In exciting news for the staff of many of our clients, the NSW Government last week passed legislation to introduce portable long service leave (LSL) for community services workers in NSW. This follows Queensland, the ACT, and Victoria, who have had similar schemes successfully in place for a number of years.
 
The scheme will allow community sector workers in NSW to access paid LSL based on how long they have been employed in the sector, as opposed to how long they have worked for a single employer. The change is expected to benefit up to 250,000 workers, with more than 75% of those being women.
 
This reform means that affected employees will receive 6 weeks paid leave, after 7 years of employment in the sector, regardless of how many times they change employers. It will also be available to casual or part-time employees, who can access the scheme after the equivalent time (calculated on a pro-rata basis).
 
This change recognises that community sector employees (particularly frontline workers) often have continuous employment in the sector but across a range of different organisations. Long term job security can be uniquely affected in the community sector, due to factors such as short-term funding arrangements.
 
In terms of how it will operate, employers will pay a levy to the Long Service Leave Corporation to cover the cost (rather than budget for long service leave via a leave provision, as is the current practice). The scheme will officially begin on 1 July 2025. Purpose will work with clients on implementing the changes, where relevant.