From 1 November 2018, the new Long Service Leave Act 2018 (Vic) will come into force and the changes are seen to be beneficial to parents and carers who change their work hours when looking after children or loved ones.

Essentially the major changes in this legislation allow employees to access their Long Service Leave entitlement sooner, in smaller blocks of leave, and have unpaid parental leave of up to a year counting as continuous service when calculating and employees Long Service Leave entitlement.

Here is a detailed table of all of the Long Service Leave entitlement changes enacted by this change in legislation.

Issue	Current law	Changes to the law
Taking of leave
Entitlement to LSL	An employee is entitled to take LSL after 10 years of continuous service with one employer. If an employee’s employment ends after 7 years of continuous service with one employer, the employee is entitled to a pro rata payment of their LSL entitlement.	An employee is entitled to take LSL after 7 years of continuous service with one employer.
Flexibility in LSL periods	LSL must be taken in one period, except where there is an agreement between the employer and employee for separate periods. If an agreement is reached, the first 13 weeks of LSL must be taken in 2 or 3 separate periods, and any subsequent LSL may be taken in two separate periods.	An employee is entitled to request LSL for a period of not less than 1 day, where an employer must grant an employee’s request to take LSL as soon as practicable after receiving the request unless there are reasonable business grounds to refuse.
Continuity of employment
Unpaid parental leave	Any period of unpaid parental leave will not count towards calculating an employee’s period of continuous service.	Any period of unpaid parental leave up to 52 weeks will count as service, where any period beyond 52 weeks will not count as service but will not break continuity of employment.
Business transfers	If an employer’s business assets transfer to a new employer, an employee who performs duties in connection with the assets is treated as being employed by ‘one employer’. However, this only applies to tangible assets such as land, plant and equipment.	The definition of ‘assets’ has been amended to include both tangible and intangible assets.
Employment ending by resignation or termination	The employment is to be regarded as being continuous despite being dismissed at the initiative of the employer, but only if the employee is re-employed within a period not exceeding 12 weeks after the dismissal.	The employment is taken to be continuous despite an absence from work caused by the termination of the employment at the initiative of the employer or the employee (ie resignation), if the employee is re-employed by the employer within 12 weeks after cessation of employment.
Calculation of leave
Change of hours	If an employee’s working hours have changed during the last 12 months immediately before taking LSL, the employee’s normal weekly number of hours is the greater of: the average weekly hours worked over the past 12 months or 5 years.	If an employee’s working hours have changed during the last 104 weeks (2 years) immediately before taking LSL, the employee’s normal weekly number of hours is the greater of: the average weekly hours worked over the past 52 weeks (1 year), 260 weeks (5 years) or the last period of continuous employment.
Operation and enforcement
Ability to seek exemption	An employer may apply to the Industrial Division of the Magistrates’ Court to be exempted from complying with the provisions in the 1992 Act.	The employer’s right to apply for an exemption is abolished (although the existing exemptions remain in force).
Powers of authorised officers	There is currently no specific power for a departmental officer to request information or documents.	The Secretary may appoint a person as an authorised officer and give them the power to request information or documents from persons (eg employers).
Penalties
Type of penalty	An employer who:   a. fails to notify an employee of any modifications or removal of an employee’s entitlements under the 1992 Act, or   b. terminates an employee’s employment for the employee’s exercise of their rights under the 1992 Act, may be ordered to pay civil penalties.	The civil penalties have been abolished under the Act, where any offences will now attract a criminal penalty.
Criminal penalties	For a number of offences (eg payments in lieu of LSL), the penalty is 20 penalty units. The exception to this is the offence relating to an employee working while on long service leave, which attracts a penalty of 5 penalty units for breach by an employee and/or an employer.	For these offences, the penalty has now been amended to:   a. 12 penalty units in the case of a natural person and   b. 60 penalty units in the case of a body corporate. Taking adverse action against an employee due to the entitlement of LSL may result in a penalty of:   a. 12 penalty units in the case of a natural person and   b. 60 penalty units in the case of a body corporate, for each day during which the offence continues. An employer found guilty of an offence may also receive a criminal record.