Are you abreast of the changes to long service leave in Victoria for employers in community services, contract cleaning and security industries?
Long Service Leave (LSL) rules have changed for Victorian workers in the community services, contract cleaning and security industries. Employers of these workers were required to register with the Portable Long Service Authority before 30 September 2019, and are now liable to pay a quarterly levy to fund the scheme.
The Act brings in a number of changes that present complex challenges for employers. Even employers who do not generally operate in the community services, contract cleaning or security industries but who employ some staff who predominantly carry out community services, contract cleaning or security work, must comply.
What has changed?
The Long Service Benefits Portability Act 2018 (Vic) (Act) entitles Victorian workers in the community services, contract cleaning and security industries to accrue portable LSL based on their length of service within an industry, rather than their length of service with one employer.
Employers must pay the levy
To fund the State-wide portable LSL scheme, registered employers must pay a quarterly long service benefits levy to the Authority who is responsible for administering the LSL when a worker applies to use it.
The levy is calculated as a percentage of the ordinary pay of each worker, and is currently:
- Community services: 1.65%;
- Contract cleaning: 1.80%;
- Security: 1.80%.
Unlike the current scheme, employers will not receive a refund of levy payments if a worker leaves their employment.
Employers must lodge quarterly returns
Within one month of the end of each quarter, employers must lodge a return with the Authority that contains the following information for each worker:
- name;
- total ordinary pay paid or payable for work performed in that quarter;
- number of days (or part days) during the quarter to which the pay relates;
- any long service benefits given to the worker under a Fair Work instrument during the quarter, including:
- long service leave granted to, or taken by, the worker;
- payments for, or in lieu of, long service leave made to the worker;
- any other long service benefits paid or given to the worker;
- the time at which the benefits were given;
- the service period to which the benefits relate; and
- the name of any other fair work instrument that provides for a long service leave entitlement that applies to a worker or workers;
- for each worker who ceased to be employed by the employer during the quarter – the date the worker ceased employment.
Employers must keep records
Registered employers must keep a record of the following information for each worker:
- name
- date of birth;
- nature of the work performed by the worker;
- the worker's ordinary pay for each quarter;
- the number of days or part days worked by the worker in each quarter;
- the date when the worker began service with the employer;
- long service benefits given to the worker under this Act, another Act, a corresponding law or a fair work instrument, including LSL granted to, or taken by, the worker; payments made for, or in lieu of, LSL; and any other long service benefits paid or given to the worker; and
- if the worker stops service with the employer—the date the worker stops service.
Is it compulsory?
Compliance with the Act is compulsory for businesses whose workers work in community services, contract cleaning or security. Employers cannot contract out of the portable LSL entitlement, nor the obligations to register with the Authority, pay the levy, lodge returns and keep records.
However, there are some exemptions to the Act for workers who:
- are covered by a federal award or workplace agreement where that award or agreement contains its own LSL provisions, including the Aged Care Award 2010;
- are provided with LSL entitlements under another Act or regulation, such as the scheme for workers in building and construction.
Should you require assistance in understanding and complying with these changes, please contact us.