Australian Workers Union pushes for universal portable long service leave scheme

One of Australia’s largest unions has endorsed a scheme that would guarantee millions of Australian workers two months of long service leave, regardless of whether they have served 10 years with an employer.

The Australian Workers Union’s proposed universal and portable long service leave (LSL) would replace the current system where an employee earns paid leave in recognition of a long period of service with one singular employer.

While laws vary from state to state, a worker typically qualifies for two months paid leave after ten years with the same employer.

At their national conference in Perth on Wednesday, the AWU voted on a motion calling for the Albanese government to legislate the change to establish “uniform LSL rights across Australia”.

“While secure, long-term employment was once the norm for most, millions are now in insecure work: 22 per cent of Australian workers are in casual roles,” the resolution states.

“For AWU members and millions of others in insecure work, the prospect of qualifying for statutory LSL is remote at best.

“Indeed, less than a quarter of all workers have been with their employer for over 10 years, and 11 per cent don’t expect to remain in their current role for another year.

“These changes don’t suggest a more ‘disloyal’ workforce - they reflect the structural features of the modern economy and industrial relations system.”

AWU National Secretary Paul Farrow said under a government legislated scheme, workers would have an account - much like a super account - where contributions are made by multiple employers over time to fund the leave period each decade.

In theory, this would mean two months of paid leave for every Australian, every ten years of work - with no requirement that it be served with a single employer.

While the design of the scheme would require close consideration by government, Farrow said workers would be required to wait a “reasonable period” before using the leave after arriving at a new workplace.

Workers would also be unable to cash out their leave “because we actually want people to have a break, in the same way we support people to save for their retirement through compulsory superannuation contributions,” he said.

The system isn’t entirely new - some states and territories have had legislation for portable LSL schemes in industries including construction, mining and cleaning for several years, allowing employees to keep their LSL entitlement even if they work on different projects for one or more employers.

“Now is the time, with a federal Labor government prepared to roll out sensible, fair minded industrial relations reform, to see a portable Long Service Leave scheme cemented into our workplace rights,” Farrow said.

“With ‘Same Job, Same Pay’ laws taken care of in the Albanese Government’s first term, what better way to begin a second term than with an innovative reform like this.”