Aussie workers could soon be eligible for two months of long service leave even if they don’t remain with the same employer for 10 years under a bold new plan.
The Australian Workers’ Union (AWU) said the policy, announced at a national conference in Perth this week, would replace the existing long service leave system.
The proposal, dubbed ‘portable’ long service leave, would give workers two months of annual leave if the employee works for ten years for several employers.
The reforms would be ‘universal’ meaning Aussie workers across every sector and industry, including casuals, would be eligible for the entitlement.
Portable long service leave would mimic the superannuation system where multiple employers make contributions to workers’ leave period.
This would mean that employees can keep the contributions made by all of their employers even if they switch between jobs.
The union voted for a motion at the national conference and urged the federal government to implement the proposal.
The AWU, which has 75,000 members, stated in a resolution that the existing leave entitlement needs to be revised to reflect changes to the workplace.
‘While secure, long-term employment was once the norm for most, millions are now in insecure work: 22 per cent of Australian workers are in casual roles,’ it states.
‘For AWU members and millions of others in insecure work, the prospect of qualifying for statutory LSL [long service leave] is remote at best.
‘Less than a quarter of all workers have been with their employer for over 10 years and 11 per cent don’t expect to remain in their current role for another year.’
AWU national secretary Paul Farrow has urged the federal government to consider the proposal in a bid to secure better rights for workers.
‘Now is the time, with a federal Labor government prepared to roll out sensible, fair minded industrial relations reform, to see a portable Long Service Leave scheme cemented into our workplace rights,’ Mr Farrow said.
‘With Same Job Same Pay laws taken care of in the Albanese government’s first term, what better way to begin a second term than with an innovative reform like this.’
Mr Farrow said under the proposed changes workers would be required to wait for a ‘reasonable period’ before they use their leave when they switch jobs.
Daily Mail Australia has contacted Anthony Albanese’s office for comment.
The proposal has been slammed by some Australian business leaders.
Ai Group Chief Executive Innes Willcox said the scheme would stifle the ability of employers to retain more of their workforce.
‘Adopting universal portable long service leave would be a deeply flawed step that would inevitably have significant adverse impacts on employers, including higher costs and new administrative burdens,’ Mr Willcox said.
His comments come after Australia’s Reserve Bank forecasted that the national unemployment rate could rise from 4.1 per cent to 4.5 per cent in June 2025.
Workers in Australia are typically entitled to two months of long service leave if they have been working for an employer for 10 years on a pro rata basis.
The leave entitlement however, does vary from each state and territory.
Some industries in Australia such as construction, security and community services already offer portable long service leave entitlements.
The system allows employees to keep their accrued long service leave even if they move on to work with for different employers or to work on different projects.
