Paying long service under the Long Service Leave Act 1955

If you employ the same person for long enough they may be entitled to a long service benefit from you under the NSW Long Service Leave Act 1955.

The portable long service scheme does not change the entitlements already accrued under the 1955 Act.

Where a worker’s employment is terminated and an entitlement exists under the 1955 Act, the full entitlement accrued becomes due and payable by the employer. There is no provision under the 1955 Act for an employee to defer payment of a long service leave entitlement on termination of their employment.

Where a worker receives a payment from the Corporation under the Contract Cleaning Industry (Portable Long Service Leave Scheme) Act 2010, the employer has no further liability under the 1955 Act for the period of accrual covered by the Corporation’s payment.

Further information about the 1955 Act can be obtained by contacting the NSW Office of Industrial Relations on 13 16 28 or online www.industrialrelations.nsw.gov.au.

REIMBURSEMENT OF LONG SERVICE PAYMENTS MADE TO WORKERS

Employers should advise the Corporation if long service has been paid to a worker by completing an Employer Application for Payment form as soon as possible after making the payment. Prompt lodgement with the Corporation ensures payment is made as quickly as possible and avoids any double payment of long service to the worker.

Reimbursements to employers will only be made for the part of the entitlement that was accrued from 1 July 2011, and only where return lodgment and levy contributions are up to date.

Reimbursements are calculated based on the following formula:
  • Number of weeks paid and accrued from 1 July 2011 X weekly wage used for the 1955 Act payment.
Example

A long service payment was made for a terminated worker with employment dates 25 August 2007 to 31 January 2016.

Under the 1955 Act, the worker is entitled to a total of 7.313 weeks. The actual entitlement accrued from 1 July 2011 to 31 January 2016 is 3.9768 weeks. The 1955 Act payment was based on a weekly pay rate of $832.50.

Therefore the reimbursement by the Corporation would be 3.9768 weeks X $832.50 = $3310.68.

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