Worker close to 1955 Act eligibility
A fictional scenario developed to give an example for how the new Community Services Industry portable long service leave scheme will apply to different individuals across the industry.
Case study 4: Joe – disability support worker close to 1955 leave
Background:
Joe is a 50-year-old disability support worker employed by a non-government provider. He has been with the same employer for 8 years as of July 2025, starting in July 2017.
How the schemes apply:
- Joe was working within the sector at the launch of the portable scheme on 1 July 2025 and receives the foundation worker bonus.
- He is on track to hit 10 years of continuous service in July 2027, making him eligible for long service leave under the 1955 Act.
- His employer is still responsible for that 1955 Act payment.
- The employer will be able to claim back a portion of the 2 years’ worth of service that was part of the 1955 Act from the Long Service Corporation after the leave is taken by Joe.
Outcome:
- Joe takes leave in July 2027 under the 1955 Act, paid by the employer. Joe’s employer calculates his leave entitlement to be 8.6667 weeks of leave for his 10-year service. Joe’s employer has been making contributions to the fund since 1 July 2025, which equates to 1.7328 weeks of this entitlement.
- Joe’s employer calculates Joe’s ordinary weekly pay rate under the provisions of the 1955 Act, which in this case is $832.50 per week.
- The employer complies with the 1955 Act and pays Joe the full leave entitlement of 8.6667 weeks x $832.50, totalling $7215.03.
- The employer then seeks 1.7328 x $832.50 from the Corporation, who will reimburse the employer $1442.56.
This scenario is not representative of any individual and does not consider your own circumstances. It is designed for demonstrative purposes only.
