Understanding portable long service leave in Victoria

Victoria’s portable long service leave (PLSL) schemes are designed to provide equitable LSL entitlements to workers in specific industries characterised by high-mobility and short-term contracts. These schemes ensure that workers can accrue LSL benefits based on their total service within an industry regardless of employer changes.

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What is portable long service leave?

Traditional LSL rewards employees for extended service with a single employer. However, in industries where employment is often project-based or casual, workers may not remain with one employer long enough to qualify. PLSL schemes address this by allowing workers to accumulate long service leave entitlements across multiple employers within the same industry.

Industry-specific schemes in Victoria

Victoria currently administers PLSL through two main authorities, each overseeing specific industries:

Community services, contract cleaning and security industries

Administered by the Portable Long Service Benefits Authority (PLSBA), this scheme covers:

• Community services: Including roles in disability services, aged care (non-residential), mental health, family violence support and more
• Contract cleaning: Encompassing commercial, industrial, and residential cleaning services
• Security: Covering positions such as crowd control, surveillance, and patrol services.

Workers in these sectors accrue leave at a rate of approximately 0.866 weeks per year of service and become eligible after seven years of recognised service within their industry. The scheme applies to full-time, part-time, casual, seasonal and fixed-term workers.

Employers are required to:

• Register with the PLSBA: Ensuring compliance and proper tracking of employee entitlements
• Submit quarterly returns: Detailing employees’ hours worked and wages paid
• Pay a levy: Currently set at 1.65 per cent for community services and 1.80 per cent for contract cleaning and security, based on each employee’s ordinary pay.

Construction industry

Formerly known as CoINVEST, LeavePlus administers the PLSL scheme for the construction industry. This scheme includes workers in building trades, electrical trades, metal trades, landscape gardening, shopfitting, floor covering and more. Workers under the construction industry scheme accrue approximately 1.3 weeks per year of service and become eligible after seven years of recognised industry service.

Key features of the LeavePlus scheme include:

• Eligibility: Workers become eligible to claim this leave after accumulating 1,820 days (approximately seven years) of recorded service within the industry.
• Levy: Employers contribute a levy of 3 per cent of the ordinary pay of people they employ to perform construction work into a fund.
• Coverage: The scheme applies to employees and self-employed contractors performing eligible construction work in Victoria.

Employers are required to:

• Register with LeavePlus
• Submit quarterly returns
• Pay the required levy.

How the Victorian Chamber can help

Understanding and complying with PLSL schemes is crucial for employers to avoid penalties and ensure fair treatment for employees. For workers, especially those in industries with high employment mobility, these schemes provide a fair opportunity to access long service leave benefits, acknowledging their dedication to the industry rather than a single employer.

If you are unsure about any aspect of the two PLSL industry schemes, we recommend calling our Workplace Relations Advice Line on 8662 5222.

Our workplace relations advisors and consultants can assist you with understanding and navigating the PLSL scheme requirements.

The Victorian Chamber also has a collection of more than 100 expertly designed tools and templates, including leave policies, to help inform and keep businesses compliant with obligations.