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Casual conversion and sponsored staff: when the employee choice notice starts the nomination

A casual on a temporary visa can give notice to go permanent after 6 months. Answer within 21 days, then draft the full-time pay against $79,423 in 2026.

In short: A casual can give written notice to become permanent after 6 months, or 12 months in a small business. The employer must answer in writing within 21 days. If you plan to sponsor that worker, accept. A 482 nomination needs guaranteed annual earnings of at least $79,423.

The notice that arrives before the nomination

A Richmond restaurant group called our commercial practice in September. Their sous chef, Tomas, had worked a casual roster for 8 months on a 485 visa, the same five shifts every week. The owners had already asked the migration team about a 482. Then Tomas handed in a written notice under the employee choice pathway.

The owners read the notice as a complaint. We read it as the sponsorship file starting early. Fair Work and the Department were about to ask the same question. Is this a permanent, full-time position with assured earnings? The answer had to match in both places.

What the Fair Work Act asks first

Since 26 August 2024, a person is casual only where there is no firm advance commitment to ongoing work. They must also receive a casual loading or casual rate. The test looks at the real substance of the relationship, not the label on the contract. A regular roster alone does not make someone permanent.

The employee choice pathway gives casuals a route out. After 6 months, or 12 months with a small business of fewer than 15 employees, a casual can give written notice. The employer must consult, then respond in writing within 21 days. A refusal is lawful on three grounds only. The employee still meets the casual definition. There are fair and reasonable operational grounds. Or acceptance would breach a recruitment process required by law.

StepRule
Eligibility to give notice6 months employed, or 12 months with a small business
Employer responseIn writing within 21 days, after consulting on status, hours and start date
When the change startsFirst full pay period after the response, unless both agree another day

A casual on a temporary visa has given you an employee choice notice. Where do you stand?

Why the migration team wants the notice accepted

A 482 nomination states the worker's guaranteed annual earnings. For nominations lodged from 1 July 2026, that figure must be at least the Core Skills Income Threshold of $79,423. It must also meet the market salary rate for the role. A casual roster promises nothing in advance, so it produces no guaranteed figure. Our note on the three 482 salary tests explains what the Department counts.

The sponsor obligations point the same way. A standard business sponsor must employ the worker under a written contract. Annual earnings must stay at or above the nominated figure. A casual engagement that drops to zero hours in a quiet month cannot keep that promise. The 186 Temporary Residence Transition stream then needs 2 years of full-time sponsored employment. Casual years do not count.

Tomas is the usual case. A student, 485 or working holiday maker becomes the person the business cannot lose. His casual months are not wasted. The Core Skills stream asks for 1 year of experience. Casual work counts where it equals 12 months full-time. Accepting the notice turns the roster into the contract the nomination needs.

The pay clause when the loading comes off

Conversion changes the arithmetic. A casual is paid a loading, commonly 25 per cent, in place of paid leave and notice. A permanent employee loses the loading and gains the leave. Employers often convert at the award base rate and assume the nomination will follow. It will not, if the new base salary sits below the threshold. We draft the pay clause against $79,423 first, then test it against the market rate. Superannuation, tips and roster-dependent penalties do not count. Every sponsorship cost stays with the employer and cannot be recovered through a lower rate or a deduction.

Estimated government charges$0

Turnover of $10 million or more lifts the levy to $1,800 a year. Only the visa charge may be paid by the worker.

Refusing without creating a second problem

Some notices should be refused. A pop-up venue with no work after summer has operational grounds, and the written response must state them. What an employer cannot do is cut hours, change the pattern of work or end the engagement to avoid the obligation. Giving notice is a workplace right. Adverse action for exercising it is unlawful, and sham casual arrangements carry their own penalties. A refusal followed by fewer shifts reads badly to the Fair Work Ombudsman and to the Department next year.

How the two files run together

  1. Day 1 The notice arrives. The commercial team diarises day 21.
  2. Within 21 days Consultation on status, hours and start date, then the written acceptance. The contract is drafted with the base salary tested against $79,423.
  3. First full pay period after the response The change takes effect. Payroll removes the loading and adds leave. The payslips now show the salary the nomination will quote.
  4. Nomination Sponsorship, if not already held, and the nomination are lodged with the signed contract. The business pays the levy.
  5. Two years after the full-time start The 186 count is complete, if the worker has held the 482 throughout.

Before you respond to the notice

Our commercial practice drafts the written response and the permanent contract. The migration team builds the nomination from that contract, so the two never disagree. Our note on employment contracts for sponsored staff covers the clauses the Department reads. If a notice has landed and a visa is involved, speak to us before day 21.

Figures verified against Home Affairs visa pricing as at 1 July 2026. Employee choice rules from the Fair Work Ombudsman, read 9 October 2026. Salary threshold, sponsor obligations and 186 rules from Home Affairs, read the same day.

Frequently asked questions

Can a casual employee on a 485 visa give an employee choice notice?

Yes. The pathway turns on the employment, not the visa. After 6 months, or 12 months in a small business, a casual can give written notice if they believe they no longer fit the definition.

Do we have to accept the notice if we plan to sponsor the worker anyway?

You must respond in writing within 21 days, and you can only refuse on the listed grounds. If sponsorship is planned, acceptance usually serves both purposes, because the nomination needs a permanent full-time contract.

Can a 482 visa holder be employed as a casual?

We advise against it. The sponsor must employ under a written contract and keep annual earnings at the nominated figure. A casual engagement with variable hours cannot show that.

Does casual work count towards the 186 Temporary Residence Transition stream?

No. That stream needs 2 years of full-time sponsored employment in the 3 years before the application. Casual work can count towards the 1 year of experience for the 482 where it equals 12 months full-time.

Can we reduce the base salary after conversion to offset the sponsorship levy?

No. Sponsorship charges and the levy stay with the business and cannot be recovered from the worker. The base salary must also stay at or above $79,423 and the market rate for the role.

General information as at 9 October 2026. Not legal advice. Employee choice notices, sponsorship obligations and visa conditions turn on your own contracts, award coverage and facts. Obtain advice before you respond to a notice, vary a contract or lodge a nomination.

Next step

Ready to act on this?

Book a consultation and we apply it to your facts: the visa, the contract or both. Fixed fee quoted in writing afterwards.