Long Service Leave Changes

1 November 2018 (important changes for small business owners!)

The Long Service Leave Act 2018 (Vic) has become law on 1 November 2018.

It introduces a number of changes to the way long service leave (LSL) in Victoria is calculated.

The key changes include:

  • LSL will accrue during all paid parental leave and during the first 52 weeks of unpaid parental leave.
  • Continuity of employment will no longer be broken where unpaid parental leave exceeds 52 weeks.
  • Employees will be able to take LSL after 7 years of employment (10 years previously).
  • Employees will be able to take LSL one day at a time
  • Where an employee’s hours of work change during their employment, LSL will be calculated at the highest average over the previous 12 months, five years or the entire period of employment

Now is the time to review employee records, documentation, processes, payroll systems and leave calculators to ensure you are ready to meet your employer obligations under the new legislation.

The takeaway

There are actions you need to take now to ensure that you are ready to administer the new LSL rules from 1 November 2018.

Examples include:

  • Review and update LSL processes and manual calculators to reflect the changes.
  • Update your payroll software to ensure LSL accruals and payments are calculated accurately.
  • Testing the accuracy and consistency of the updates.
  • Ensure to keep complete and correct employment records for the entire period of employment to support future LSL calculations.

Please contact our office if you need assistance with the transition. 

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