Long service leave
Encyclopedia
Long service leave is an additional employee vacation payable after long periods of service with an employer in Australia
and New Zealand
.
In Australia, unlike many other countries, employees are generally entitled to additional leave, known as long service leave, over and above their annual leave if they stay with a particular employer for a certain length of time. A common entitlement in Australia is that employees who remain with a particular employer for ten years will receive an entitlement of eight and two-thirds weeks' (two calendar months) paid leave and more on a pro-rata
basis the longer they stay with that employer. This amount was originally thirteen weeks (three months) after fifteen years in most states until recent years. In the Australian Capital Territory, Australia, an employee is entitled to pro-rata long service leave after seven years.
The Institute of Actuaries of Australia
estimated that the total value of long service leave benefits in Australia was around $16.5bn in 2001.
There has been a debate in Australia about the protection of employee entitlements (including long service leave) in the event of employer insolvency, with some high profile cases involving employees losing benefits that had been accrued.
Within a limited number of industries, such as the construction industry, the coal-mining industry or within the public sector, it is possible to transfer long-service leave entitlements from one employer to another. Known as portable long service leave
this is mostly done through specific legislated schemes which employers in those industries pay into, and which administer the funds for employees.
Long service leave is a benefit unique to Australia and New Zealand (and possibly some public servants in India) and relates to their colonial heritage. Long service leave developed from the concept of furlough. Furlough is a Dutch word (meaning from leave) and its usage originates in leave granted from military service.
In the 19th century, furlough as a benefit as it is now known, was a privilege granted by legislation to the colonial and Indian Services. In Australia, the benefits were first granted to Victorian and South Australian civil servants. The nature of the leave allowed civil servants to sail 'home' to England, safe in the knowledge that they were able to return to their positions upon their return to Australia.
The concept spread beyond the public service over the period 1950 to 1975, mainly as a result of pressure from employees seeking comparability with the public service.
Nowadays, long service leave is ingrained in Australian culture and is specified by state based and some federal legislation. Interestingly, it is not often taken when it falls due.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
.
In Australia, unlike many other countries, employees are generally entitled to additional leave, known as long service leave, over and above their annual leave if they stay with a particular employer for a certain length of time. A common entitlement in Australia is that employees who remain with a particular employer for ten years will receive an entitlement of eight and two-thirds weeks' (two calendar months) paid leave and more on a pro-rata
Pro-rata
Pro rata is an adverb or adjective, meaning in proportion. The term is used in many legal and economic contexts. It is sometimes spelled pro-rata, but this is technically a misspelling of the Latin phrase...
basis the longer they stay with that employer. This amount was originally thirteen weeks (three months) after fifteen years in most states until recent years. In the Australian Capital Territory, Australia, an employee is entitled to pro-rata long service leave after seven years.
The Institute of Actuaries of Australia
Institute of Actuaries of Australia
The Institute of Actuaries of Australia , commonly referred to as the Institute, is an organisation representing the actuarial profession in Australia. The Institute has origins which trace back to 1897.- History :...
estimated that the total value of long service leave benefits in Australia was around $16.5bn in 2001.
There has been a debate in Australia about the protection of employee entitlements (including long service leave) in the event of employer insolvency, with some high profile cases involving employees losing benefits that had been accrued.
Within a limited number of industries, such as the construction industry, the coal-mining industry or within the public sector, it is possible to transfer long-service leave entitlements from one employer to another. Known as portable long service leave
Portable Long Service Leave
Long Service Leave is type of leave unique to Australia and New Zealand, typically awarded to a Staff Member after completing a considerable tenure with a single company...
this is mostly done through specific legislated schemes which employers in those industries pay into, and which administer the funds for employees.
Long service leave is a benefit unique to Australia and New Zealand (and possibly some public servants in India) and relates to their colonial heritage. Long service leave developed from the concept of furlough. Furlough is a Dutch word (meaning from leave) and its usage originates in leave granted from military service.
In the 19th century, furlough as a benefit as it is now known, was a privilege granted by legislation to the colonial and Indian Services. In Australia, the benefits were first granted to Victorian and South Australian civil servants. The nature of the leave allowed civil servants to sail 'home' to England, safe in the knowledge that they were able to return to their positions upon their return to Australia.
The concept spread beyond the public service over the period 1950 to 1975, mainly as a result of pressure from employees seeking comparability with the public service.
Nowadays, long service leave is ingrained in Australian culture and is specified by state based and some federal legislation. Interestingly, it is not often taken when it falls due.
See also
- VacationVacationA vacation or holiday is a specific trip or journey, usually for the purpose of recreation or tourism. People often take a vacation during specific holiday observances, or for specific festivals or celebrations...
- Parental leaveParental leaveParental leave is an employee benefit that provides paid or unpaid time off work to care for a child or make arrangements for the child's welfare. Often, the term parental leave includes maternity, paternity, and adoption leave...
- Labour and employment lawLabour and employment lawLabour law is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions, employers and employees...
- Employee benefitEmployee benefitEmployee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
- Sick leaveSick leaveSick leave is time off from work that workers can use during periods of temporary illness to stay home and address their health and safety needs without losing pay. Some workplaces offer paid sick time as a matter of workplace policy, and in few jurisdictions it is codified into law...
- Work-life balanceWork-life balanceWork–life balance is a broad concept including proper prioritizing between "work" on the one hand and "life" on the other. Related, though broader, terms include "lifestyle balance" and "life balance".-History:The work-leisure dichotomy was invented in the mid 1800s...