Vic long service leave: what's changed?

Q&A

Vic long service leave: what's changed?

What changes have been made to Victoria's Long Service Leave Act and when do they come into effect? Alison Williams explains.

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What changes have been made to Victoria's Long Service Leave Act and when do they come into effect?

This question was recently sent to our Ask an Expert service.
 
Q We have an employee who plans to take long service leave at the end of the year. We're aware there have been recent changes to legislation but are unsure how it affects us. Where can we find information on this?

A The Victorian Long Service Leave Act 2018 was passed on 15 May 2018. Unless proclaimed to commence earlier, it will come into operation on 1 October this year. 
 
The Act can be accessed here:
 
The main changes are:
  • employees can take accrued (pro rata) LSL after seven years
  • LSL accrual rate remains unchanged
  • all paid parental leave will count as service and unpaid parental leave up to 12 months will count as service
  • parental leave longer than 12 months will not break continuity of service
  • casuals and seasonal employees may have continuity of service recognised for LSL purposes in the following circumstances: if they take (paid/unpaid) parental leave; if the employer agrees in advance to the break between engagements; if the employee had a reasonable expectation of re-employment; or if the break is due to seasonal factors
  • an employee will be able to take LSL in periods as short as one day or more, unless an employer refuses on reasonable business grounds, with the onus of establishing what are reasonable business grounds on the employer
  • another way of calculating LSL for employees whose hours have changed has been added for employees who have worked for the employer for more than five years – the average hours over the entire period of service. The average which entitles the employee to the greater payment must be used
  • a broader definition is being used in relation to transfer of business which is likely to lead to more transferee employers being liable for LSL entitlements
  • an employee who resigns and is re-employed by the employer within 12 weeks will now have their continuity of service preserved, and
  • penalties for employers have been transferred to the criminal jurisdiction and the amounts increased.
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