Mr Cottrill said the Federal Court ruling that a casual worker with stable, regular and predicable hours was entitled to leave payments, could set a significant precedent and open businesses up to back pay claims or class actions.

The move was welcomed by unions with the Australian Council of Trade Union's secretary Sally McManus saying the landmark ruling protected workers who were labelled of casuals "purely to strip them of job security, rights and pay".

"It is also a win for all workers who are suffering because of systemic casualisation," Ms McManus said.

"We need to stop the practise of some employers labelling jobs 'casual' when they are in fact permanent. This has stripped workers of rights and security."

IN OTHER NEWS:

In February the Australian Bureau of Statistics found almost a quarter - 2.6 billion - Australians were employed as casuals.

But, Mr Cottrill said the decision allowed casuals to 'double dip' by claiming the 25 per cent casual loading as well as annual and sick leave.

He said the decision had the potential to hamstring COVID-19 recovery efforts if employers decided not to reemploy casual workers.

"The decision will add further strain to business owners already under incredible stress," he said.

"We hope the federal government moves quickly to ensure it doesn't become a financial and employment nightmare.

"It has the potential to cost employers in our region millions and might stop employers re-engaging their casuals after the crisis."

Mr Cottrill said the region had lost about eight per cent of jobs between mid-March and mid-April and couldn't afford more losses.

"It's frightening for business owners," he said.

"It's such terrible, terrible timing."