The Victorian Government has made some significant changes to the LSL (Long Service Leave) provisions that will become effective from 1 November 2018. Payroll functions should ensure that all employee records and accruals are updated to reflect the revised provisions of the Act.
Here are some of the key changes:
CURRENT
NEW
Taking Long Service Leave
Employees can take long service leave after 10 years of continuous service (on termination, LSL is paid out after 7 years)
Employees may request to take first 13 weeks of LSL in a single period or over a max of 3 periods
Employees can take long service leave after 7 years of continuous service
Employees may request to take LSL in any blocks they wish, including 1 day at a time.
Continuous Service and Parental Leave
LSL does not accrue during periods of parental leave, both paid and unpaid
Parental leave of longer than 52 weeks breaks continuity of employment
Any period of paid leave will count as service and will not break continuity of service
Any period of unpaid leave up to 52 weeks will count as service
Unpaid parental leave greater than 52 weeks will not break continuity of employment
For casual or seasonal employees, a 12 week or more gap in employment will break continuous service. However, up to 104 weeks of paid or unpaid parental leave is included in a casual or seasonal employee’s period of continuous service
Calculation of LSL – ORDINARY HOURS
If ordinary hours vary or have changed over the last 12 months, a business will calculate the average hours over:
Last 12 months; and
Last 5 years
And use whichever is higher
If ordinary hours vary or have changed over the last 12 months, a business will calculate average hours over:
Last 12 months;
Last 5 years;and
Entire period of employment
And use whichever is higher.
Calculation of LSL – ORDINARY PAY
If ordinary pay varies or has changed over the last 12 months, a business will calculate the average pay over:
Last 12 months; and
Last 5 years
And use whichever is higher
If ordinary pay varies or has changed over the last 12 months, a business will calculate average pay over:
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