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Victoria’s new long service leave law and what this means for your business

Uncategorized Nov 11, 2018

As of 1st of November, Victorian employee entitlements have changed.

The Long Service Leave Act 2018 (Vic) came into effect Thursday 1st November and will introduce significant changes to long service leave (LSL) arrangements in Victoria. The new legislation will impact the entitlements of all Victorian employees who were previously covered by the Long Service Leave Act 1992.

What are the changes?

  • Victorian employees can now request to take LSL after seven years of service on a pro rata basis – whereas they were previously only able to access this leave at the ten year mark.
  • Employers and employees are also able to negotiate taking LSL in advance (prior to the seven year point).
  • The changes apply to all full time, part time and any casual employees who accrue LSL.
  • Employers cannot refuse a worker’s LSL request unless they have reasonable business grounds to do so.
  • Continuous service covers employer authorised absences on paid and unpaid leave, including parental leave (up to 52 weeks) which counts toward the period of employment for accrual purposes. Parental leave taken beyond 52 weeks will not count as service but will not break continuity of employment
  • Employees can now take out LSL for as short as one day.

Action to be taken

Employers will need to ensure their payroll systems are updated to make sure LSL entitlements are correctly calculated and administered.

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