Last week, the NSW Parliament passed changes that provide employers and employees more flexibility to long service leave only during the COVID-19 crisis.
Amendments to the Long Services Leave Act 1955 allow employers and employees to reach an agreement to access long service leave outside of the traditional arrangements. Key amendments include:
- Waiving the one-month notice period for taking leave (by mutual agreement between employee and employer); and
- Greater flexibility for employees to take this leave in shorter blocks if they wish (rather than traditional monthly blocks).
The changes support employers by allowing employees to access long service leave provisions rather than having to be stood down or made redundant.
NSW Treasurer Dominic Perrottet introduced the changes to the NSW Parliament on Tuesday to provide another way for businesses to maintain their workforce during what will be an extended period of disruption.
“The flexibility [is] very important during a time when businesses are looking at every option to keep staff on their books,” NSW Treasurer, Dominic Perrottet said.
NSW Business wrote to the State’s Treasurer seeking urgent changes to the legislation to give businesses additional options to draw down existing provisions, maintain cash flow, and keep employees in ongoing employment during this exceptional time.
The changes will only operate during the COVID-19 pandemic with the legislation being in effect for six months from 24 March 2020. There is the possibility that changes will be extended for an additional year once the impacts of COVID-19 are realised.
