GLOBAL PAYROLL MAGAZINE
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Some industries such as the security, community services, building and construction, coal mining, and contract cleaning industries, receive Portable Long Service Leave. Again, dependant on the applicable state employees work in. Portable LSL is managed by specific regulators that administer the leave entitlement outside of the employing company. Directors, full-time, part-time, seasonal, and fixed-term employees are eligible for LSL, and in some states and territories long serving casuals are also eligible. LSL is not provided to contractors or sub-contractors of the company, as they are not defined as direct employees.
employee may be eligible for a pro- rata payment on termination after a minimum period of five years continuous service. In addition, it is worth noting that the definition of continuous service may or may not include periods of unpaid leave depending on the reasons for unpaid leave.
Did you happen to count the number of variables in those statements?
To help provide you with some guidance on this topic, the table provided below is a brief overview of entitlements across Australian states and territories. Please be aware this is not to be used as a finite table of entitlements but is offered as an illustration of the complexities of this leave and to highlight the importance of reviewing your payroll systems configurations. Seek professional advice for all your payroll compliances.
So, what are employees entitled to? Here is where the ‘fun’ begins!
As we know in payroll, parameters and strict definitions are how we build payroll systems and maintain compliance, however, with LSL these vary in so many ways. Depending on the relevant State/ Territory law or industrial instrument (such as an award or agreement), an employee may be entitled to long service leave after a period of continuous service ranging from seven to fifteen years with the same or a related employer. Untaken long service leave is usually paid on termination, although this can depend on the circumstances of termination. Depending on the relevant law or instrument, an
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