Long Service Leave: Changes You Need To Know

Significant changes to long service leave (LSL) entitlements are due to come into effect by 1 November 2018.  The new Long Service Leave Act has been passed by the Victorian Parliament, which now means that any period of paid parental leave and up to 12 months of unpaid parental leave will count as service.

Moving forward, no amount of parental leave will break continuity of service.   Previous long service leave laws treated parental leave less favorably than all other forms of leave, for example, if an employee took more than 12 months of unpaid parental leave, they lost continuity of service and any accrued long service leave entitlements.  This disproportionately affected women who often take on care responsibilities. It also penalized parents for spending more time at home when their children were born.

The new laws will also allow workers to apply for long service leave after seven years’ service – as soon as long service leave entitlements begin accruing – rather than after 10 years.

In announcing the Act, the Minister for Industrial Relations, Natalie Hutchins, stated:

“The new LSL laws are a huge win for women, parents and carers across Victoria. No one should be penalized for spending more time at home when their kids are born or, for changing their working hours to look after a loved one.”

The Long Service Leave Act 2018 (Vic) (Act) which received Royal Assent on 15 May 2018 and will replace the Long Service Leave Act 1992 (Vic) (1992 Act).  This will impact the entitlements of all employees in Victoria, unless they are specifically excluded from the operation of the Act.

For more information, download the Victorian Government Long Service Leave Bill or Act below.


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Mark Semmens

Mark is a Chartered Accountant with a wealth of experience in accounting and taxation. Mark is a Member of Chartered Accountants Australia and New Zealand, the Tax Practitioners Board and the National Tax and Accountants Association.

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Daniela Semmens

Daniela Semmens is a Co-Director of Semmens & Co. and joined the company as General Manager in 2017. Daniela is an Affiliate Member of Chartered Accountants Australia and New Zealand and also a Member of the Australian Institute of Project Management.

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