Portable long service leave bill passes in ACT

The ACT Legislative Assembly has made a decision on a bill that would see some workers carry their long-service leave between jobs.

The ACT has passed a bill to expand portable long service leave in the hair and beauty, accomodation and food service industries. Picture: Supplied

The ACT Legislative Assembly has passed a bill which will allow workers in the hair and beauty, accommodation, and food services industry to take their long service leave with them to new employers.

Portable long service leave is already available to Canberrans working in the community services, construction, cleaning and security industries.

ACT Minister Work Health and Safety Mick Gentleman tabled the bill in November last year.

“I am proud of what our Portable Long Service Leave Schemes achieve in providing more workers with fair and equitable access to long service leave entitlements, recognising their service in their chosen industry,” Mr Gentleman said after the bill was passed on Wednesday.

ACT Minister Mick Gentleman. Picture: supplied

“Workers in these industries are often highly mobile, with insecure working arrangements such as short-term contracts and casualised workforces and we are helping protect these workers.”

Mr Gentleman said business in the affected industries would have two years to prepare for the implementation of the bill.

He said the ACT Long Service Leave Authority would support business in registering with the scheme and information about meeting new obligations.

During debate on the bill on Wednesday Liberal MLA Leanne Castley described the bill as a “hit on Canberra small businesses” at a time ”when they can least afford it”.

“(Small businesses are) the heart and soul of our local community,” she said.

Liberal MLA Leanne Castley has described the expansion of portable long service leave as a “hit” on small business. Picture: Julia Kanapathipillai

“Largely unsuspecting (businesses) will all be hit by this 1-2 per cent levy on small business payroll when interest rates and input costs are rising and economic growth contracting

“This will cause job losses and business closures all while many small businesses are still recovering from Covid-19

“Given the transient nature of employment in these industries it is doubtful that many workers will ever see any benefit.

Members of Canberra’s business community have raised concerns about the bill.

Emmalene Mahar said she was concerned the bill would create an “incentive to leave” for employees. Picture: Julia Kanapathippillai

In January Eden Hair Energy salon owner Emmalene Mahar said she was concerned the expansion of portable long service leave would be an incentive for employees to leave.

Ms Mahar also said she did not believe the consultation process was open, transparent or genuine.

“I only learned about it through an industry association I’m actively involved in,” she said.

Australian Hotels Association ACT branch general manager Jason Hawketts said he began his role on the day the bill was tabled, and was unable to make a submission to the inquiry in time.

“It just does not feel like we’ve had enough time to get enough of the correct data and the correct responses from everybody,” Mr Hawketts said.

“It just doesn’t feel like they’ve asked enough people their opinions about this.”

The inquiry into the bill began on December 8 with the report released on January 23.

The report recommended the bill pass, and included a dissenting report from Ms Castley.

Only 10 submissions were received from the inquiry, with two submissions being in favour of the bill.

The report states the deadline for submissions to the inquiry had been extended to January 19 due to it being run during the festive period.