If you are an employer in Victoria, you will need to understand the Long Service Leave (“LSL”) changes that come into effect on 1 November 2018 as a result of the new Long Service Leave Act (2018) (the LSL Act).

The changes are designed to give more flexibility to LSL and to make it more accessible and fairer. The main points to note are as follows:

• Employees will be able to take LSL following seven years of service rather than 10 years.
• Up to 12 months of unpaid parental leave will count as service and unpaid parental leave of greater than 12 months will not break continuity of service.
• Changes to the calculation of ordinary hours and ordinary pay where employees’ hours or rates of pay have changed. We would be pleased to discuss them with you if required.
• Employees will be able to request to take long service leave in blocks of a single day.

The changes to the LSL Act enable an employee to request LSL information from their employer. Employers will need to keep accurate records of employee entitlements and these can be inspected by a State Government official at any time.

Previously, breaches of the LSL Act attracted civil penalties but in future, criminal penalties may be applied meaning that employers may receive a criminal record.