The Long Service Benefits Portability Act 2018 has been passed by Parliament and will come into operation by 1 July 2019.
Under the new laws, workers in the contract cleaning, security and community services sectors will be able to access long service entitlements after seven years in the industry, irrespective of the number of employers they work for over that time.
Businesses in these industries will be required to register and provide a quarterly report to a new Portable Long Service Benefits Authority. The scheme will be funded by a levy to be paid by employers. The rate of the levy will be set by the Authority’s Governing Board once it is appointed.
Employees in the security and contract cleaning industries will be entitled to leave based on 1/60th of their accrued service, after seven years continuous service. Employees in the community services sector will receive a payment instead of leave.
As this is a portable scheme, workers will be able to move from employer-to-employer without losing their accrued entitlement, provided they stay within the industry.
This legislation is in response to a Parliamentary Committee that recommended a portable long service leave scheme, and follows the successful operation of portable long service leave in the construction industry for the last 30 years.
New South Wales, Queensland, and the Australian Capital Territory already have portability schemes in place for workers in selected industries.
If you are an employer or employee in this industry and have any questions about the laws call Katie Dempster, AFS Audit Manager on 03 5443 0344.