Discussion: Long Service Leave
We have not been keeping aside provisions for long service leave and need to as this is a legal requirement for all employees. Working towards a proposal that 1.67% be set aside in each person's payrun to cover this. There are some logistic involved: do we back date this? do we set up a separate account for LSL provisions? Normally LSL is payable for between 5-10 years of continuous service. What do we do with money that has been set aside by someone who leaves before this time period?
Yvonne Wed 29 Aug 2018 12:35AM
I think LSL is a secondary discussion we need to have. ...we need clarity re casual vs contractors last year, and considering the points people have raised in the last few months, it is moving to being quite urgent to address...
Deleted User Fri 31 Aug 2018 6:02AM
I will post the question on casual employees in the Q&A.
The LSL thing could be simple if we for example had a proposal that from a certain date we started setting aside 1.67% of wages towards LSL. We could include an option to backdate (this applies mostly to long term employees like @deebrooks, @michaelakennedy and @michelledunscombe, so maybe each person can decide about what they would like to do to this point.) Re interest on LSL, it would be negligible (and very little compared to that which we could be paid on Tax that sits with the ATO for a year).
Deleted User Fri 31 Aug 2018 6:50AM
BTW -LSL applies to casuals as well
Lyb Makin Sun 9 Sep 2018 12:23AM
Hi Kerry, I agree that we should set a date e.g. 1 October 2018 for all casual employees to set aside 1.67% of wages towards LSL. I am wondering firstly if we can make this is proposal to get things underway? Regarding the backdating, perhaps we could have a separate thread about whether this comes out of personal buckets - or whether it comes out of the admin bucket?
Poll Created Sun 9 Sep 2018 8:31AM
That from the 1st payrun in October we commence setting aside 1.67% (of pre tax wages) for each person for contributions to Long Service Leave. Also that any accrued long service leave to be paid out whenever an individual choses to leave the organisation or in accordance with legislation applicable to the state the person resides in. (for most this is 10 years, with some provisions for 5 years in certain circumstances) Closed Sun 16 Sep 2018 8:02AM
Results
| Results | Option | % of points | Voters | |
|---|---|---|---|---|
|
|
Agree | 75.0% | 3 |
|
| Abstain | 25.0% | 1 |
|
|
| Disagree | 0.0% | 0 | ||
| Block | 0.0% | 0 | ||
| Undecided | 0% | 24 |
|
4 of 28 people have participated (14%)
Lyb Makin
Sun 9 Sep 2018 8:56AM
Clarifying question, though: where does the pre October 2018 amount come from if it needs to be paid out?
Lisa Zulfiqar
Mon 10 Sep 2018 12:06AM
As a contractor, this does not affect me currently, but if I was to change over to staff, it is a great idea. Questions
1. how do you collect all the past amounts that have been since people started
2. also if someone was to change from contractor to staff, would the amount start from then?
3. What are the provisions if people are to take earlier, do we have this re hardship etc 4. some take at 1/2 pay can this happen as well if they meet all other criteria?
5. where does this 1.67% come from
Deleted User Sun 9 Sep 2018 6:48PM
any back dating would need to be drawn from individual buckets and I think perhaps it could be optional-maybe we need something on paper.
Deleted User Mon 10 Sep 2018 2:48AM
HI Lisa,
I will number the responses with the same numbers:
1: I think that this is an individual conversation with each person. I for example, I myself am not interested in backdating, (it would still need to come out of my bucket, anyway)
2: LSL starts whenever a person starts as an employee
3: Each state has different variations on this. Info can be found here: https://www.fairwork.gov.au/leave/long-service-leave
4: 1.67% is how much you need to put aside to ensure that there is enough to cover 8.67 weeks of leave at 10 years of service. (not my calculation, this is pretty well standard).
Jason Emmins · Tue 28 Aug 2018 2:06PM
I would think this is something that we could start to set aside. Are we able to do a poll of members to see what their thoughts are (i.e. yes or no response) and then ask if we should also backdate this? It does however raise the questions you raised and also interest accumulated on LSL entitlements.
Just also wondering, as "casual employee's" do we need to this about this in a bit more detail as well (i.e. how long can a casual employee be employed on regular basis before being considered permanent)? I think this would also have some implications for us as well. Just a thought?