The Victorian Government has launched a website for the new Portable Long Service Leave Authority containing important information for employers about the scheme.

Last year the Victorian Parliament passed the Long Service Benefits Portability Act 2018 to establish a scheme to provide portability of long service leave benefits for workers in the contract cleaning, security and community services sectors.

The scheme will commence on 1 July 2019 and businesses must register before 30 September 2019.

The scheme will enable eligible workers to accumulate paid long service leave entitlements for long service within a sector, irrespective of how many employers they have worked for.

It will be funded by levy payments made by employers that are pooled into a central fund that pays long service entitlements to workers. The levy rates have been set as follows:

• 1.65% for community services
• 1.80% for contract cleaning
• 1.80% for security

The Victorian Chamber has consistently opposed a new portable long service leave scheme on the basis that it will increase the cost of labour without delivering any corresponding increase in productivity. It will result in additional indirect administration costs and red tape for employers. These additional costs will discourage employment.

The government has also released exposure draft regulations relating to the coverage of the scheme with respect to the community services sector and the potential for ‘double-dipping’ of entitlements in the community sector. The government is seeking feedback on the draft regulations by 31 May 2019.

If you require further information please call the Victorian Chamber Workplace Relations Advice Line on (03) 8662 5222.