What is Long Service Leave in Victoria? (2020 Update)
Have you been at your job for a long time and are interested in taking some time off? Here's what you need to know about long service leave in Victoria.
In this series of posts we look at the concept of ‘long service leave’ (LSL) within each respective State and Territory. If you’re thinking about what entitlements you have to LSL and pro-rata, you’ve come to the right place. For an overview of LSL entitlements in general, click here.
What is long service leave?
When you work for your employer for a long period of time, it makes sense that you should be rewarded with additional leave entitlements. This is called long service leave. Long service leave is separate from annual leave. This is because it only accrues after a number of years and tends to be longer than annual leave entitlements. Long service leave incentivises employees to remain in their role long-term
You will receive your usual salary for long service leave. However, you cannot simply remunerated for long service leave if you choose not to take it. This means that you can only receive your leave entitlements by going ‘on leave’. An exception is if you have outstanding long service leave entitlements and you’re terminated. In this case, your employer would have to pay you out for it.
In 2018, the Victorian Government made significant changes to long service legislation. The primary focus of these reforms was to make the provisions more suitable for women, parents and carers.
As of November 1 2018, LSL entitlements in Victoria are governed by the Long Service Leave Act 2018 (Vic). The Act states that;
- At any time after completing 7 years of continuous employment with one employer, an employee is entitled to an amount of long service leave on ordinary pay equal to 1/60th of the employee’s total period of continuous employment less any period of long service leave taken during that period.
The following is a list of the key amendments made to the old 1992 version of the Act:
- You will now be able to apply for LSL after seven years of continuous employment (as opposed to the previous minimum of 10).
- Any period of paid parental leave and up to 12 months of unpaid parental leave will count as service.
- No period of parental leave will break continuity of employment
- You can now take LSL in as many periods as you wish, as long as each period is not less than 1 day.
- Casual and seasonal employees can take up to 104 weeks of paid/unpaid parental leave before continuity of employment will break.
Furthermore, if you want to calculate your LSL payment within Victoria, click here.
Dominic is the CEO of Lawpath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the 2015 Australian Legal Innovation Index.