New long service leave portability benefits for workers in community services, security and contract cleaning industries
The Victorian Parliament has passed new legislation providing portable long service leave benefits for workers in community services, security and contract cleaning industries. Under the Long Service Leave Benefits Portability Act 2018 (Act), workers in these industries are entitled to long service leave after working in their industry for seven years, regardless of the number of employers. This allows employees and contractors, who have worked for multiple employers, to have their service recognised for the purpose of this scheme.
The portable long service leave scheme will commence in mid-2019, with the aim of bringing fairness to all Victorian workers in the contract cleaning, security and community services industries, who rarely qualify for long service leave entitlements under traditional long service schemes.
The Act establishes the Portable Long Service Benefits Authority (Authority) with the power to administer long service leave benefits in specific industries, make long service leave payments and receive levies, among other regulatory functions.
The Act also places an obligation on employers and contractors by requiring lodgement of quarterly returns, payment of levies and keeping long service leave records. Importantly, the long service leave levy is imposed on the ordinary pay of each employee and contract worker in a covered industry.
The employer is under an obligation to pay the levy for each employee as determined by the Governing Board of the Authority. The Act provides that the levy determined by the Governing Board must not exceed 3 percent of the employee or contractor’s ordinary pay and may vary depending on the industry and different circumstances within each industry. Penalties apply to individuals and bodies corporate for failure to pay the required levy.
For advice or information about your long service leave obligations, please contact:
Jim Rutherford
Principal
T + 03 5226 8579
E: jrutherford@ha.legal
or
Sonia McCabe
Senior Associate
T 03 5226 8558
E: smccabe@ha.legal
or
Sophie Ware
Associate
T 03 5226 8577
E: sware@ha.legal