Q:I have a query around a permanent employee changing to a casual contract and their sick leave entitlement.

Because they went straight from being permanent to casual and there was no break in service, I assume that counts as continuous employment, so then what happens to the sick leave?

Of course, annual leave is being paid out along with any other entitlements, but with the sick leave, do they have to wait another 6 months and see if they meet the criteria to have sick leave as a casual?

A: If you are doing a termination pay to pay out minimum entitlement, then issuing a new employment agreement for the employee (now as a casual).  All leave is reset as the employee is a new employee as such with a new start date as a permanent employee.

You cannot pay out leave and change the employee to a casual and then give them SL and all it continuous employment.