The Full Federal Court decision on Thursday is the third case in a series begun in 2016 over a fly-in-fly-out truck driver, Paul Skene, who worked at Rio Tinto’s Clermont mine from 2010.

Mr Skene was employed by WorkPac, one of a number of contract labour suppliers in the coal industry. Although Mr Skene was regarded by his employer as a casual, the latest court case has upheld the view that the regular and continuous nature of his work, on a fixed roster, meant he could not be classed as a casual under the Fair Work Act.

The case has been lauded by the ACTU as a “major blow” to “sham” arrangements. Employer groups, however, have slammed the decision and called on the federal government to intervene by strengthening the legal definition of a casual employee. The Australian Industry Group says the decision may end up in the High Court of Australia.

The national president of the mineworkers union, Tony Maher, and northern district president Peter Jordan said the use of casual labour hire workers was out of control in the Hunter and Queensland coal industries.

“Labour hire employees are now a significant proportion of the workforce at most coal mines, with the vast majority employed casually,” Mr Maher said.

“Many are casual in name only, working side by side with permanent employees on the same rosters over extended periods, but with no job security.

“This decision challenges a flawed business model based on driving down costs by casualising large portions of the workforce. It means the end of the so-called ‘permanent casual’, which was always a contradiction in terms and a rort.”

Mr Jordan said the decision potentially opened the way for thousands of claims in the coal industry for paid annual leave and other entitlements.

Mr Maher said the labour hire industry would “cry foul over this decision – the answer for them is to employ people on proper arrangements that reflect the real nature of their work”.

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