Long Service Leave – The changes you need to know about!

Long Service Leave – The changes you need to know about!

All Victorian employers need to be aware of the significant changes to long service leave (LSL) entitlements that commence from 1 November 2018.

An employee will be entitled to take LSL after completing a minimum of 7 years’ ‘continuous employment’ with ‘one employer’.

LSL is calculated as the total number of weeks’ employment divided by 60 and multiplied by the ordinary weekly rate of pay at the time the leave is taken, or when the employee ceases employment.

Below is a summary of the new legislation which covers the major and minor changes. Of course if you have any further questions. So before you start dreaming about escaping to a bungalow on the beach in Tahiti or on a tour of French provincial wineries get up to speed with your rights as a worker.

Major Changes
Long Service Leave Act Victoria 1992 Long Service Leave Act 2018
Eligibility to take long service leave
· Entitled to take long service leave at 10 years of continuous service · Entitled to take long service leave at seven years of continuous service
Continuous service and parental leave
·  Unpaid parental leave is not counted as service for the purposes of long service leave

· Parental leave of longer than 12 months breaks continuity of service

· Any period of paid leave will count as service (and will not break continuity of service)

· Any period of unpaid leave up to 12 months will count as service

·  Any period of unpaid leave greater than

12 months will not count as service, unless agreed otherwise, but will not break service

· For casual employees, a 12 week or more gap in engagement will break continuous service. However, up to 104 weeks of paid and unpaid parental leave does not break continuous service

Calculation of ordinary pay
If ordinary time rate of pay is not fixed, the business performs two calculations:

1.  Average weekly earnings over 12 months

2.  Average weekly earnings over five years And use whichever is more beneficial to the employee

If ordinary time rate of pay is not fixed, the business must perform three calculations:

1.  Average weekly earnings over 52 weeks

2.  Average weekly earnings over 260 weeks

3.  Average weekly earnings over entire period of employment

And use whichever is more beneficial to the employee

Calculation of ordinary hours
If ordinary hours are not fixed, or have changed in the previous 12 months, then the business performs two calculations:

1.  Average weekly earnings over 12 months

2.  Average weekly earnings over five years And use whichever is more beneficial to the employee

If ordinary hours are not fixed, or have changed in the 104 weeks before the long service leave, the business must perform three calculations:

1.  Average weekly earnings over 52 weeks

2.  Average weekly earnings over 260 weeks

3.  Average weekly earnings over entire period of employment

And use whichever is more beneficial to the employee

Taking periods of long service leave
·  1 single period or 2-3 separate periods by agreement · Employee may request for leave to be in blocks of a single day
Minor Changes
Long Service Leave Act Victoria 1992 Long Service Leave Act 2018
“Assets” in a transfer of business
· Where business is performed in relation to certain assets: If such assets are transferred to a new employer and the employee is employed with the new entity within three months, then employment is continuous.

· The employee must be performing duties relating to such assets.

· Assets are defined as land, plant and equipment)

· The definition of ‘assets’ will include both tangible and intangible assets (e.g. intellectual property).
Continuous service and termination of employment
· If an employee’s employment ends at the initiative of the employer and re-engaged within three months: Service is continuous · If an employee’s employment ends at the initiative of the employer or employee and re-engaged within three months: Service is continuous
New powers for authorised officers
1Authorised officers had the power to request certain
documentation be provided
1.  Authorised officers have the power to require documents or information to be produced by providing written notice

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