Long service leave
From Wikipedia, the free encyclopedia
Long Service Leave is an additional employee vacation payable after long periods of service with an employer
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[edit] Rates of Accrual for Long Service Leave
In Australia, unlike many other countries, employees are generally entitled to additional leave, known as Long Service Leave, over and above their annual leave if they stay with a particular firm for a minimum number of periods. A common entitlement in Australia is that employees who remain with a particular employer for 10 years will receive an entitlement of 8 and two-thirds weeks' (2 months) paid leave and more on a pro-rata basis the longer they stay with that employer. This amount was originally 13 weeks (3 months) after 15 years in most states until recent years. In Victoria, an employee is entitled to pro-rata long service leave after seven years.
[edit] Portability
Within a limited number of industries, such as the construction industry, the coal mining industry or within the public sector it is possible to transfer long-service leave entitlements from one employer to another. This is mostly done through specific schemes employers in those industries pay into, which are government run, which administer the funds for employees.
[edit] History
Long Service Leave is a benefit unique to Australia & New Zealand (and possibly some public servants in India) and relates to that colonial heritage. Long Service Leave developed from the concept of furlough. Furlough is a Dutch word (meaning from leave) and its usage originates in leave granted from military service. [1]
In the 19th century, furlough as a benefit as it is now known, was a privilege granted by legislation to the Colonial and Indian Services. In Australia, the benefits were first granted to Victorian and South Australian Civil Servants. The nature of the leave allowed civil servants to sail “home” to England, safe in the knowledge that they were able to return to their positions upon their return to Australia.
The concept spread beyond the public service over the period 1950 to 1975, mainly as a result of pressure from employees seeking comparability with the public service.
Nowadays, long service leave is ingrained in Australian culture and is specified by state based and some federal legislation. Interestingly, it is not often taken when it falls due.
[edit] Current Issues
The Institute of Actuaries of Australia estimated that the total value of Long Service Leave benefits in Australia was around $16.5bn in 2001.[2]
There has been a debate in Australia about the protection of employee entitlements (including long service leave) in the event of employer insolvency, with some high profile cases invovling employees losing benefits that had been accrued.
