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New rules for offsetting casual loading payments

February 24, 2019

Employers who incorrectly classify employees as casual instead of full-time/part-time could be responsible for back paying various entitlements under the National Employment Standards (NES) following a recent decision in the Federal Court of Australia. The regulation is intended to apply to persons who have mistakenly been classified as a casual employee during all or some of their employment. The regulation applies if:

  • an employer has paid a clearly identifiable loading to compensate a person for not having one or more relevant NES entitlement; and
  • the person makes a claim to be paid an amount in lieu of one or more of the relevant NES entitlements.

The new regulation applies to employment periods that occurred before, or that occurred on or after, 18 December 2018.

For more information, see the Fair Work Ombudsman website.