The South Coast Labour Council expects many casual workers in the Illawarra will be awarded significant back pay after a Federal Court ruling on annual leave and other entitlements.
The Federal Court ruled on Wednesday that in addition to their casual loading, many long-term casuals need to be paid annual leave and other entitlements.
The Council's Secretary Arthur Rorris said the decision was long overdue.
"It clears up what has been a very murky area and one that has been abused by many employers," Mr Rorris said.
"This decision by the courts represents one of the most significant changes to our view of what casual means and what they are entitled to, and is going to benefit thousands of Illawarra workers."
Mr Rorris said higher rates of pay for casuals should never have been treated as compensation for the loss of other entitlements.
"Just because a permanent worker was paid a bit extra, it doesn't make up for the loss of four weeks for every one of those years. It doesn't make up for the time that person has lost with their family."
He expected the decision to have a significant impact at the University of Wollongong, where, he said, 70 per cent of the workforce was casual.
In a statement, the University said it was reviewing the ruling to determine what implications, if any, it might have.
The University’s enterprise agreements and policies provide clear processes and guidance for the employment and management of casual staff.
Businesses warn of monumental impact
The Illawarra Business Chamber said the Federal Court's ruling could have a monumentally negative effect on local businesses.
Executive Director, Adam Zarth, said the Chamber was urging the Federal Government to intervene.
"We are calling for a 'perma-flex' category of employment.
"That would allow regularly rostered causals to be converted to a permanent employee, given their paid leave entitlements, and in return their leave loading could be reduced to 10 per cent."
He said businesses were already under intense pressure during the coronavirus shutdown.
"The costs of this decision could indeed be significant post COVID-19. Small businesses are probably going to be in the worst position they could be to tackle this kind of decision."
The Federal Government expressed concern about the decision, and the Attorney-General, Christian Porter, confirmed it would urgently review the ruling.
