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.

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 ten years will receive an entitlement of eight and two-thirds weeks' (two calendar months) paid leave, more on a pro rata basis, the longer they stay with that employer. This amount was originally thirteen weeks (three months) after fifteen years in most states until recent years.

In the Australian Capital Territory, an employee is entitled to pro-rata long service leave after seven years.[1]

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 involving employees losing benefits that had been accrued.[citation needed]

Within a limited number of industries, such as the construction industry, the coal-mining industry, the contract-cleaning industry or within the public sector, it is possible to transfer long-service leave entitlements from one employer to another, as long as the employee remains in the same state. Known as portable long service leave this is done mostly through specific legislated schemes which employers in those industries pay into, and which administer the funds for employees.[3]

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. There is a similar system of sabbatical leaves also in Finland[4]. Long service leave developed from the concept of furlough, which stems from the Dutch word verlof (meaning leave) and its usage originates in leave granted from military service.[citation needed]

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.[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.

Nowadays, long service leave is ingrained in Australian culture and is specified by state based and some federal legislation. Interestingly, it is often not taken when it falls due, leading to calls to reduce long-service entitlement in the public sector.[5]

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References[edit]

  1. ^ Parliament Australian Capital Territory. "Long Service Leave Act 1976" (PDF). ACT Parliamentary Counsel. p. 43. Retrieved 24 October 2012. 
  2. ^ https://docs.google.com/file/d/0B6Nz528QDJxJNDE1NWM0NTYtODI2ZC00N2Y4LTlhNjktYmUzZDFhYzk5YzY4/edit
  3. ^ "Home – Long Service Corporation". Long Service Corporation. Retrieved 24 October 2012. 
  4. ^ "European Labour Law Network". Retrieved 15 September 2014. 
  5. ^ Emerson, Daniel (4 October 2012). "Workers told to take holidays". The West Australian. Yahoo!7 News. Retrieved 24 October 2012. 

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