Long service leave

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Long Service Leave is an additional employee vacation payable after long periods of service with an employer in Australia and New Zealand.

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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 employer for a certain length of time. A common entitlement in Australia is that employees who remain with a particular employer for 10 years will receive an entitlement of eight and two-thirds weeks' (two calendar months) paid leave and more on a pro-rata basis the longer they stay with that employer. This amount was originally 13 weeks (three 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

Main Article: Portable Long Service Leave

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 legislated schemes which employers in those industries pay into, and which administer the funds for employees.

[edit] History

Long Service Leave is a benefit unique to Australia and New Zealand (and possibly some public servants in India) and relates to their colonial heritage. Long Service Leave developed from the concept of furlough.[citation needed] 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 the 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.[citation needed] Due to the duration of travel by ship (six month trips were not uncommon [2]) to and from England, Long Service Leave would provide an immigrant civil service staff member with a single opportunity to revisit friends and family left behind in England, with the security of a held position in Australia. [citation needed]

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.[citation needed]

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.[3]

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 involving employees losing benefits that had been accrued.

[edit] See also

[edit] External links

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