Who must comply with casual employee conversion (Closing Loopholes — s 66B Fair Work Act)?
The applicability test for Comply with casual employee conversion (Closing Loopholes — s 66B Fair Work Act) (FWO and FWC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has casual employees.
What the obligation is
From 26 Aug 2024, eligible casual employees can notify their employer to convert to permanent employment.
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 reset the casual employment definition (s 15A) and notification-to-convert pathway (s 66B). Employees must work a regular pattern that suggests permanent employment for 6 months (12 months for small business employers). Employers may refuse only on fair and reasonable grounds.
The applicability test
Applies when the business has casual employees.
How the regulator frames it: All national-system employers using casual employees.
What triggers it: Eligible casual employee notification.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).
The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".
| Size band | Answer across all industries, any structure |
|---|---|
| No employees (turnover $100K–$1M) | No |
| 1–5 employees (turnover $100K–$1M) | Yes |
| 6–19 employees (turnover $1M–$3M) | Yes |
| 20–99 employees (turnover $3M–$10M) | Yes |
| 100–499 employees (turnover $10M–$100M) | Yes |
| 500+ employees (turnover $100M–$1B) | Yes |
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. You employ casuals.
- Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires casual employees.
What you must do, and when
- When due
- Employer response within 21 days; conversion follows under s 66C.
- Frequency
- When a triggering event occurs
- Evidence to keep
- Decision file note, reasons for refusal if applicable, updated employment contract.
- Status
- Current
- Priority
- High
Penalty for not complying
Maximum penalty: Civil penalty for breach of the casual conversion provisions or victimisation up to $21,840 (individual), $109,200 (small business body corporate) or $546,000 (body corporate with 15+ employees) per contravention.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so does this one: the engine uses the same rule for each.
Where it sits in the corpus
Rules Mate tracks 19 published obligations tagged "workplace", 5 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 13 of those apply outright. This obligation is rated high priority, and is triggered by events.
Regulator, legislation and tools
Regulated by Fair Work Ombudsman and Fair Work Commission.
FWO: Enforces compliance with the Fair Work Act, awards, and agreements. Investigates underpayments, brings civil penalty proceedings, and publishes compliance notices.
FWC: National workplace relations tribunal. Sets modern awards and the national minimum wage, resolves unfair dismissal and general protections disputes, and registers enterprise agreements.
FW Act: Federal workplace relations Act.
Free tools that help with this obligation:
Questions
- Who must comply with casual employee conversion (Closing Loopholes — s 66B Fair Work Act)?
- Applies when the business has casual employees.
- Do sole traders need to comply with casual employee conversion (Closing Loopholes — s 66B Fair Work Act)?
- Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
- Do businesses with 1–5 employees need to comply with casual employee conversion (Closing Loopholes — s 66B Fair Work Act)?
- Yes (1–5 employees, turnover $100K–$1M).
- When is "Comply with casual employee conversion (Closing Loopholes — s 66B Fair Work Act)" due?
- Employer response within 21 days; conversion follows under s 66C.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.