TOP 4 HR INSIGHTS
ELMO’s Employee Sentiment Index (ESI) https://elmosoftware.com.au is out today. Here’s are our top four key insights:
1. Australian employees are expecting a 4% pay rise, while HR professionals are planning for a slightly higher increase.
2. Over a third of employees believe individual performance should drive pay rises, yet only 22% think their organisation prioritises this.
3. Nearly half (45%) feel their income is insufficient with meeting the costs of living, with one in eight (12%) stating they are nowhere near meeting their and their family’s financial needs.
4. Burnout rates have jumped 48% quarter-on-quarter, now affecting 43% of employees. And fewer are taking breaks with annual leave usage down (29% compared to 33%) and more are turning up unwell (36% compared to 28%).
HR NEWS DIGEST – 1 in 4 Australians Still Working From Home
1 in 4 Australians Still Working From Home: A report by Gensler’s Global Workplace Survey 2025 (HRD Australia, April 30, 2025) reveals that 24% of Australians are still working from home, placing Australia as a leading country in remote work. The survey of over 16,800 full-time office workers across 15 countries highlights the ongoing prevalence of remote work and the evolving expectations of employees returning to the office, who desire more dynamic and collaborative environments with wellbeing amenities.
HR CASE STUDY – Reducing Shifts for Casual Employees Can Still Constitute Dismissal: A Crucial Reminder from the Fair Work Commission
A recent case before the Fair Work Commission (FWC) serves as a critical reminder for Australian businesses: significantly reducing a casual employee’s shifts without proper process or communication can be deemed a dismissal, carrying potential legal ramifications.
This ruling underscores the nuanced nature of casual employment and challenges the assumption that simply altering available work constitutes a non-dismissal scenario.
The case in question involved a casual employee who had worked consistent hours for over a year. Without prior warning or formal communication, the employer drastically reduced the employee’s shifts to zero.
While the employer may have perceived this as merely a change in work availability for a casual, the FWC took a different view. The Commission considered whether the employer’s actions objectively indicated an intention to terminate the employment relationship. In this instance, the complete cessation of shifts, without any discussion or explanation, led the FWC to conclude that the employer had, in effect, dismissed the employee at their own initiative.
This decision highlights a crucial distinction often overlooked: while casual employees do not typically have the same entitlements to notice of termination as permanent employees, employers cannot unilaterally cease offering work in a manner that signals the end of the employment relationship without facing potential unfair dismissal claims. The FWC will scrutinise the circumstances surrounding the reduction in shifts, paying close attention to factors such as the consistency of previous work patterns, the extent of the reduction, the communication (or lack thereof) from the employer, and the employee’s reasonable expectations of ongoing work.
For HR professionals, this ruling necessitates a re-evaluation of how changes to casual employee work arrangements are managed. Simply reducing shifts, particularly for those with a history of regular work, should not be approached casually. Instead, employers should consider the following best practices:
1. Open Communication: Engage in transparent conversations with casual employees regarding any anticipated changes in work availability. Explain the reasons for the reduction in shifts and provide as much notice as reasonably possible.
2. Formal Consultation: For significant and prolonged reductions in shifts, consider a formal consultation process, similar to what might be undertaken with permanent staff facing potential redundancy.
3. Documentation: Maintain clear records of any communication with casual employees regarding changes in their work arrangements. This documentation can be crucial in defending against potential claims.
4. Understanding Reasonable Expectations: Be mindful of the reasonable expectations of ongoing work that may have developed, particularly for long-term casual employees with consistent hours. A sudden and unexplained cessation of work for such employees is more likely to be viewed as a dismissal.
5. Seeking Legal Advice: When facing situations involving significant reductions in casual employee hours, it is prudent to seek legal advice to ensure compliance with Fair Work regulations and minimise the risk of unfair dismissal claims.
This FWC ruling serves as a timely reminder that the label of “casual employee” does not grant employers carte blanche to alter work arrangements without consequence. While flexibility is inherent in casual employment, employers still have a responsibility to act fairly and transparently.
Failing to do so, particularly when reducing shifts to the point of effectively terminating employment, can expose businesses to significant legal and reputational risks.
By embracing open communication, following due process, and understanding the nuances of casual employment, employers can navigate these situations effectively and maintain positive employee relations while mitigating potential legal challenges.
https://www.hcamag.com/au/news/general/can-cutting-shifts-to-zero-be-considered-a-dismissal/527361
