In Victoria, the concept of Portable Long Service Leave (PLSL) is a progressive approach designed to adapt to the realities of modern employment.

Traditionally long service leave entitlements typically bind workers to a single employer. However, with changes in the workforce, including more fluid career paths and the rise of project-based and temporary work, PLSL was introduced to ensure that workers in specific industries can still accrue long service leave benefits, even if they change employers within the same sector.

What is Portable Long Service Leave?

Portable Long Service Leave allows employees in certain industries to accumulate long service leave entitlements regardless of whether they remain with the same employer or whether they have several employers.

Unlike traditional long service leave schemes, which only apply if a worker stays with one employer for a continuous period (typically seven to ten years), PLSL permits employees to carry their leave entitlements from job to job within the same industry.

The primary goal of PLSL is to protect employees who work in industries where employment is often project-based or short-term, meaning that staying with one employer long enough to qualify for long service leave is rare.

Under the PLSL scheme, eligible workers accumulate long service leave based on their years of service in the industry, rather than their tenure with a single employer.

Industries Covered by PLSL

As of now, the PLSL scheme in Victoria applies to the following sectors:

1. Community Services

Workers providing social and community services, including disability services, crisis assistance, and home care.

2. Contract Cleaning

Employees engaged in the cleaning of commercial, industrial, and residential buildings.

3. Security

Workers providing security services, including guarding and patrol work.

Each of these industries has specific characteristics that make PLSL necessary. For example, community service workers may be employed under short-term government contracts, and security workers often work for different companies at different locations over the years.

The PLSL scheme ensures that even in these fluctuating environments, employees are not disadvantaged when it comes to accruing long service leave.

Employer Responsibilities Under the PLSL Scheme

As an employer in one of the covered industries, you have several obligations under the Portable Long Service Leave Act 2018. These responsibilities include:

1. Registration

You must register your business with the Portable Long Service Authority (PLSA) if you employ workers in one of the covered industries. This is a legal requirement and must be done as soon as your business becomes eligible.

2. Worker Registration

You are also required to register your eligible workers with the PLSA. This ensures that your employees’ entitlements are tracked accurately over time, regardless of their employment status with your business.

3. Quarterly Returns and Levy Payments

Employers must submit quarterly returns detailing their workers' service and pay a levy based on their total wages. The levy contributes to the funding of the workers' long service leave entitlements under the PLSL scheme.

4. Record Keeping

You are required to keep accurate records of your employees’ service and report this information regularly to the PLSA. Failure to maintain accurate records or submit returns can result in penalties.

5. Informing Employees

It is your responsibility to inform your workers about the PLSL scheme and how it applies to them. Transparency in this area can help maintain good employer-employee relations and avoid misunderstandings.

Benefits of PLSL for Employees

From an employee’s perspective, the PLSL scheme offers several benefits. These include:

1. Job Flexibility

Workers no longer have to feel bound to a single employer to accrue long service leave. This flexibility encourages career growth and mobility within their industry.

2. Financial Security

Employees in industries covered by PLSL can still accumulate long service leave entitlements even if their employment situation is unstable or subject to frequent changes. This can be particularly reassuring in sectors where project-based work is common.

3. Better Work-Life Balance

Long service leave allows employees to take extended breaks after years of service, which can improve their work-life balance and overall well-being.

Portable Long Service Leave in Victoria represents a significant shift in how long service leave is managed, particularly in industries where employment is often transient.

As an employer, staying informed about your obligations under the PLSL scheme is vital to ensure compliance with the law and to support your employees in securing the benefits they are entitled to.

By registering with the Portable Long Service Authority, keeping accurate records, and contributing to the scheme through regular levy payments, you play a crucial role in helping your employees accrue the long service leave they deserve, regardless of their changing employment circumstances.

Embracing PLSL not only ensures legal compliance but also fosters a more flexible and supportive working environment for your team.

Contact us for more information on how this applies to your specific circumstances.