Changes to Victoria Long Service Leave-effective November 1st
There will be substantial changes to long service leave in Victoria due to the New Long Service Act 2018 coming into effect on 1st of November and it’s important for Victoria businesses to be ready (and businesses based outside Victoria, but that have employees working within Victoria).
What are the changes that will affect my business?
- Full-time, part-time, casual and seasonal employees will be eligible for long service leave
- Employees can request long service leave after 7 years of continuous service (as opposed to 10 years)
- Continuous service also includes authorised absences on paid and unpaid leave, including parental leave (up to 52 weeks). Parental leave in excess of 52 weeks is not including as “service” but does not constitute a break in service
- Employees can apply to take a minimum of 1 day of long service leave at a time (but no less than this)
- An employer and an employee may agree to taking long service leave in advance prior to seven years of continuous employment
What do I need to do to ensure my business is legally compliant with these changes?
- Ensure payroll is correctly calculating long service entitlements (employee’s normal weekly hours at their “ordinary time rate of pay” on the day long service leave starts)
- Your policies are updated to reflect these changes
- When a long service leave request is received, it is comprehensively considered in line with these changes. If the request cannot be accommodated, the employee is given a thorough explanation within a reasonable business case (how this will have a negative impact on the business)
- You cannot offer a payment in lieu of long service leave, except where the payment is made on termination or in accordance with the relevant fair work instrument (this is a breach of the Act)
To talk about these changes in your business and how you should be planning for the new Long Service Act, please book a Discovery Session with one of our Employee Experts.