Converting a Casual to Full-Time Employment

Step 1: Identify Eligibility or Request

A casual employee may be converted to permanent employment based on one of the following:

a) Employee-Initiated Request After Trial

• The employee was hired under a casual arrangement with a view to becoming permanent after a successful trial period (as outlined in the original offer email).

• The employee has completed their trial and wishes to take up a permanent position.
  
  

b) 12-Month Employment with Regular Hours (Employer Obligation)

• The employee has been casually employed for at least 12 months.

• They have worked a regular, systematic pattern of hours for the last 6 months.

• In line with the NES and Graphic Arts Award, we are required to offer permanent employment in writing if the role can continue without significant changes.
  
  

✅ If either of the above applies, proceed to Step 2.

Step 2: Update Contract in HappyHR

1. Log in to HappyHR.
   
   

2. Go to:
   People > Employees
   HappyHR Employee Management
   
   

3. Click “View Profile” for the relevant employee.
   
   

4. In the dropdown menu, go to Employment.
   
   

5. Change the Employment Type from Casual to either Full-time or Part-time (based on agreement).
   
   

6. Update the Salary Type:

   • Use Hourly or Annual Salary, as agreed.

   • Include any relevant shift loadings in the rate if applicable (e.g., afternoon shift).
     
     

7. Click Save Updates.

📩 HappyHR will automatically send the new contract to the employee via email for review and signature.

Step 3: Update Employee Details in Xero

Once the employee has signed their new contract, update their payroll record in Xero:

🔁 TIP: Have a separate tab open for a current permanent employee to use as a reference.

1. Go to Payroll > Employees, and select the employee.
   
   

2. Under the Employment tab:

   • Change Employment Basis to Full-time or Part-time.

   • Ensure the correct Holiday Group is selected.

   • Tick “Include holidays in payslips”.

   • Click Save.
     
     

3. Under the Taxes tab:

   • Tick “Eligible for leave loading”.

   • Tick “Apply SGC on leave loading”.

   • Click Save.
     
     

4. Under the Leave tab:

   • Assign the default leave types (e.g., Annual Leave, Personal Leave).

   • Click Save.
     
     

5. Under the Pay Template tab:

   • Adjust the earnings rate based on the new contract.

   • Ensure the Superannuation Fund is correctly set.

   • Click Save.
     
     

6. Under the Notes tab:

   • Record a note with the date of change from casual to permanent employment.

   • Example: “Employee converted from casual to full-time effective 16 May 2025.”
     
     

Step 4: First Pay Run Checks

On the first pay cycle after conversion:

• ✅ Ensure pay rate is correct.

• ✅ Confirm superannuation is calculating properly.

• ✅ Verify annual leave and personal leave are accruing as expected.