We often receive questions from not-for-profit organisations that are confused about their long service leave obligations, particularly when their workforce is covered by one of the various state or territory portable long service leave schemes or when their employees work across multiple states and territories.
This article provides a brief overview of the portable long service leave schemes relevant to the community services sector in Australia.
What is portable long service leave?
Portable long service leave is an entitlement that allows employees in specific industries to accrue long service leave based on their service across the entire industry, rather than just with a single employer.
Portable long service leave is more common in industries with high worker mobility, such as building and construction, coal mining, contract cleaning, and community services. These schemes ensure that employees in these sectors can still accrue long service leave even if they work for multiple employers within the same industry over a period.
Which jurisdictions are covered?
Currently, New South Wales, Victoria, Queensland and the ACT have portable long service leave schemes operating for eligible employees in the community services sector.
While the schemes differ slightly in terms of the types of work covered and the benefits offered, they all share a core requirement: employers must pay a levy (ranging from 1.35% to 1.85%) of each eligible employee's ordinary wages to the relevant state or territory authority. Once an employee has reached the minimum service period, they can apply directly to that authority for payment of their long service leave benefits.
A similar scheme is also expected to start in South Australia later this year.
What should not-for-profit organisations do?
If your not-for-profit organisation operates in the community services industry, check whether a relevant portable long service leave scheme exists in your state or territory.
It is essential to understand your obligations regarding:
- registration with the scheme authority
- reporting on eligible employee wages, and
- paying levies in relation to your eligible employees
For more information about the portable long service leave schemes in the community services industry, see our fact sheet.
