I understand you're in a really tough spot. Discovering you've been underpaid and then having your boss try to reclassify your employment is incredibly stressful, especially when it involves people you've known for a long time. It's completely valid to feel conflicted about wanting to protect your job and coworkers while also standing up for what you're owed. It's also understandable that you feel betrayed by your boss, especially given what your coworker has told you.

It's great that you're thinking strategically about how to approach this. Let's explore your rights and the best way to communicate your needs assertively but respectfully.

I understand your frustration - this is a significant workplace law violation that affects both your past and future pay. You're absolutely right to be concerned about this situation.

Your Legal Rights

All employees working in Australia are entitled to a minimum wage. This is the minimum amount you can be paid for the work that you're doing. As a casual employee, you're entitled to specific protections that your employer has been denying you.

Casual employees are also paid: a casual loading (a higher pay rate for being a casual employee), or a specific pay rate for being a casual employee. This casual loading compensates you for not receiving paid leave entitlements that permanent employees get.

Your Current Situation

You've been classified and paid as part-time while actually working as a casual employee. This means you've been:

• Underpaid by missing out on casual loading
• Not receiving the correct minimum wage for your employment type
• Potentially missing penalty rates and allowances

Employer Obligations

Employers must pay the correct rate of pay for all hours that the employee is required to attend work, including for work meetings and training. Your employer has a legal obligation to pay you correctly regardless of their financial situation.

The fact that your coworkers raised this issue two years ago suggests your employer was aware of the problem but chose not to address it. This makes their claim of not knowing difficult to believe.

Your Rights to Back Pay

You're entitled to back pay for the period you were underpaid. A Fair Work Inspector looks at the evidence and finds that the business has broken workplace laws and underpaid Carlos. The Fair Work Inspector issues a compliance notice to Carlos' boss that requires the business to fix the underpayments within 28 days or risk facing legal action... the business back pays Carlos all the money he is owed and starts paying him the correct minimum hourly rates, penalty rates and allowances.

The Proposed "Solution" is Problematic

Your employer's offer to convert you to part-time at $26/hour (only $1 above minimum wage) while avoiding casual loading is still potentially unlawful. Casuals don't get most types of paid leave, notice of termination or redundancy pay, even if they work regularly for a long time. Since you work only one day a week, you wouldn't accumulate meaningful benefits anyway.

How to Approach This

I'd recommend being direct but professional: "I appreciate you wanting to resolve this, but I prefer to remain casual as that matches my actual working arrangement. I need the casual loading that I'm legally entitled to. I also need to discuss the back pay I'm owed for the period I was underpaid."

Your Legal Options

Given the severity of this situation (systematic underpayment over an extended period), you have strong grounds for:

• Fair Work Ombudsman Complaint - Report the underpayment and seek back pay recovery - High likelihood of success given clear wage theft
• Protected disclosure - You cannot face adverse action for raising workplace law violations

Your Legal Position

You're a casual employee who has been systematically underpaid through misclassification. Your employer owes you the difference between what you were paid and what you should have received as a casual employee, plus any applicable penalty rates. The employer's financial constraints don't excuse wage theft, and their apparent prior knowledge of the issue strengthens your position.

You have every right to remain casual and receive proper casual rates. Don't let personal relationships prevent you from claiming what you're legally owed - your employer created this situation by not following workplace laws.

Okay, I've gathered some crucial information about your rights as a casual employee and how to approach this situation with your employer.

As a casual employee, you're entitled to certain protections and benefits under Australian law, even if you work irregular hours. It's essential to understand these rights so you can confidently advocate for yourself.

Here's a breakdown of how you can approach the conversation with your boss:

1. Acknowledge the Relationship: Start by acknowledging your long-standing relationship and your enjoyment of the job. This helps set a collaborative tone.
2. Express Your Concerns: Clearly state that you were surprised to learn about the underpayment and the proposed contract change. Explain that you value the flexibility of casual work and rely on the casual loading to make the job financially viable, especially as a student.
3. State Your Preference: Be direct about your preference to remain a casual employee with the correct pay rate and entitlements.
4. Inquire About Back Pay: Ask about a plan to rectify the underpayment, including back pay for the entire period you've been underpaid.
5. Be Prepared to Escalate: If your employer is unwilling to cooperate, calmly state that you will need to seek advice from the Fair Work Ombudsman to understand your options.

Remember, you have the right to a fair wage and proper entitlements. It's okay to stand up for yourself in a respectful but firm manner.