decision in WorkPac Pty Ltd v Skene [2018] FCAFC 131 by making a new regulation - the Fair Work Amendment (Casual Loading Offset) Regulation 2018.

The purpose of the new regulation is to enable employers who are sued by casual employees for National Employment Standard (NES) entitlements that casuals are not entitled to, to offset from those claims the amount of the casual loadings paid to the employee.

The regulation applies if:

  1. A person is employed by an employer on the basis that the person is a casual; and
  2. The employer pays the person an amount that is clearly identifiable as an amount paid to compensate the person for not having one or more relevant NES entitlements; and
  3. During some or all of the employment period, the person was in fact an employee other than a casual employee for the purpose of the NES; and
  4. The person makes a claim to be paid an amount in lieu of one or more of the relevant NES entitlements.

The best way to make it clear that a casual employee is paid a loading to compensate them for not having one or more relevant NES entitlements is to make this clear in the casual employee’s letter of appointment.

For further information please contact Mark Curran.

Further Reading