Changes to Long Service Leave in Victoria
Business Victoria has announced that as of November 1st this year the 1992 Long Service Leave act will be superseded. The Long Service Leave act 2018 changes include the following:
Who is affected?
- Greater flexibility for women, families and people transitioning to retirement.
- Access to long service leave after seven years, not ten.
- Allowing employees to take long service leave in smaller increments (i.e. for any period of one day or more)
- Most absences from work do not break continuous employment.
- Unpaid leave, including parental leave, counts towards long service leave.
- Increased penalties for employers who do not keep records or do not produce them when requested.
Most Victorian employees (excluding employed under some Commonwealth enterprise agreements and pre-reform awards, and certain other Victorian Laws).
The following types of employment are included:
What is the new entitlement?
- Full time
- Part time
- Fixed Term
After an employee completes a minimum of 7 years ‘continuous employment’ with ‘one employer’ they are entitled to an amount of long service leave on ordinary pay equal to 1/60th of the period of employment. This is approximately 6.1 weeks after 7 years, less any period taken during that period.
Is LSL paid on termination?
Yes, an employee who is eligible for LSL under the new act must be paid out their entitlement on the day employment ends.
How do I calculate payment?
Long service leave is paid at ‘ordinary pay’, however if hours changed, there were no fixed hours or no ordinary rate of pay, averaging is required.
You can use the Victorian LSL calculator to help with calculating the entitlement by clicking here.
Can an employer encourage their staff to take their LSL?
An employer can direct an employee to take leave via 12 weeks written notice.
Is there a full detail guide I can access if required?
Yes, from the 1st of November the 2018 Comprehensive Guide is available to download at business.vic.gov.au/longserviceleave you can also call 1800 287 287 to obtain a copy.