Employees are entitled to long service leave if they have worked for a long period with one business.
Most workers in Victoria qualify if they have worked continuously with one employer for at least 7 years.
This includes full time, part time, casual, seasonal and fixed term workers.
Employers have an obligation to keep records of long service leave and ensure their staff can use it when they are eligible.
Employers are also required to pay workers the equivalent of any unused long service leave when the employment ends.
If a business changes hands, the new operator may also be responsible for paying these entitlements.
It is an offence to withhold long service leave and to falsify or avoid keeping records.
Businesses who break the law can face a range of consequences, from a formal warning through to prosecution, where penalties can be thousands of dollars for each day the offence continues.
Long service leave can be calculated using the online calculator on the Wage Inspectorate’s website.
If a long service leave entitlement is withheld by an employer, it can be investigated by the Wage Inspectorate.
To avoid a costly surprise employers should plan ahead and budget for long service leave.
Free information and support is available to help employers meet their long service leave responsibilities.
For more information, head to the Wage Inspectorate Victoria website.
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