Portable Long Service Leave

Posted 28 Jun

Portable Long Service Leave (PLSL) 

In today’s dynamic workforce, some industries are inherently more transient than others. Industries such as construction and cleaning are often characterised by work won through tender processes or project based work. As a result, employees in these fields frequently find themselves changing employers more often than others. This employment pattern can make accruing long service leave—a benefit traditionally reliant on long-term tenure with a single employer seem impossible. Enter…. portable long service leave (PLSL): a game-changer designed to ensure that workers in these transient industries are not disadvantaged.

What is Portable Long Service Leave?

A portable long service leave scheme allows employees to accumulate long service leave entitlements despite changing employers, as long as they remain within the same industry. This system acknowledges the unique nature of industries where ongoing employment with a single employer is rare. 

Here’s an example of how portable long service leave schemes work:

Employers contribute to an externally managed fund based on their employees' hours of work. When an employee has accrued the necessary years of service within the industry, as defined by relevant legislation, they can take long service leave. The payment during this leave is drawn from the fund, rather than from the current employer.

Broad Industry Definitions

One of the notable features of PLSL schemes is the broad definition of what constitutes an ‘industry’ under each legislative framework. For instance, the construction industry can include a wide range of occupations and sub-industries, such as manufacturing, joinery, electrical, and plumbing. This comprehensive approach ensures that a diverse array of workers can benefit from these entitlements, even if their specific job roles vary widely.