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How is casual service counted toward a minimum employment period?

How is casual service counted toward a minimum employment period?

How is casual service counted toward a minimum employment period?

A worker doesn’t need a full year on the books as a permanent employee to be protected from unfair dismissal. A recent Fair Work Commission decision has confirmed that time spent as a casual can count too, provided certain conditions are met.

This has real consequences for Gold Coast businesses in hospitality, retail, tourism and other sectors that rely on casual staff during peak periods before offering permanent roles. Local employers who mix casual and permanent staff should understand exactly how this rule works, and it’s a question worth raising with a Gold Coast employment lawyer before a dispute arises.

The minimum employment period explained

Under the Fair Work Act 2009 (Cth), an employee must complete a minimum employment period before they’re protected from unfair dismissal remedies (although they are not protected from general protections remedies). That period is:

  • 12 months, if the employer is a small business (fewer than 15 employees)
  • 6 months, for all other employers

Overlooking or misunderstanding this calculation (for example by failing to include employees of associated entities in the headcount) is one of the more common and sometimes costly mistakes a business lawyer on the Gold Coast sees among local employers.

The question that trips many employers up is how that period is actually calculated, particularly where an employee has moved from casual to permanent employment. Do the casual months count, or does the clock only start ticking once the employee becomes permanent? It’s a technical calculation, and one many businesses only think about once a dispute has already started, which is precisely when advice from a Gold Coast solicitor experienced in employment matters becomes valuable.

When casual service counts toward the minimum period

Section 384(2)(a) of the Fair Work Act 2009 (Cth) provides that a period of casual service will count towards the minimum employment period only if:

  • the employment was as a regular casual employee, meaning the work was performed on a regular and systematic basis; and
  • during that period, the employee had a reasonable expectation of continuing employment on a regular and systematic basis

Both conditions must be assessed carefully, and it’s exactly the type of technical detail an employment lawyer on the Gold Coast is trained to unpack.

If both conditions are met, the casual period is added to any later permanent service when working out whether the minimum employment period has been reached. This is a nuance that trips up many small businesses, and it’s one of the more common questions Gold Coast business lawyers field from employers.

What happened in Talau v Tegrity Services

This exact issue was tested in Talau v Tegrity Services Pty Ltd [2026] FWC 2150, decided on 19 June 2026. Decisions like this are closely watched by any solicitor on the Gold Coast advising employers on workplace risk.

Lachlan Talau started as a casual Support Worker and Business Administration employee in October 2023. He converted to a permanent part-time Operations Manager role in February 2025 and was dismissed in September 2025, after roughly seven months as a permanent employee. Tegrity Services, a small business employer, argued that seven months fell well short of the 12-month minimum, and that Mr Talau’s earlier casual service shouldn’t be counted.

Tegrity accepted that Mr Talau had been a regular casual employee. The entire dispute turned on whether he had a reasonable expectation of ongoing, regular work during that casual period. This kind of factual dispute is exactly why many businesses turn to a Gold Coast business lawyer early, before matters reach the Commission.

The employer pointed to a July 2024 email offering permanent employment, arguing Mr Talau had turned it down because of his university studies and a tutoring job on the side, and that this showed he never really expected steady, ongoing work. Commissioner Walkaden rejected that argument. The email didn’t identify the specific role being offered, so it couldn’t prove Mr Talau had rejected the same job he later accepted. The Commissioner also preferred Mr Talau’s evidence that the two had discussed his future with the company throughout his employment.

The payroll records told their own story. Across roughly 16 months, Mr Talau’s fortnightly hours varied, but the pattern of engagement was consistent and ongoing. Cases like this show why accurate payroll data matters, something a lawyer on the Gold Coast reviewing employment records might ask for.

The fluctuation in hours didn’t defeat the finding that the period of casual employment should be included. What mattered was the frequency and duration of the engagement as a whole.

The Commissioner also confirmed something worth remembering: outside commitments like study or a second job don’t cancel out a reasonable expectation of continuing work. On that basis, the casual period counted, Mr Talau met the minimum employment period, and the jurisdictional objection was dismissed.

The matter now proceeds to a case management conference to deal with the unfair dismissal claim itself. This decision is already a reference point that Gold Coast business lawyers are raising with clients managing casual workforces.

What this means for Gold Coast employers

Small businesses across the Gold Coast, particularly in tourism, hospitality and retail, often build up a casual workforce ahead of peak seasons before converting reliable staff to permanent roles. This decision is a reminder that the eligibility clock for unfair dismissal remedies may have started well before that conversion date. A Gold Coast business lawyer can help review employment contracts and rostering practices to identify this risk before it becomes a dispute.

Employers should keep clear records of rostered hours, casual engagement patterns and any conversations about future employment. A short permanent stint isn’t, on its own, a safe basis to assume an employee falls outside unfair dismissal protections, and an ambiguous offer email won’t prove an employee rejected ongoing work. Getting advice from a Gold Coast employment lawyer before dismissing a recently converted casual employee can help avoid an unnecessary and costly dispute.

If you’re a Gold Coast business dealing with a casual conversion, dismissal or unfair dismissal claim, QBM Lawyers can review your employment contracts and records, explain how the minimum employment period applies under the Fair Work Act 2009 (Cth) and represent you in Fair Work Commission proceedings where required. Contact our team to arrange a confidential discussion about your matter.

Frequently Asked Questions

No. It only counts if the employment is as a regular casual employee and the employee had a reasonable expectation of continuing work on a regular and systematic basis.

Small business employers (fewer than 15 employees including in associated entities) require 12 months of qualifying service. Other employers require 6 months.

Not necessarily. The Fair Work Commission has confirmed that outside commitments don’t automatically cancel out a reasonable expectation of ongoing employment.

Fluctuating hours alone won’t defeat a claim. The Commission looks at the overall frequency, duration and pattern of engagement rather than requiring identical hours each week.

Keep accurate payroll and rostering records, document conversations about permanent roles clearly, and seek advice from a Gold Coast employment lawyer before dismissing an employee.