Casual workers win leave entitlements in Federal Court ruling
The Federal Court has ruled that workers who have “a firm advance commitment from their employer” to get regular ongoing shifts should be eligible for leave entitlements.
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A court has ruled casual employees may be able to claim paid leave and other entitlements if they are working regular shifts on an ongoing basis.
The full bench of the Federal Court on Wednesday handed down its decision in the Workpac v Rossato case, which found workers who had “a firm advance commitment from their employer to continuing work” should be eligible for benefits not usually available to those classified as casual in their employment contracts.
It means regular, ongoing casuals could receive paid annual leave, paid personal/carer’s leave and paid compassionate leave.
The ruling raised concerns from employers that workers would “double dip” in taking paid leave while also receiving 20 to 25 per cent loading.
The Australian Industry Group, the body representing employers, said The Fair Work Act needed to be urgently amended to define a casual employee in a simple and clear manner to address the uncertainty.
“The current laws, as interpreted in these decisions, operate as a major deterrent to the employment of casuals,” Ai Group chief executive Innes Willox said.
“With unemployment and underemployment rapidly increasing during the COVID-19 crisis, employers need to be encouraged to retain and take on casual employees – not deterred from doing so.”
The court’s decision was hailed by unions as a major victory.
Construction, Forestry, Maritime, Mining and Energy Union national president Tony Maher said it was “a fantastic decision that puts an end to the ‘permanent casual’ rort”.
“Employers must now stop with the nonsense that calling a worker a casual makes them so.
“When a job is full-time, regular and ongoing, it is permanent and deserves the security and entitlements that come with permanent work.”
Wednesday’s decision upheld the principles of the 2018 WorkPac v Skene ruling, which paved the way for casual mine workers in regular and continuous employment to claim unpaid leave entitlements as their work arrangements were in practice permanent and ongoing.
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