Portable Long Service Leave is coming. It’s time to prepare
Thousands of workers in the community services sector are set to benefit from the introduction of Portable Long Services Leave from October 1, as they start accruing long service leave that will stay with them, even if they change employers.
The SA Portable Long Service Leave – Community Services (SAPLSL-CS) scheme was enshrined in state legislation late last year and employers within the sector will need to begin registering their business in two weeks’ time.
The scheme has been created with a clear purpose: to acknowledge the essential, ongoing contribution of workers in a sector that supports some of the most vulnerable people in the community, including children, people with disability and those experiencing hardship or crisis.
It recognises that the community services sector is a highly mobile workforce where contracts often dictate short-term roles, and funding cycles may change every few years. While workers may move between organisations, they continue to deliver the same critical work.
SAPLSL-CS CEO Anthony Mackay said the introduction of the scheme to the state, following the construction industry’s successful introduction in 1977, would be a significant shift for the thousands of community services workers who, for the first time, will have their service recognised at an industry level, better reflecting how the sector operates for those in frontline and support roles.
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“Our goal is to provide fair, simple access to long service leave – something many in this sector would not otherwise receive,” Mackay said. “It’s about valuing the work, not just the workplace.
“For workers, it’s long-awaited recognition that your service matters, regardless of who your employer is. For the sector more broadly, it’s a step toward retaining experience, building stability and encouraging people to stay in the work they’re skilled at and passionate about.”
From October 1, all employers within the sector will pay a 2.2 per cent levy for all eligible workers. If an employee is eligible for long service leave after October 1, they will then need to apply for leave via the scheme, rather than their employer. The employer will still have approval responsibilities but the scheme will now manage the leave requests and leave payments.
If a worker has accrued long service leave with the same employer prior to the scheme beginning on October 1, the employer will still be liable to cover that portion of leave accrued before it comes into effect.
Portable Long Service Leave reduces long-term liabilities for employers. Over the longer-term, the scheme will shift liability from individual employers to an industry-wide fund, which will administer long service leave payments from the SAPLSL-CS scheme’s fund.
The scheme has been designed to improve sector-wide retention. With turnover rates in the community services sector high and workforce retention a known issue, the scheme will offer an incentive for workers to stay, because they will be able to keep their entitlements even if they change employers.
“Similar schemes in construction and cleaning, along with community services schemes already in operation across Australia, report that portability encourages long-term sector participation,” Mackay said.
“While helping to attract and retain skilled staff, the scheme aims to reduce costs associated with turnover and training, helping employers in the long run by introducing greater certainty for their workers and removing barriers for workers in highly mobile industries such as in roles where they provide care.”
From October 1, workers within the sector will be able to accrue long service leave across different employers. This means they can stay in the work they love, with greater long-term financial and leave benefits.
Having access to the scheme increases security and stability for workers, knowing they will be able to access time off once accrued, and recognising their right to take a well-earned break.
