Introduction

The Victorian Chamber of Commerce and Industry welcomes the opportunity to provide a submission to the Victorian Government’s Victorian Portable Long Service Leave Design Study, being undertaken by ACIL Allen Consulting.

As Victoria’s leading business organisation, each year the Victorian Chamber informs and services more than 15,000 members, customers and clients across the state, encompassing all industry sectors and spanning small, medium and large-sized businesses.

The Victorian Chamber also has extensive experience in helping members to understand and comply with their current long service leave obligations. The Victorian Chamber Workplace Relations Helpline, which provides members with up-to-date and independent advice on a range of workplace relations issues, receives an average of 20 calls per week relating to long service leave. The Victorian Chamber maintains our objections to portable long service leave, made in our original submission to the Victorian Parliament’s 2015 Inquiry into the Portability of Long Service Leave Entitlements.

The Victorian Chamber does not support the introduction of any additional 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 also result in additional indirect administration costs and red tape for employers. These additional costs will discourage employment.

In the current economic climate, with unemployment exceeding 6 per cent, the imposition of additional employment costs on the cleaning and security sectors will further undermine the Victorian Government’s commitment to create jobs and strengthen business competitiveness.

Should the Government decide to proceed with such a scheme, our submission urges a focus on minimising scheme costs and the administrative burden on employers.

Our submission is based on consultations with members from the cleaning and security sectors.

Key recommendations

• Victoria needs less regulation, not more
• The scheme must focus on low costs
• The Government should meet all administrative costs of operating the scheme
• A level playing field is required, to not further widen competitive disadvantage faced by some businesses
• Benefits no greater than under current scheme

Download the Victorian Portable Long Service Leave Design Study Submission, March 2017 from the Victorian Chamber.