After sick leave, I was told to switch from permanent to casual: what should I check?

Separate the contract change from the threat

When your employer asks you to move from permanent to casual after a period of sick leave, the first step is to separate the proposed change to your contract from any threat of dismissal. Under Australian national workplace law, a sham arrangement can occur if an employer threatens to dismiss you in order to re-engage you as a casual doing substantially the same work, or if the employer makes a knowingly false statement to induce you to accept casual status. However, not every switch to casual is prohibited. A genuinely agreed change is different from a prohibited threat, but consent alone does not settle all classification and entitlement requirements. The timing of your illness, the actual duties you perform, whether you truly consent, and the reason given by the employer all need to be assessed separately. A higher casual hourly rate does not automatically resolve those questions.

Keep your original employment documents

Before making any decision, preserve the evidence of your current arrangement. Keep your permanent contract, records of your ordinary hours, your leave balance, any sick-leave notifications you have given, and the employer's proposal for the new casual role. Note whether the work itself will actually change, or only your employment status and entitlements. Record who raised the change, when it was raised, and what consequence was described if you declined. If the employer asks you to sign a statement saying the change is voluntary, but that does not reflect your understanding, do not sign it. Your signature could be used later to argue that you consented.

Ask what happens to each entitlement

Ask the employer for the proposed start date, the number of hours, the pay rate, any casual loading, and how your accrued leave and continuous service will be treated. Ask for the reason for the change, and ask directly whether your employment would end if you do not accept the proposal. Keep any medical evidence within the relevant confidential process—do not share it broadly. When comparing the two arrangements, look at both the hourly cash amount and what changes to paid leave or guaranteed work. Do not assume that either permanent or casual status is always better; the comparison depends on your specific situation.

Get advice before making an irreversible response

If dismissal is threatened or has already occurred, seek employment advice promptly. Bring the dated records you have kept. Different legal routes—such as unfair dismissal, general protections, or discrimination claims—have different eligibility criteria and time limits. This article does not classify every arrangement as lawful or unlawful, and it does not prove a retaliatory motive from timing alone. It identifies the facts you need to gather before accepting, refusing, or challenging the proposed switch. A lawyer or a community legal centre can help you assess the strength of your case.

Hypothetical illustration: casual conversion or threatened redundancy

Imagine you are a permanent part-time worker who took three weeks of sick leave for a medical condition. On your return, your manager says you must move to casual, otherwise your role will be made redundant. The manager says the casual rate is higher, so you will not lose money. You are unsure whether the work will change. In this situation, you would first ask for the new contract in writing, including hours and pay. You would ask whether your sick leave balance will be paid out or preserved, and whether your service for long-service leave continues. You would also ask why the change is needed now, and whether the redundancy threat is real. You would not sign anything yet. You would take your records to an adviser and ask: 'Does this threat to make my role redundant if I refuse casual conversion amount to a sham arrangement?'

Next steps if the issue is unresolved

If the employer does not provide clear answers, or if you believe the change is not genuine, you can raise the issue internally in writing, asking for a response. If you are dismissed or forced to resign, you may have a claim under general protections or unfair dismissal laws, but you must act quickly because time limits apply. This article does not create a deadline for the employer to respond, and it does not guarantee any outcome. The key is to document everything and seek advice before the situation becomes irreversible.

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