Long Service Leave | Employer Obligations
8 November 2021
Do I have any obligation to let my employees know when they become eligible to take long service leave?
The short answer is no, however with matters relating to people there is rarely just one answer.
Long Service Leave Act
For NSW businesses who fall under the NSW Long Service Leave Act, employees are entitled to 2 months leave once they have worked with the same employer for 10 years. Its important to note here that just because you are located in NSW (or another state) doesn’t mean you will be governed by that states legislation, you could fall under the federal legislation. There are a couple of reasons why this might happen and if you are unsure, please contact us and we can discuss this further.
It’s been 10 Years
Once an employee has been working for you for 10 years, they’ll be able to access this accrued Long Service Leave. The reality is that this leave has been accruing since they reached their 5 year anniversary, they just haven’t been able to take it yet. There is no requirement for you to tell the employee about the leave available to them but there are a few of reasons why we would suggest this is a good idea….
- Cost: Long service leave is a cost liability for your business. If employees don’t take any long service leave this liability grows and can be a financial burden on the company. Encouraging your employees to take this regularly reduces this burden.
- Celebration: 10 years is a long time! It’s an important milestone for both you and your employee and a perfect opportunity to celebrate them and to let them know about this additional leave they now have access too.
- Retention: It’s a good retention tool. If someone has been with your business for 10+ years, chances are they are valued and you want them to stay. Having access to a now ever growing Long Service Leave can motivate loyalty. Once employees have been with the business 10+ years, each subsequent period of 5 years of service provides more access to paid leave. So the longer the stay the more leave they accrue meaning if are less likely to move on to a different role.
If you need to discuss the best approach for your business, book your consultation with an Impact HR expert
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