We have a few casual employees who have worked with us for nearly 10 years. One of the employees converted to part-time employment last year. What is the eligibility criteria of long service leave for the employee who converted and those who are longstanding casuals?
The legislation in your state, the Long Service Leave Act 2018 (Vic) (the Act), entitles casual employees to long service leave (LSL) where their employment has been continuous with one employer for 7 years. Under the Act,
this means that there must not be an absence of more than 12 weeks between any two instances of employment, unless:
- the employee and the employer agree before the start of the absence;
- the absence is in accordance with the terms of the engagement;
- the absence is due to the employee taking up to 104 weeks’ paid or unpaid parental leave;
- the absence is caused by seasonal factors; or
- the employee has been employed on a regular and systematic basis, and has a reasonable expectation of being re-engaged.
Employees are entitled to 6.0667 weeks of LSL after 7 years. An employer may agree to an employee taking a period of leave at half pay. For example, an employee with 13 weeks’ accrued LSL could take 26 weeks of LSL at half pay.
To calculate payment, use the weekly pay earned from working normal weekly hours at ordinary time rate of pay. Where an employee’s rate of pay varies from week to week, the employee’s rate of pay for calculating LSL will be averaged over the preceding 12 months or 5 years, or entire period of employment, whichever average rate is the greater. Where an employee’s ordinary hours have changed in the 2 years immediately before the employee takes
LSL, the employee’s hours for calculating LSL will be averaged over the preceding (a) 52 weeks; (b) 260 weeks; or (c) entire period of employment – whichever average is the greatest.