How long is long service leave?

HOW LONG IS LONG?

PORTABLE LSL

In a limited number of industries, such as construction and the public sector, it's possible to transfer long-service leave entitlements between employers as long as you remain in the same state.

This portable LSL is mostly done through legislated schemes that employers in those industries pay into, and which administer the funds for you.

Interestingly, it's not often taken when it falls due, and the Institute of Actuaries of Australia estimated the total value of long service leave benefits in Australia was around $16.5bn in 2001.

A SIGNIFICANT number of calls to HACSUassist are about long service leave and how it applies to a member's current situation, but there's no one answer that covers all circumstances.

There may not be a one size fits all set of rules, but here's a summary of LSL history, what it means to some workers, and a number of common questions.

A LITTLE HISTORY

Long service leave is a benefit unique to Australia and New Zealand, and some public servants in India, and relates to our colonial heritage.

It comes from the concept of furlough, or 'verlof' a Dutch word meaning leave of absence, and its usage originates in leave granted from military service, not necessarily with pay, that was implemented as a way to temporarily be laid off.

In the 19th century furlough became a privilege granted by legislation to the colonial and Indian Services, and in Australia it was first granted to Victorian and South Australian civil servants.

The nature of the leave allowed civil servants to sail ‘home’ to England, safe in the knowledge they could return to their positions when they got back to Australia.

From 1950 to 1975 the concept spread, mainly as a result of pressure from employees through their unions seeking fairness compared with the public service.

Half a century later we may be about to experience a repeat of history.

CAN I TAKE LONG SERVICE LEAVE?

The two main factors are the amount of time since your employment started and continuity of service - an uninterrupted span of time working for your employer.

Absences and interruptions such as annual leave, parental leave, sick leave, jury leave and others will not impact on your ‘continuous employment’ but only some of them will count towards the required time of ‘continuous employment’.

If you work less than full time hours there are a minimum number of hours to be worked to maintain continuity.

Depending on your employment sector, private or public, years of service is a component in calculating your eligibility.

For example it may take 15 years service in the private sector to achieve the same entitlement as 10 in the public sector.

WHAT LSL AM I ENTITLED TO?

This depends on which legislation applies to you - Private Sector - Long Service Leave Act 1976 or Public Service - Long Service Leave Act (State Employees) Act 1994 - but both Acts state you are entitled to access long service leave after completing 10 years of continuous employment.

DO CASUAL EMPLOYEES GET LSL?

Yes, if you meet the continuous employment provisions.

CAN I CASH-IN MY LSL?

may cash it in by receiving payment in lieu or taking a mix of cash and leave.

Public sector: No. The entitlement is to a period of leave, for which normal salary is payable.

IS LSL THE SAME AUSTRALIA-WIDE?

The National Employment Standards don't contain a consistent LSL standard, so each state and territory has its own legislation and in Tasmania these are Long Service Leave Act 1976 and Long Service Leave Act (State Employees) Act 1994.

IS LSL AN ENTITLEMENT ON TERMINATION OF EMPLOYMENT?

If you've completed at least 7 years ‘continuous employment’ you will be entitled to a pro rata LSL payment if employment is terminated by the employer for any reason other than serious and wilful misconduct.

For you to be denied pro rata LSL, termination must have occurred because of ‘serious and wilful misconduct’.

PRO RATA ALLOWANCES

If you complete 7 years continuous employment, you may be entitled to a prorata allowance, if you: - Cease employment because of ill health - Resign because of domestic of other pressing necessity - Retire, are made redundant or are dismissed for any reason other than serious and wilful misconduct - Die

Whether a particular case constitutes a “domestic or other pressing necessity” depends on the situation, here are just a few examples: - Moving to another location to be married - Relocating due to transfer of a spouse - Full-time care of a child or sick relative

Supporting documentation, such as a doctor’s certificate or letter from spouse’s employer, is required.

MORE QUESTIONS?

HACSUassist can give you further help with your enquiries on 1300 880 032 or assist@hacsu.org.au