Australian workers could soon be entitled to two months of long service leave even if they don’t stay 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 current long service leave system.
The proposal, called “portable” long service leave, would give workers two months of annual leave if the employee works for ten years for multiple employers.
The reforms would be “universal”, meaning Australian workers across all sectors and industries, including casual workers, would be eligible.
Portable long service leave would mimic the retirement system in which multiple employers contribute to workers’ leave period.
This would mean that employees can keep contributions made by all of their employers even if they change jobs.
The union voted in favor of 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 should be reviewed to reflect changes in the workplace.
Portable long service leave would give workers two months’ annual leave if the employee works for ten years for multiple employers (pictured, Sydney workers)
“While secure, long-term employment was once the norm for most, millions of people are now in insecure jobs, with 22 per cent of Australian workers in casual work,” it says.
‘For AWU members and millions of other people in insecure jobs, the prospect of being entitled to statutory LSL (long service leave) is remote at best.
“Less than a quarter of all workers have been with their employer for more than 10 years and 11 percent do not expect to remain in their current position 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 implement sensible and fair industrial relations reform, to see a portable long service leave scheme entrenched in our employment rights,” Mr Farrow said.
“Once the Albanian government implemented the Same Work, Same Pay laws, what better way to start a second term than with an innovative reform like this.”
Farrow said that under the proposed changes, workers would have to wait a “reasonable period” before using their leave when changing jobs.
Daily Mail Australia has contacted Anthony Albanese’s office for comment.
Australian workers could soon receive two months of long service leave even if they don’t stay with the same employer for 10 years under a radical new plan (pictured, workers in Sydney)
The proposal has been criticized by some Australian business leaders.
Ai Group chief executive Innes Willcox said the plan would stifle employers’ ability to retain more of their workforce.
“Adopting portable universal long service leave would be a deeply misguided move that would inevitably have significant adverse impacts on employers, including higher costs and new administrative burdens,” Mr Willcox said.
His comments come after the Reserve Bank of Australia forecast 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 worked for an employer for 10 years on a pro rata basis.
However, leave entitlement varies by state and territory.
Some industries in Australia, such as construction, security and community services, already offer portable long service license entitlements.
The system allows employees to retain their accrued long service leave even if they move to work for different employers or work on different projects.