/Everyday professional

Casual to Permanent — Employer Response

The employer’s written answer to a casual employee’s notice, accepting the change or refusing it with reasons.

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employer response casual conversion letter
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[your business name]
[your address]
To, [employee name] [employee address]
[place]14 October 2026
Response — change to permanent employment
Employee[employee name]
Role[role]
Your notice received[date]
Employer[employer]
ABN—

Thank you for your written notice of [date], in which you asked to change from casual employment to part-time employment.

1. Our decision

We accept your notice. From the first full pay period on or after [date] you will be employed on a part-time basis.

2. Your new terms

Basis of employmentPart-time employment
Ordinary hours[days, hours and pattern]
Base rate$ [amount]
Classification—
Takes effect[date]

3. What changes for you

Casual loading no longer applies from the date above, so the hourly rate shown is lower than the casual rate you were paid. In its place you gain the entitlements that go with permanent employment — paid annual leave, paid personal and carer’s leave, notice of termination and, where it applies, redundancy pay. Your service as a casual counts towards continuous service.

Nothing else about your role changes unless we agree it with you in writing.

If anything here is unclear, please speak to us and we will go through it with you.

Yours sincerely [name] [title] [employer]
Australia replaced casual conversion with the employee choice pathway from 26 August 2024, phased in for non-small-business employers from 26 February 2025 and small business employers from 26 August 2025. The employer must consult the employee and respond in writing within the period the legislation sets, and a refusal must rest on one of the grounds it allows — an employer cannot simply decline. The response period, the permitted grounds and the dispute route change from time to time: check the current Fair Work rules, or ask the Fair Work Ombudsman, before sending this.

What is a Casual to Permanent — Employer Response?

This is the letter an Australian employer sends after a casual employee gives written notice that they want to become permanent. The employer has to answer in writing within the period the legislation sets, and a refusal has to rest on one of the grounds the law allows. Saying nothing is not an option, and neither is declining because you would rather not.

The letter is written by whoever handles employment decisions — an owner-operator, an HR manager, a payroll bureau acting for a client. It is read first by the employee, and potentially later by the Fair Work Commission if the decision is disputed. That second reader is the reason the wording matters: a response that names the ground relied on and explains how it applies to this employee is defensible, and one that says the request has been considered and declined is not.

The employee choice pathway replaced casual conversion from 26 August 2024, and applied to employees of non-small-business employers from 26 February 2025 and of small business employers from 26 August 2025. The direction reversed: instead of the employer offering conversion, the employee notifies and the employer responds. The response period, the grounds a refusal may rest on, and the dispute route are all set by the legislation and have changed more than once — check the current Fair Work position before sending, rather than copying a letter from last year.

This letter answers one notice. It does not vary the employment contract on its own where the answer is no, and where the answer is yes it records the change rather than replacing whatever written terms already exist. It is not advice on whether the employee is eligible — eligibility turns on length of service and on circumstances such as a current dispute or a notice period. And it does not close the matter permanently: an employee may give a fresh notice once the interval the legislation sets has passed.

What to put in a Casual to Permanent — Employer Response

These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.

FieldWhat goes in it
Employee nameFor example: Liam Beckett
Employee addressFor example: 14 Harkness Street, Newtown NSW 2042
Business nameFor example: Barton Supply Co.
Your addressFor example: Unit 7, Barton Road, Columbus, OH 43212
Employer ABN optionalFor example: 53 004 085 616
Their roleFor example: Warehouse Storeperson
Date their written notice was receivedFree text
Date you discussed it with them optionalFree text
Your decisionFree text
Changing toFree text
First pay period the change applies fromFree text
New ordinary hoursFor example: 34 hours a week, Monday to Thursday, 7.00am to 3.30pm
New base rate (casual loading no longer applies)For example: 32.40 per hour
Classification under the award or agreement optionalFor example: Storeworker Grade 2, Storage Services and Wholesale Award 2020
Ground for refusingFree text
The reason, in your own wordsFor example: The work on this site is tied to a client contract that is re-tendered every six months,…
Signatory name optionalFor example: K. Srinivasa Rao
Signatory designation optionalFor example: Honorary Secretary

How to write a Casual to Permanent — Employer Response

  1. Consult before you decide, and record it

    The legislation expects a discussion, not a decision handed down. Talk to the employee about the pattern they are working and what permanent employment would mean for their hours and pay, then put the date of that conversation in the letter. An employer who can show they consulted is in a very different position from one who simply replied.

  2. Answer inside the statutory window

    Count the days from when the written notice was received, not from when it reached the right desk. Diarise the deadline the moment the notice arrives. A late response is a breach in itself, separate from whatever the answer turns out to be, and it hands the employee a complaint that has nothing to do with the merits.

  3. If you accept, state the new terms in full

    Give the basis of employment, the ordinary hours and pattern, the new base rate, the classification under the applicable award or agreement, and the pay period the change starts from. Say plainly that casual loading stops and that paid leave, notice and redundancy entitlements begin. The employee will otherwise be surprised by their first payslip.

  4. If you refuse, name the ground and apply it

    Identify which permitted ground you rely on, then explain the specific circumstances in your own words. 'The work on this site is tied to a client contract re-tendered every six months, so we cannot commit to ongoing guaranteed hours' is a reason. 'Operational requirements' is a label, and a label is what gets tested.

  5. Tell them what to do if they disagree

    Point to the internal route first, then to the Fair Work Commission if it cannot be resolved in the workplace, and mention that the Fair Work Ombudsman can explain the process. Say that a fresh notice may be given once the interval the legislation sets has passed. Sign with a name and a title, so the employee knows who made the decision.

Common mistakes

  • Letting the response period lapse, which is a breach on its own regardless of what the answer would have been.
  • Refusing with a general phrase such as operational requirements, leaving nothing that can be tested if the decision is challenged.
  • Deciding without talking to the employee first, which removes the consultation the process expects.
  • Accepting the change without stating the new base rate, so the employee discovers the loss of casual loading on their payslip instead of in the letter.
  • Using an old casual conversion letter, which describes a process that ended in August 2024 and signals the decision was not properly considered.

Frequently asked questions

Can an employer refuse a casual conversion request in Australia?

Yes, but only on a ground the legislation permits, and the reason has to be given in writing. The grounds are narrow — broadly, that the employee still meets the definition of a casual, that there is a fair and reasonable operational reason, or that accepting would breach a recruitment or selection requirement. Preferring the flexibility of casual employment is not by itself a ground. Confirm the current list with the Fair Work Ombudsman.

How long does an employer have to respond to an employee choice notice?

A fixed period set by the legislation, running from when the written notice is received. It has been amended since the pathway began, so check the current figure rather than relying on a number you remember. Diarise the deadline on the day the notice arrives, because a late reply is a breach separate from the decision itself, and it is the easiest thing for an employee to point at.

What happens to casual loading when someone converts to permanent?

It stops from the date the change takes effect, because the loading exists to compensate for not having paid leave and notice entitlements. The hourly rate falls, and in its place come paid annual leave, paid personal and carer's leave, notice of termination and, where it applies, redundancy pay. Set out both the new rate and the new entitlements in the letter so nobody is surprised.

Does the employee's casual service count towards their entitlements?

Service as a casual generally counts towards continuous service when someone converts, which affects notice and redundancy calculations and can affect leave accrual arrangements. The detail depends on the applicable award or enterprise agreement and on the legislation as it currently stands. Check the instrument that covers the employee before you calculate anything, and say in the letter that prior service is recognised.

Is there an official form for the employer's response?

No prescribed government form exists. The requirement is a written response within the period, giving reasons where the answer is no. That is why the wording carries the weight: the letter has to identify the notice it answers, state the decision, and either set out the new terms or name the ground and explain it. The Fair Work Ombudsman publishes guidance on what the response should cover.

This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.

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