FocusOn - Long service leave

All Victorian employees are entitled to the minimum Long Service Leave provisions of the Long Service Leave Act. A minimum of 8.6 weeks Long Service Leave (LSL) applies after 10 years of continuous service. Employees receive their ordinary pay whilst on leave.

The Victorian Long Service Leave provisions apply to all Victorian employees who are not entitled to better provisions contained in a Federal Award, enterprise or individual agreement.

Long Service Leave entitlement

Leave accrues at the rate of 0.86 weeks for each year of service. Employees will be entitled to take of 8.6 weeks long service leave upon completion of 10 years of continuous employment with the same employer.

However, only 2/3 of the employee's continuous employment completed prior to 1 January 2006 will count as continuous employment and will be reflected in long service leave entitlement.

Continuity of employment

Employment will be regarded as continuous if:

	there is no more than an absence of 3 months between each instance of employment; or
	there is an absence of more than 3 months but the length of the absence is due to the terms of the engagement of the employee by the employer or due to the seasonal nature of the employee's emploment.

Continuity of employment will not be affected by:

	absences approved by the employer, including carer's leave; and
	any period of adoption, maternity or paternity leave not exceeding 12 months (or other period as agreed).

Termination of employment

If an employee has completed at least 7 years of continuous employment with the same employer, pro-rata LSL payments are available to them upon termination of their employment. These entitlements will now not be forfeited even in the event of dismissal for serious misconduct.

For employers

Employers should review their LSL obligations in order to ensure they comply with the legislation.

Visit the Victorian Industrial Relations website for further details at: www.business.vic.gov.au

Published : 27 July 2009