LONG SERVICE LEAVE ADVICE

An employee gets long service leave after a long period of working for the same employer. Most employees' entitlement to long service leave comes from long service leave laws in each state or territory. These laws set out:

For the most up to date and accurate information about Long Service Leave obligations of your business, please look at your local state / territory government websites and Long Service Leave (LSL) is governed by state law.

Here are LSL links for each local state and territory as at April 2021. 

• Victoria.
• New South Wales.
• Australian Capital Territory.
• Queensland.
• South Australia.
• Western Australia.
• Tasmania.
• Northern Territory.

Since you are dealing with government regulation, it is important to understand all the regulations. It is possible that a quick scan says you are liable whereas a more careful read could indicate that you have no liability.

While the temptation will be to ask your accountant or lawyer to do the work for you. we say you are better off reading for yourself as all the information you need is online.

Our advice on how to make sure you are prepared for handling Long Service Leave? 

1. In your accounting software accrue LSL entitlements as a liability to the business. This needs to show on the balance sheet.
2. In a non-trading, interest-bearing, bank account, set aside the funds for LSL regularly. This avoids a cash flow shock when the time comes.
3. Have a written LSL policy for the business, that makes it clear your expectations. For example, once an employee can take LSL, must they? or, can they continue to accrue. As their rate of pay goes up, so can the total cost of LSL - depending on what you have in place.
4. Follow the law. The risks of not doing this are too great. For example, follow strictly the obligations on LSL payout.

newsXpress will help in any way it can. However, coming to us late with a situation that has already become formal against your business could be challenging.