Portable long service leave allows workers to accrue leave entitlements even when they change employers within the same industry. Unlike traditional extended service leave, this scheme ensures workers retain their benefits across multiple employers. It applies to industries with high workforce mobility, including building and construction, community services, and cleaning and security.
Employers must register workers, pay a levy, and report contributions to remain compliant. Failure to meet these obligations can lead to penalties and back payments. Understanding how the scheme works helps businesses manage costs, avoid risks, and ensure workers receive entitlements.
This guide explains how the scheme operates, which industries it covers, and what employers must do to comply.
Portable long-service leave allows workers to accrue long-service leave entitlements while moving between employers in the same industry. Employers must register workers and pay a levy to fund these entitlements, ensuring workers receive their benefits when eligible. The scheme applies to high-mobility sectors, including building and construction, community services, and cleaning and security. To remain compliant, employers must keep accurate records and submit regular reports to the scheme’s authority. This system protects worker entitlements while simplifying leave management for businesses.
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Workers earn portable long-service leave entitlements based on working in a covered industry rather than with a single employer. As long as they remain in the same industry, their leave continues to accrue, even if they change jobs.
Employers are responsible for registering workers, paying a levy, and reporting service details to the scheme’s authority. These contributions ensure workers can claim their entitlements once they meet the required service period.
This system benefits high-mobility industries, where workers frequently change employers, ensuring they retain access to extended service leave without starting over each time they move jobs.
Workers accrue long service leave entitlements based on their time in a covered industry. Their leave balance continues to grow even if they change jobs, as long as they remain in the same industry.
Several industries in Australia offer portable long-service leave, including:
FeatureTraditional long-service leavePortable long service leaveEmployer-basedYesNoIndustry-basedNoYesAccumulates across employersNoYesEligibility criteriacontinuous service with one employercontinuous service in the industryApplies to multiple industriesNoYes
This system allows eligible workers to accrue long service leave entitlements even if they work on different projects. It simplifies record-keeping and ensures workers get the benefits they earn.
Workers in a portable long-service leave scheme accrue entitlements based on their total years of service in a covered industry. Unlike traditional systems, their entitlements move with them, even if they change employers. This ensures workers can take extended service leave even if they have worked for multiple businesses.
Workers earn long service leave entitlements based on their time in the industry rather than with a single employer. The standard accrual rate varies by industry and state, but most workers earn leave after seven years of continuous service.
Key factors that affect accrual include:
Employers report worker hours to the scheme authority, which tracks their entitlements. Workers can claim leave once they meet the minimum service requirement.
A worker in Victoria's building and construction industry earns extended service leave after seven years of service. The standard entitlement is 13 weeks of leave for every 10 years worked.
If a worker completes seven years of service, their entitlement is:
(13 weeks ÷ 10 years) × 7 years = 9.1 weeks of leave
If workers change employers but stay in the industry, their entitlements continue to accrue.
Employers in industries covered by the portable long-service leave scheme must pay a levy to fund worker entitlements. This levy ensures workers can claim long service leave even if they change employers. The levy is calculated as a percentage of a worker’s wages and varies by industry and state.
Levy rates depend on industry requirements and government regulations. Each state sets its rates based on factors such as:
If an employer in the community services sector pays a worker $80,000 per year and the levy rate is 1.65%, the annual levy contribution is:
$80,000 × 1.65% = $1,320 per year
If the worker leaves and joins another registered employer in the same industry, their entitlements continue to accrue. The new employer takes over levy payments.
To manage levy contributions effectively, businesses should:
Employers who fail to pay the levy may face penalties. Staying informed and proactive helps businesses manage costs while ensuring workers receive their entitlements.
Workers covered by a portable long-service leave scheme can accrue leave entitlements even if they change employers within the same industry. This ensures they can access their long service leave entitlements when they meet the eligibility criteria.
Workers can check their accrued long service leave entitlements by contacting the scheme’s authority in their state or industry. Most authorities offer online portals where employees can:
If workers notice missing contributions, they should contact their employer or the scheme’s authority for assistance.
Workers must meet the minimum years of service before applying for leave. The process generally includes:
Workers should apply well to ensure their leave is approved on time.
If workers leave the industry before reaching the required years of service, they may lose their accrued leave. Some schemes allow a pro-rata payout if the worker meets certain conditions.
If workers move interstate but remain in the same industry, they should check if their entitlements transfer. Some states recognise service in other regions, but not all schemes are linked.
Workers should stay informed about their rights to ensure they receive the benefits they have earned.
Portable long-service leave entitlements apply to workers across different employment types, including full-time, part-time and casual employees. The scheme ensures that all eligible workers can accrue leave entitlements, even if they move between employers in the same industry. However, how entitlements are calculated may vary based on work hours and employment status.
Full-time workers accrue extended service leave based on their total years of service in the industry. Their entitlements grow consistently as they work regular hours and receive continuous employer contributions to the scheme.
Part-time workers also accrue portable long service leave but at a reduced rate based on their hours worked. The scheme tracks their entitlements proportionally to ensure fairness.
Casual workers benefit the most from portable long-service leave as they often move between employers. Without the scheme, many casuals would never reach the required service period with a single employer.
Employment TypeAccrual MethodEligibility RequirementFull-timeBased on the full industry rateRequired years of servicePart-timeProportional to hours workedRequired years of serviceCasualBased on total hours worked across employersRequired years of service
The scheme ensures that all workers can accrue and access long service leave entitlements regardless of employment type. Workers should check their scheme’s rules to understand their specific entitlements.
Employers must comply with the portable long service leave scheme to ensure workers receive entitlements. However, many companies face challenges in meeting their obligations. Understanding these challenges and applying best practices can help enterprises to avoid penalties and streamline their processes.
Many businesses struggle with compliance due to:
Failure to meet compliance requirements can result in fines, legal action and reputational damage.
Employers can stay compliant by:
Regular audits and internal checks can help identify compliance gaps before they become serious issues.
Good record-keeping ensures compliance and simplifies reporting. Employers should:
Most schemes require employers to submit reports quarterly. These reports should include updated worker details and levy payments. Missing deadlines can result in fines, so businesses should set reminders or automate reporting where possible.
High staff turnover makes compliance harder, especially in industries with short-term contracts. Businesses can manage this by:
Employers who follow these best practices can reduce risks and ensure their workers receive their entitlements.
Businesses covered by the portable long-service leave scheme must meet legal and financial obligations. Employers must register workers, pay levies on time and keep accurate records. Failing to comply can lead to penalties, back payments and reputational damage.
Employers must:
These obligations apply regardless of whether a worker stays with the employer or moves to another business within the same industry.
Businesses that do not comply with the scheme may face:
To avoid penalties, businesses should review their compliance regularly and ensure accurate reporting.
Employers can manage financial risks by:
✅ Register all eligible workers with the scheme
✅ Calculate levy contributions correctly based on wages
✅ Submit reports and payments on time
✅ Keep accurate payroll and leave records
✅ Review compliance regularly to avoid legal risks
Meeting these obligations ensures businesses remain compliant while helping workers receive their entitlements.
Businesses must follow best practices to meet portable long-service leave scheme requirements. Proper implementation helps businesses avoid penalties, manage costs and support workers in receiving their entitlements.
Accurate records help businesses prove compliance during audits. Employers must store:
Authorities may request these records during audits. Keeping them organised reduces the risk of penalties.
Businesses can streamline compliance using payroll and HR software. These systems:
HR and payroll teams should align portable long-service leave compliance with existing processes. Businesses should:
Following these best practices ensures businesses stay compliant while reducing administrative workload.
Community service sector workers move between organisations, making qualifying for traditional extended service leave hard. The scheme ensures these workers accrue long service entitlements across different employers for which they have worked. Eligible employees include those in aged care, disability support and social work. Non-profit organisations and government agencies are included in the scheme.
Each state and territory manages its own portable long service leave scheme. The NSW government and other Australian states and territories have different entitlements, levies and claims rules. Employers should check their state and territory requirements to ensure compliance.
Employers must register with the portable long service leave authority in their state. They must report employee details and pay levies and keep records. Failure to comply can lead to fines. Employers should also ensure clarity in payroll processes to calculate entitlements correctly.
Workers start accruing entitlements from their commencement date in a covered industry. The accrual period varies depending on the state and territory. In some cases, workers may need to wait until 1 January of the following year to begin their accrual period.
For clarity on entitlements, eligibility and levy rates, employers and workers should check with their state’s authority. If they need further guidance, please contact the relevant governing entity for up-to-date rules and compliance details.
Portable extended service leave ensures workers receive their entitlements even if they change employers within the same industry. Employers must register workers, pay the required levy and maintain accurate records to stay compliant. Failing to meet these obligations can lead to penalties and back payments.
Businesses should take a proactive approach to managing portable long-service leave. Using payroll systems, automating levy calculations and conducting regular compliance checks can help reduce risks. Proper record-keeping makes audits more manageable and ensures workers receive their entitlements without delays.
Staying informed about industry regulations is key. Employers should review updates from the relevant scheme authority and seek expert advice when needed. Training HR and payroll teams on compliance requirements can prevent costly errors.
Business Kitz provides document management solutions to help businesses meet their compliance obligations. Our platform simplifies record-keeping, payroll integration and reporting. Explore our solutions today to streamline your business operations and stay compliant.
