Navigating long service leave: Insights for Australian employers

13 March 2025

Share this article

At our Workforce Leaders’ Forum on 11 March 2025, PwC was pleased to host Robert Hortle, Commissioner of the Wage Inspectorate Victoria, and Georgia Potter Butler, Director of New South Wales Industrial Relations who shared insights and provided invaluable guidance for Australian employers striving to ensure compliance with long service leave (LSL) obligations.

Robert and Georgia both recognised that LSL compliance is a legal and a moral obligation. They spoke about their roles as LSL regulators, including:

being a source of education, information and guidance for employers
enforcing compliance, and
pursuing judicial clarity through the courts.

Key messages and lessons for large employers

Navigating the complex state, federal and industry level regimes requires a deliberate investment in education and compliance by large employers. The key messages and lessons passed on by Robert and Georgia were:

Understanding complexity: LSL legislation varies across states and territories, necessitating a thorough understanding of jurisdiction-specific requirements. In addition, the legislation for some states is many decades old and doesn’t always align with current ways of working. Investment in education and training is critical as is support for detailed interpretation and engagement to navigate areas of ambiguity.

‘If you are trying your best... It is not a get out of jail free card, but will be taken into consideration.’

Georgia Potter Butler, Director of NSW Industrial Relations

Proactive compliance: Early conversations at the highest organisational levels about compliance are crucial to ensure correct and timely LSL entitlements and to prevent the escalation of disputes.

‘Conversations in the boardroom are what keep you out of the courtroom.’

Robert Hortle, Commissioner of the Wage Inspectorate Victoria

Limitations with payroll systems: Many default payroll modules are not equipped to handle all the LSL complexities, necessitating the use of manual tools, such as spreadsheets, in addition to investment in robust systems, processes and expert guidance.

Record-keeping: Accurate and complete records covering service history, leave periods, historical earnings and employment status changes are essential to avoid compliance and legal risks. Understanding and addressing gaps in historical records is critical to enabling future compliance.

Seeking expert advice: Leveraging trusted advisors and engaging early with regulators to resolve ambiguity can help navigate LSL complexities and prevent costly mistakes.

Conclusion

LSL is a cornerstone of employee benefits in Australia, reflecting a commitment to recognising and rewarding long-term service. By understanding LSL complexities and taking proactive steps to ensure compliance, employers can foster a culture of respect and recognition while avoiding costly legal pitfalls. The insights shared by Robert and Georgia serve as a valuable guide for HR, finance and workforce professionals dedicated to upholding these important entitlements.

For more details, watch the on demand here.