HRD Magazine has published the new Long Service Leave (LSL) Act 2018 changes for Victorian employees which are effective from today. This will impact national companies with employees based in Victoria, and that means an update of polices to reflect those changes.
Previously, employees could access their LSL entitlements after 10 years continuous service but this now changes to just 7 years requirement. Also this now includes casual, part-time and contract workers if that met the continuous service qualification period. This will also include employer approved leave of absence such as maternity/paternity leave as it doesn't break their continuity of employment.
Like any legislation, if an organisation is not compliant to these new rules they will face severe penalties, so a review of policies and procedures should be under review now and the changes implemented immediately.
Other important considerations include:
Employees are allowed to take single day periods of long service leave, however no less than a full day can be requested at a time
An employer and an employee may agree to taking long service leave in advance prior to seven years of continuous employment
Employers cannot refuse an employee’s request to take long service leave unless it is on reasonable business grounds
Long service leave is calculated on the employee’s normal weekly hours at their “ordinary time rate of pay” on the day long service leave starts
It is an offence under the Act to make a payment in lieu of long service leave, except where the payment is made on termination (as above) or in accordance with the relevant fair work instrument
Employers must keep records relating to long service leave for at least seven years after the employment ceases