Changes to Victorian Long Service Leave – Effective 1 November 2018

Oct 1, 2018 | Accounting & Tax, Business

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:

CURRENTNEW
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:

 

  • Last 12 months;
  • Last 5 years;and
  • Entire period of employment

And use whichever is higher.

For additional information about the changes to LSL in Victoria, visit the Business Victoria Long Service Leave overview.

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