February 11, 2022   |   Compliance

The Western Australian Long Service Leave Act gets simpler to understand

The Long Service Leave Act 1958 (LSL Act) is being modernised with amendments that will include more straightforward language and clarification on the terms of employment.

While no set date is confirmed, the amendments will be introduced in early 2022.  

We have highlighted some of the changes for you below. For more details, refer to the LSL Act and the Industrial Relations Legislation Amendment Act 2021 or view the changes on www.commerce.wa.gov.au. 

Who is entitled to long service leave (LSL) in Western Australia?  

While there can be exceptions and exclusions, the general rule is that the LSL Act applies to the following groups of employees; 

  • Western Australian state system employees (subject to exclusions) 
  • Western Australian employees of national system employers and covered by federal modern awards and registered agreements (subject to exclusions) 
  • Full time, part-time, casual and seasonal employees, including employees with seasonal work breaks and varied hours. 
  • Apprentices and trainees 

Examples of Western Australian based employees not covered by the LSL Act include. 

  • State system employees, if their award or agreement has LSL entitlements that are at least equivalent to those in the Long Service Leave Act. 
  • Western Australian public sector employees who qualify for LSL entitlements within the state award or industrial agreement that covers their employment (LSL Act applies to employees who may not be eligible under these instruments, e.g., casual employees). 
  • Employees within the construction industry who are covered under the MyLeave portable long service leave Scheme. 

How does LSL work in Western Australia? 

After ten years of continuous employment with the same employer, the entitlement to LSL for full-time, part-time, and casual employees is 8.667 weeks (about two months).  

After the first ten years with the same employer, the employee’s entitlement changes to 4.333 weeks for every additional five years of service.  

When employment ends after at least seven years of continuous employment, the employee is entitled to the pro-rata amount of LSL that they have accrued. 

The good news from a payroll perspective is that there are no amendments to the amount and entitlement period for LSL. 

Definitiv automatically captures and reports on a more accurate representation of your company’s leave and accrual provisions within the product to help you manage the leave liability. Read more about Definitiv’s reporting features here. Or book a demo to see it in action. 

What are the upcoming amendments to the LSL Act? 

For more detail on the amendments that may impact your business read our blog; ‘What are the amendments to the Long Service Leave Act in WA? 

Additional information on the amendments to the Long Service Leave Act 1958 and how they may impact your business and employees can be found on www.commerce.wa.gov.au. 


Disclaimer
Information provided in this article is general information, not legal advice and should not be relied upon as such. Definitiv does not accept liability for any loss or damage arising from reliance on the content of this article.