Changing Staff From Casual To Permanent: The Casual Conversion Clause

Many employees may start out as casuals, and may change to a permanent position after they have been with a business for some time. Switching your staff from casual to full-time positions is a common scenario, and can occur when both the employer and employee consent to it.

In New Zealand, due to the Employment Relations Act 2000, employees have the right to request a change to a permanent role after a period of continuous employment, with the employer only being able to refuse on reasonable grounds. It is important to be familiar with the relevant employment agreements and the employee’s rights under New Zealand law.

To follow the correct process for changing to full-time or part-time from casual, you will need to check any employment agreements, such as individual employment agreements or collective agreements, and be aware of the statutory rights provided under New Zealand legislation.

Here’s what you need to know about changing staff from casual to full-time employees in New Zealand.

What Is The Right To Request Permanent Employment?

In New Zealand, the right to request permanent employment is a provision that allows casual employees to ask for a change to their employment status after a certain period of continuous employment. This is subject to the employer’s consideration and must be based on reasonable grounds.

For example, if a casual employee has worked a full-time load for a year, they can request to change to full-time employment. If their pattern of work more closely resembles a part-time load, they can request to change to a part-time role.

This right is important as it helps set staff expectations while ensuring they know their rights. It also outlines the grounds on which an employer can refuse a change to a permanent role.

When Can You Refuse A Change From Casual To Permanent?

There are a few grounds on which you can refuse your employee’s request to change to permanent employment. These reasons might include:

• Changing to permanent employment would mean a significant adjustment to the employee’s hours
• It is reasonably foreseeable that the staff member’s position either won’t exist or will need to have reduced hours within a foreseeable period

• It is reasonably foreseeable that the hours you will need your staff to work won’t be suitable for permanent hours

What You Need To Do If You Are Employing Casual Staff

As an employer in New Zealand, you need to ensure that all of your casual employees are aware of their rights to request a change to permanent employment and the process for doing so.

You also need to ensure your employment contracts are up to date to reflect any provisions related to casual employment and the right to request permanent employment.

What Is A Casual Employment Agreement?

In New Zealand, a casual employment agreement is a contract that sets out the terms and conditions of casual employment, including the rights and obligations of both the employer and the casual employee.

It’s important to provide casual employees with a written casual employment agreement, which should include details such as the nature of the work, the expected hours, and the process for requesting a change to permanent employment.

How Do I Provide Casual Employment Agreements To My Staff?

You can provide a casual employment agreement to your staff in several ways, including:

• in person
• by mail
• by email
• by providing a link to the document on your website or intranet
• by fax

It’s good practice to keep a record of who has received a casual employment agreement and when, to ensure that you are complying with New Zealand employment law.

Can I Refuse Requests For Permanent Employment?

Yes, in New Zealand, an employer can refuse a request for permanent employment if there are reasonable grounds for the refusal. These reasons must be communicated to the employee and should be based on genuine business reasons.

Speak With An Employment Lawyer

If you need help with understanding your obligations as an employer in New Zealand, or need assistance updating your employment contracts, feel free to reach out to us for a free consult on 0800 002 184 or at [email protected].

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