Casual Service counts towards redundancy pay

Very recently it was found by a full bench of the Fair Work Commission, in the case of AMWU v Donau [2016] FWCFB 3075, that a period of “regular and systematic” casual service, followed by a transition to permanent employment with the same employer, will be included in the service period used to calculate employee’s entitlement to notice of dismissal and redundancy pay.  So don’t get caught!

Usually casual employees are not entitled to redundancy pay or dismissal notice as per section 123 of the Fair Work Act 2009 which excludes casuals.  However, this is only if the employee is a casual at the time of their dismissal.   This case however, has changed that when continuous services includes any period of regular and systematic casual employment.

Interesting decision when casuals receive a loading, usually 25%, as a form of compensation for the various entitlements they don’t get such as redundancy pay.