Changes to Portable Long Service Leave Entitlements in Victoria

On 5 September 2018 the Long Service Benefits Portability Act 2018 (‘the Act’) passed the Victorian Parliament. Under the Act, workers in the community services sector, security industry and contract cleaning industries in Victoria will now be able to access portable long service leave benefits.

Changes:

  • Allows workers in community services sector, security industry and contract cleaning services as defined to be entitled to long service leave after 7 years irrespective of the number of employers they have worked for over that time.
  • Employers in a covered industry will have a long service benefits levy imposed on the employee’s ordinary pay. This levy will not exceed more than 3% of the worker’s ordinary pay.
  • A Portable Long Service Leave Benefits Authority will be established to administer the scheme.
  • Service will begin on the day the Schedule comes into operation or on the day when the industry becomes a covered industry. However a worker may be credited with service prior the relevant day of operation by application to the registrar.
  • Employers must keep a written record of required information for each worker and provide a quarterly return to the Authority.

When the changes will be effective:

The Act will come into operation on or before 1 April 2019, with the scheme regulating portable long service leave to commence by mid-2019.

Please call the Workplace Advice Unit on 13 29 59 if you wish to discuss this circular or require further information.